Slide 1: Fiscal Q1 2026 Earnings Call
Fiscal Q1 2026 Earnings Call November 2025
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements Unless otherwise noted, all numbers presented will be on an adjusted, non-GAAP basis. Reconciliation of GAAP to non-GAAP financial measures is in the appendix of this presentation. This presentation has been prepared by Zscaler, Inc. (“Zscaler”) for information
Slide 3: Strong start to FY26
Strong start to FY26 Q1 Guidance Q1 Results Q1 Results vs. Guidance $772M - $774M $788M Revenue Exceeded ~23% y/y ~26% y/y Gross Margin ~80% ~80% Achieved $166M - $168M $172M Operating Profit Exceeded ~22% margin ~22% margin $0.96 EPS $0.85 - $0.86 Exceeded 25% y/y All numbers presented on an adjust
Slide 4: Key business metrics sustain growth momentum
Key business metrics sustain growth momentum Growth at scale Customers increasing Customer centric innovations with strong profitability commitments with Zscaler are resonating well Revenue Growth Y/Y Annual Recurring Revenue2 AI Security ARR ~26% $3.2B+ $400M+ Strong growth across all geos ARR grow
Slide 5: Operating at Rule-of-78 for Q1'26
Operating at Rule-of-78 for Q1’26 In a rarefied category among large publicly traded SaaS companies Rule-of-78 for Q1’26 78% 52% 26% Revenue growth % FCF Margin % Rule of 40 All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GA
Slide 6: ARR
>50M $3.2B+ Total Users secured on our platform 20+ Annual Recurring Revenue (ARR) 1 Petabytes Traffic flowing through Zero Trust Exchange Cloud every day One of the five enterprise SaaS companies above $3B ARR+ still delivering 25%+ growth 500B+ Daily transactions >50x number of daily google search
Slide 7: Comprehensive Platform Solutions
Comprehensive Platform Solutions Securing over 90 billion AI/ML transactions per month AI-Security Zero Trust Data Security Security for AI Agentic Everywhere Everywhere Applications Operations Zero Trust Users Discover, Classify, AI Asset Discovery & Agentic Assess Posture (DSPM) Posture Management
Slide 8: Three Pillars of Growth
Three Pillars of Growth ~$450M $400M+ Zero Trust Everywhere 1 Data Security ARR AI-Security ARR Everywhere Customer need to buy all ▪ Security for AI apps three of: ▪ Cyber Isolation ▪ Endpoint DLP ▪ Secure AI Apps ▪ Zero Trust Users (ZIA/ZPA) ▪ Inline DLP ▪ E-mail DLP • Zscaler AI Guard ▪ Zero Trus
Slide 9: Security for AI apps – AI Asset Discovery and Posture Management
Security for AI apps – AI Asset Discovery and Posture Management AI Asset Discovery and Posture Management AI Inventory AI Data Security 1 Discover AI Models, 3 Map AI overreach into Agents and Services data and close risks AI Governance Responsible AI 2 Control AI Supply Chain AI Data 4 Prioritize
Slide 10: Security for AI apps – Red Teaming
Security for AI apps – Red Teaming Support broad range of Variety of Red Library of simulated AI Dev Environments Teaming tests attacks Security 5,000+ attacks Context Context Leakage Leakage Data Data Exfiltration Exfiltration Jailbreak RAG Poisoning RAG Poisoning Jailbreak Jailbreak or Safety Data
Slide 11: Security for AI apps – AI Guardrails
Security for AI apps – AI Guardrails Zscaler AI Guard LLMs in LLMs in ✓ Visibility Public Cloud Data centers ✓ Access Control ✓ Intent-based Guardrails ✓ Sensitive Data Protection ✓ Auditing/Logging AI Guard Public GenAI Internet facing Internal AI apps Zscaler AI Guard applications AI chatbot and c
Slide 12: Rapid expansion in our AI-Security portfolio
Rapid expansion in our AI-Security portfolio Exceeded our FY26 ARR target of $400M 3 quarters ahead of schedule Agentic SecOps Agentic IT Ops AI-Security ARR Deal Wins, Q1’26 >$500M ● Fortune 500 Financial Services 80% year-over-year growth in LTM ● Global 2000 Healthcare Equipment ZDX-Advanced-Plus
Slide 13: Growing adoption of Zero Trust Everywhere
Growing adoption of Zero Trust Everywhere Exceeded Zero Trust Everywhere (ZTEv) goal 1 Zero-Trust Everywhere Flywheel Effect 3 quarters ahead of schedule on potential ARR 450+ FY26 ZTEv customers2 target: 390 Zero Trust 350+ Everywhere 210+ ARR 130+ Data AI Security Security Q3'24 Q4'24 Q1'25 Q2'25
Slide 14: Zero Trust Cloud securing workloads with growing AI adoption
Zero Trust Cloud securing workloads with growing AI adoption Zero Trust Cloud gateway Zscaler Cloud Gateway reduces the deployment 8-Figure TCV deal time to < 10 minutes Fortune 500 Healthcare • Adopted our Zero Trust Cloud solution (along with ZDX Advanced Plus, Data Security modules, etc.) Interne
Slide 15: Zero Trust Branch driving Zero Trust transformation for branches
Zero Trust Branch driving Zero Trust transformation for branches 7-Figure ACV deal Large opportunity with Global 2000 Manufacturing millions of branches yet to transform to Zero Trust • ARR more than tripled as customer became Zero Trust Everywhere this quarter by purchasing device segmentation. acr
Slide 16: Data Security ~$450M ARR
Data Security driving consolidation of multiple point products on our platform Zscaler Data Security Modules Cyber Isolation DP Isolation Inline DLP Endpoint DLP SaaS Security Email DLP Classification & Encryption DSPM Data Security Data Security deal ~$450M ARR Large Healthcare Provider New, 7-figu
Slide 17: Strong traction in Z-Flex
Strong traction in Z-Flex Z-Flex TCV Bookings ($M) Z-flex Deal >$175M Fortune 500 services provider Upsell, 7-figure TCV deal 70%+ Q/Q growth • Customer doubled their ARR • Expansion of 9 modules under Flex $100M+ Z-flex Deal $65M+ Large Aerospace player Upsell, 8-figure TCV deal • Multi-year commit
Slide 18: Growing across all geographies
Growing across all geographies Revenue mix by geographies $788M $719M $678M 15% $648M $628M 16% $593M 16% $553M 16% $525M 16% 27% 15% 15% 29% 15% 30% 30% 30% 30% 31% 31% 58% 54% 55% 55% 54% 54% 54% 54% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Americas EMEA APJ 2025 Zscaler, Inc. All rights re
Slide 19: Sustained Large customer momentum
Sustained Large customer momentum $100K+ ARR Customers2 $1M+ ARR Customers2 18% CAGR 3,754 22% CAGR 664 698 >45% 3,494 619 633 Fortune 500 Customers1 3,357 584 3,281 564 3,154 3,087 522 2,919 2,817 ~40% 491 Global 2000 Customers1 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'24 Q3'24 Q4'24 Q1'2
Slide 20: Improving operating efficiency, profitability & cash flow
Improving operating efficiency, profitability & cash flow (in $ M) Gross Profit & Margin Operating Profit & Margin Free Cash Flow & Margin 81% 81% 80% 22% 52% 21% 18% 45% 46% $630 $172 $413 $506 $134 $401 $292 $90 $225 Q1 '24 Q1 '25 Q1 '26 Q1 '24 Q1 '25 Q1 '26 Q1 '24 Q1'25 Q1 '26 Gross profit Gross
Slide 21: Delivering ARR growth at scale
Delivering ARR growth at scale Annual Recurring Revenue (ARR1), $M $3,204 $3,015 25% CAGR $2,817 $2,683 $2,553 $2,474 $2,304 $2,177 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 1. Zscaler Annual Recurring Revenue (ARR) refers to the next 12 months of revenue from subscription contracts as of the
Slide 22: Increased FY26 guidance
Increased FY26 guidance Q2’26 Guidance FY26 Guidance $797M - $799M $3,282M - $3,301M Revenue ~23% y/y 22.8% y/y – 23.5% y/y 1 $3,698M - $3,718M ARR 22.7% y/y - 23.3% y/y Gross Margin ~80% $172M - $174M $732M - $740M Operating Profit ~22% margin ~22% margin Net Other Income $19M Taxes 21% tax rate 21
Slide 23: Heading strongly into FY26
Heading strongly into FY26 Total ARR surpassed $3.2B, making us one of the only 5 enterprises SaaS companies over $3B in ARR still 1 delivering 25%+ growth, driven by acceleration in ARR from three growth vectors AI-Security solutions, including “Security of AI Apps” and “Agentic Operations”, surpas
Slide 24: Financial Appendix
Financial Appendix
Slide 25: Explanation of Non-GAAP Financial Measures
Explanation of Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe that the presentation of non-GAAP financial information provides important supplemental information to man
Slide 26: Appendix A: GAAP to Non-GAAP Reconciliation
Appendix A: GAAP to Non-GAAP Reconciliation (in thousands, except percentages) Q1 26 Q1 25 Q1 24 Revenue $ 788,112 $ 627,955 $ 496,703 Non-GAAP Gross Profit and Non-GAAP Gross Margin GAAP gross profit $ 603,359 $ 486,493 $ 385,309 Add: Stock-based compensation expense and related payroll taxes 19,98
Slide 27: Appendix A: GAAP to Non-GAAP Reconciliation (cont.)
Appendix A: GAAP to Non-GAAP Reconciliation (cont.) (in thousands, except per share amounts) Q1 26 Q1 25 Q1 24 Non-GAAP Net Income per Share, Diluted GAAP net loss $ (11,615) $ (12,051) $ (33,483) Add: GAAP provision for income taxes 3,241 7,637 8,997 GAAP loss before income taxes (8,374) (4,414) (2
Slide 28: Appendix A: GAAP to Non-GAAP Reconciliation (cont.)
Appendix A: GAAP to Non-GAAP Reconciliation (cont.) (in thousands, except percentages) Q1 26 Q1 25 Q1 24 Free Cash Flow Net cash provided by operating activities $ 448,280 $ 331,335 $ 260,806 Less: Purchases of property, equipment and other assets (17,311) (17,025) (28,659) Capitalized internal-use