Zscaler Q2 EPS $1.01, Revenue $815.8M Beats Estimates, Cuts FY Outlook
Zscaler reported Q2 EPS of $1.01 versus $0.90 consensus and revenue of $815.8 million versus $798.8 million forecast. It raised fiscal 2026 adjusted EPS guidance to $4.02 but trimmed full-year revenue outlook to $3.31–3.32 billion, sending shares down about 9.1% after hours.
1. Q2 Earnings Results
Zscaler reported Q2 adjusted EPS of $1.01, beating the $0.90 consensus estimate, and delivered $815.8 million in revenue versus the $798.8 million forecast, driven by continued adoption of its cloud security platform.
2. Fiscal 2026 Guidance Changes
Management raised full-year adjusted EPS guidance to $4.02 from $3.99, while lowering the revenue outlook to a range of $3.31 billion–$3.32 billion, reflecting more conservative sales projections for the remainder of the fiscal year.
3. Market Reaction
Shares fell approximately 9.1% in after-hours trading following the guidance revision, marking one of the largest single-session drops for the stock in recent quarters.
4. CEO Commentary on AI Demand
CEO Jay Chaudhry highlighted Zscaler’s Zero Trust architecture as critical for securing high-speed AI workflows and emphasized strong enterprise demand for its cybersecurity solutions in the evolving AI landscape.