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Zscaler ZS Business Segments — Cost of revenue

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Other financials

Income statement

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Revenue$850.5M+25.4%
Gross profit$657.8M+26.0%
Operating income-$29.6M-16.6%
Net income-$13.9M-237%
EPS (diluted)-$0.09-200%

Balance sheet

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Cash & equivalents$982.1M-50.7%
Total debt$1.7B+40.9%
Total equity$2.4B+31.1%
Total assets$7.1B+32.9%

Cash flow

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Operating cash flow$198.0M-6.2%
CapEx$42.4M-41.2%
Free cash flow$155.6M+12.0%

Valuation

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Market cap$22.83B-51.2%
Enterprise value$23.57B-48.9%
P/S7.2×-11.2×

Profitability

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Gross margin76.7%-0.7pp
Operating margin-4.7%-0.1pp
Net margin-2.4%+3.7pp
FCF margin30.4%+0.1pp

Returns & leverage

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Return on equity-3.7%+2.3pp
Debt / equity0.7×+0.1×
Current ratio1.9×+0.6×

Where this comes from

Reported directly by Zscaler in its filing.

Tagged under the XBRL concept us-gaap:CostOfRevenue.

The official record: Zscaler’s 10-Q, filed May 26, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Zscaler's business segments — cost of revenue?
Zscaler (ZS) reported business segments — cost of revenue of $163.78M in Q1 2026.
How has Zscaler's business segments — cost of revenue changed year-over-year?
Zscaler's business segments — cost of revenue increased by 22.3% year-over-year, from $133.89M to $163.78M.
What is the long-term trend for Zscaler's business segments — cost of revenue?
Over 2 years (2023 to 2025), Zscaler's business segments — cost of revenue has grown at a 30.4% compound annual growth rate (CAGR), from $312.96M to $532.07M.
What does business segments — cost of revenue mean?
This includes the direct costs associated with delivering the company's cloud-based security services, such as data center infrastructure, cloud hosting fees, and customer support personnel. It is a critical measure of the efficiency of the company's service delivery model.