Zscaler FY2026 10-K: Revenue Up 25% to $3.35B, Net Loss Widens to $63M; 3% Workforce Cut Announced
ZS sits 56% above its 52-week low of $114.625 on elevated volume (2.4× avg).
Summary
Zscaler's FY2026 10-K confirms 25% revenue growth to $3.35B and ARR of $3.77B, but net loss widened to $63.2M amid heavy AI-focused acquisition spending and a subsequent 3% workforce reduction.
Key Events · Earnings and Guidance · ZS
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FY2026 Revenue Up 25% to $3.35B
Full-year revenue reached $3,352.5 million, up from $2,673.1 million in FY2025. ARR grew 25% to $3,771 million. Non-GAAP operating margin improved to 23% from 22%.
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Net Loss Widens to $63.2M
GAAP net loss increased to $63.2 million from $41.5 million, driven by a 34% rise in R&D expense to $903.4 million and $841.6 million in stock-based compensation.
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$918M Deployed on Four Acquisitions
Zscaler acquired Red Canary ($651.4M), Symmetry Systems ($152.9M), SquareX ($112.8M), and SPLXAI ($40.6M) during FY2026, adding $800.4 million in goodwill.
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3% Workforce Reduction Announced
On September 1, 2026, Zscaler committed to cutting approximately 3% of its workforce, incurring $30-33 million in charges, to reallocate resources toward AI and growth initiatives.
Analysis · ZS · Technology
The annual report confirms the strong top-line momentum previewed in today's 8-K — revenue grew 25% to $3.35 billion and ARR reached $3.77 billion — but the full financials also show the cost of that growth. Net loss widened to $63.2 million from $41.5 million, driven by a 34% jump in R&D spending and $918 million deployed across four acquisitions (Red Canary, SPLXAI, SquareX, Symmetry). The company also disclosed a subsequent 3% workforce reduction with $30-33 million in charges, signaling a shift toward AI-focused resource allocation. With $3.47 billion in cash and investments against $1.7 billion in convertible notes due 2028, liquidity is not a near-term concern, but the combination of heavy acquisition spend, rising stock-based compensation ($842 million), and restructuring charges shows management is prioritizing AI-driven expansion over near-term profitability.
How filings like this one have moved
In the 30 days to Sep 13, 2026, 29.5% of the 1672 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.22%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, ZS was trading at $179.20 on NASDAQ in the Technology sector, with a market capitalization of approximately $28.8B. The 52-week trading range was $114.63 to $336.99. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.