Zscaler

ZS · Nasdaq · Information Technology · Financials, fiscal 2017 to 2026

ZS · Last close · October 26, 2026

$260.45

Zscaler's revenue rose 25.4% to $3.4 billion in fiscal 2026. Its operating margin was −4.0%, up from −4.8% a year earlier. Free cash flow was $852 million, up 5.5%. The diluted share count rose 3.8%.

Zscaler Inc Latest fiscal year ended July 31, 2026 10-K filed September 3, 2026 · 0001713683-26-000157 Updated October 12, 2026

Revenue

$3.4B

25.4%

Operating margin

−4.0%

0.8 pts

Net income

−$63M

Free cash flow

$852M

5.5%

Return on equity

−2.9%

0.2 pts

Market cap

$41.7B

Oct 26 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

Zscaler lost money in fiscal 2026: a net loss of $63 million.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Zscaler yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Zscaler's 10-K and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Zscaler's cash from operations minus depreciation in fiscal 2026 (free cash flow before spending to grow: capital spending was 1.9 times depreciation, which holds its free cash flow down) of $981M, net cash of $1.8B at July 31, 2026 and 160 million diluted shares, from its filings. The scenarios are fitted to Zscaler: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 27.5% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Systems Software), plus 1 point for unsteady results (a loss in fiscal 2026); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2026: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions Cash and short-term investments minus debt and finance leases at July 31, 2026. Negative means net debt.

Diluted shares, millions Weighted-average diluted shares in fiscal 2026.

Your assumptions

Start from

Fitted to Zscaler's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 11% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $260.45
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Zscaler's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	1,731	2,100	2,410	3,572	3,474
Debt incl. finance leases	969	1,134	1,142	1,701	1,696
Net debt (negative means net cash)	−763	−966	−1,267	−1,872	−1,778
Net debt to EBITDA	—	—	—	—	−116.4x
Debt to equity	1.7x	1.6x	0.9x	0.9x	0.7x
Interest coverage	−5.8x	−35.9x	−9.2x	−13.5x	−11.3x
Current ratio	2.0x	1.9x	1.1x	2.0x	1.7x
Quick ratio	2.0x	1.9x	1.1x	2.0x	1.7x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Zscaler shares on the open market, and 7 insiders sold $22.4 million, $12.7 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 12, 2026	Adam GellerChief Product Officer	Sold plan	1,042	$235.95	$245,860	Form 4
Oct 9, 2026	Adam GellerChief Product Officer	Sold plan	23,958	$225.43	$5.4 million	Form 4
Sep 25, 2026	Kevin RubinChief Financial Officer	Sold plan	519	$197.28	$102,390	Form 4
Sep 21, 2026	Robert SchlossmanChief Legal Officer	Sold plan	5,394	$200.00	$1.1 million	Form 4
Sep 21, 2026	Adam GellerChief Product Officer	Sold plan	661	$200.00	$132,200	Form 4
Sep 17, 2026	Adam GellerChief Product Officer	Sold plan	4,584	$192.01	$880,174	Form 4
Sep 17, 2026	James A BeerDirector	Sold plan	177	$192.01	$33,986	Form 4
Sep 16, 2026	Kevin RubinChief Financial Officer	Sold	5,957	$192.76	$1.1 million	Form 4
Sep 16, 2026	Adam GellerChief Product Officer	Sold plan	5,578	$192.76	$1.1 million	Form 4
Sep 16, 2026	Michael J. RichCRO and President of WW Sales	Sold	4,108	$192.76	$791,858	Form 4
Sep 16, 2026	Jagtar Singh ChaudhryCEO & Chairman, Director, 10% owner	Sold	2,852	$192.76	$549,752	Form 4
Sep 16, 2026	Robert SchlossmanChief Legal Officer	Sold	2,325	$192.76	$448,167	Form 4

The latest 12 of 40 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY24	FY25	FY26
Net income is positive	Fail	Fail	Fail
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Fail	Pass
Current ratio rose	Fail	Pass	Fail
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Fail	Fail
Revenue rose relative to assets	Pass	Fail	Fail
F-score	6 of 9	4 of 9	3 of 9
Accruals ratio	−20.1%	−18.2%	−16.7%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Zscaler side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Zscaler	FY26	25.4%	−4.0%	25.4%	—	−116.4x	3
Nutanix	FY26	12.4%	9.6%	29.5%	—	−2.9x	—	Compare
Check Point	FY25	6.2%	30.5%	43.0%	—	−2.8x	7	Compare
CrowdStrike	FY26	21.7%	−6.1%	27.2%	—	—	4	Compare
Gen Digital	FY26	27.1%	42.4%	30.5%	13.7%	3.0x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	126	190	303	431	673	1,091	1,617	2,168	2,673	3,352
Revenue growth	56.5%	51.3%	59.2%	42.4%	56.1%	62.1%	48.2%	34.1%	23.3%	25.4%
Gross profit	98	152	243	336	523	849	1,254	1,691	2,055	2,575
Research and development	34	39	62	98	175	289	351	500	672	903
Operating income	−35	−35	−35	−114	−208	−327	−235	−122	−128	−133
Net income	−36	−34	−29	−115	−262	−390	−202	−58	−42	−63
Diluted EPS (US$)	−1.54	−0.63	−0.23	−0.89	−1.93	−2.77	−1.40	−0.39	−0.27	−0.39
Diluted shares (millions)	29	64	124	129	136	141	145	150	154	160
Cash flow
Cash from operations	−6	17	58	79	202	322	462	780	972	1,130
Capital expenditure	8	13	26	43	48	69	97	145	164	277
Free cash flow	−14	4	33	36	154	253	365	635	808	852
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	4	0	0	0	0	0	0	0	0
Acquisitions	0	0	11	40	40	25	16	375	1	918
Stock-based compensation	10	11	46	121	258	410	445	528	661	822
Balance sheet at fiscal year end
Cash and short-term investments	88	298	365	1,371	1,503	1,731	2,100	2,410	3,572	3,474
Debt incl. finance leases	—	—	0	862	914	969	1,134	1,142	1,701	1,696
Total assets	183	448	604	1,834	2,258	2,833	3,608	4,705	6,420	7,867
Total liabilities	133	208	296	1,349	1,729	2,259	2,883	3,431	4,621	5,268
Shareholders' equity	−151	240	309	485	529	573	725	1,274	1,799	2,598
Margins and ratios
Gross margin	78.2%	80.1%	80.3%	77.8%	77.7%	77.8%	77.6%	78.0%	76.9%	76.8%
Operating margin	−27.9%	−18.2%	−11.7%	−26.4%	−30.9%	−30.0%	−14.5%	−5.6%	−4.8%	−4.0%
Net margin	−28.2%	−17.7%	−9.5%	−26.7%	−38.9%	−35.8%	−12.5%	−2.7%	−1.6%	−1.9%
Free cash flow margin	−11.0%	2.1%	10.7%	8.4%	22.9%	23.2%	22.6%	29.3%	30.2%	25.4%
Return on capital	—	—	—	—	—	—	—	—	—	—
Return on equity	—	−75.5%	−10.4%	−29.0%	−51.7%	−70.8%	−31.2%	−5.8%	−2.7%	−2.9%
Return on assets	—	−10.7%	−5.5%	−9.4%	−12.8%	−15.3%	−6.3%	−1.4%	−0.8%	−0.9%
Net debt to EBITDA	—	—	—	—	—	—	—	—	—	−116.4x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Zscaler's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Zscaler.