Zscaler (ZS) Operating Margin (2017 - 2026)
Zscaler (ZS) reported Operating Margin of 6.35% for Q1 2026, down 15.0% year-over-year from 7.47% in Q1 2025, and down 37.56% quarter-over-quarter from 4.61% in Q4 2025.
Zscaler (ZS) Operating Margin (2017 - 2026) Analysis & Trends
Zscaler (ZS) has 10 years of Operating Margin data on file, last reported at 6.35% in Q1 2026.
- Operating Margin for Q1 2026 came in at 6.35%, down 15.0% year-over-year; the trailing twelve-month figure through Jan 2026 was 4.86% (down 70.0% YoY), and the FY2025 annual result was 4.81%, up 80.0% from the prior year.
- Operating Margin eased to 6.35% in Q1 2026 per ZS's latest filing, from 4.61% in the prior quarter.
- Over five years, Operating Margin peaked at 0.54% in Q2 2024 and troughed at 32.84% in Q1 2022.
- A 5-year average of 11.86% and a median of 8.66% in 2024 frame the typical range for Operating Margin.
- The sharpest annual moves came in 2022 and 2023: Operating Margin plunged 534 bps in 2022, then jumped 1688 bps in 2023.
- A 5-year view of Operating Margin shows it stood at 19.43% in 2022, then soared by 52 bps to 9.27% in 2023, then soared by 47 bps to 4.88% in 2024, then advanced by 6 bps to 4.61% in 2025, then tumbled by 38 bps to 6.35% in 2026.
- Business Quant data shows ZS's Operating Margin at 6.35% in Q1 2026, 4.61% in Q4 2025, and 4.48% in Q3 2025.
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Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Operating Margin (Qtr) |
|---|---|---|---|---|---|
| 1 | Microsoft | 3,095.86 Bn | 3,017.59 Bn | 56.06 Bn | 46.33% |
| 2 | Alarum Technologies | 1,030.32 Bn | 1,016.16 Bn | 7.23 Mn | 6.91% |
| 3 | Oracle | 614.12 Bn | 575.54 Bn | 15.14 Bn | 31.79% |
| 4 | Palantir Technologies | 324.44 Bn | 316.52 Bn | 1.42 Bn | 46.18% |
| 5 | Palo Alto Networks | 189.07 Bn | 184.54 Bn | 1.91 Bn | 15.30% |
| 6 | CrowdStrike Holdings | 168.14 Bn | 165.09 Bn | 993.68 Mn | 1.06% |
| 7 | Fortinet | 106.89 Bn | 103.59 Bn | 1.49 Bn | 31.36% |
| 8 | Cloudflare | 88.20 Bn | 87.25 Bn | 455.60 Mn | -9.69% |
| 9 | Synopsys | 88.13 Bn | 88.01 Bn | 1.77 Bn | 8.43% |
| 10 | Zscaler | 20.81 Bn | 17.30 Bn | 624.49 Mn | -6.35% |
Historic Data
Download Data| Date | Value |
|---|---|
| Jan 31, 2026 | -6.35% |
| Oct 31, 2025 | -4.61% |
| Jul 31, 2025 | -4.48% |
| Apr 30, 2025 | -3.75% |
| Jan 31, 2025 | -6.20% |
| Oct 31, 2024 | -4.88% |
| Jul 31, 2024 | -4.55% |
| Apr 30, 2024 | -0.54% |
| Jan 31, 2024 | -8.66% |
| Oct 31, 2023 | -9.27% |
| Jul 31, 2023 | -9.79% |
| Apr 30, 2023 | -13.31% |
| Jan 31, 2023 | -16.83% |
| Oct 31, 2022 | -19.43% |
| Jul 31, 2022 | -25.95% |
| Apr 30, 2022 | -30.19% |
| Jan 31, 2022 | -32.84% |
| Oct 31, 2021 | -32.26% |
| Jul 31, 2021 | -34.20% |
| Apr 30, 2021 | -24.86% |