Cloudflare Launches Secure, Scalable Sandboxes for Claude Agents; Zscaler Logs 26% Q2 Growth
NET•Zscaler’s Q2 revenue rose 26% to $815.8 million with ARR up 25% to $3.36 billion and a record 22.2% non-GAAP operating margin, fueling a 30% stock surge since late April. Cloudflare introduced secure, scalable sandboxes for Claude Managed Agents to isolate AI workloads across its edge network, enhancing enterprise security capabilities.
1. Zscaler's Q2 FY2026 Financial Performance
Zscaler reported Q2 revenue of $815.8 million, up 26% year-over-year, and annual recurring revenue of $3.36 billion, a 25% increase. Non-GAAP operating margin reached a record 22.2%, EPS of $1.01 beat estimates by 13%, and free cash flow hit $169 million, driving a 30% stock rally since late April.
2. Cloudflare's Secure Sandboxes for Claude Managed Agents
Cloudflare launched secure, scalable sandboxes for Claude Managed Agents, enabling developers to isolate AI workloads within dedicated environments at the edge. This integration enhances enterprise security by containing potential threats and streamlining deployment of AI-driven applications across Cloudflare’s global network.
