Zscaler (ZS) Operating Margin (2017 - 2026)
Zscaler (ZS) posted quarterly 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.
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Analysis
Zscaler (ZS) Operating Margin (2017 - 2026) Analysis & Trends
Zscaler (ZS) has reported Operating Margin for 10 consecutive years, with 6.35% the latest figure, recorded in Q1 2026.
- In Q1 2026, Operating Margin fell 15.0% year-over-year to 6.35%; the TTM figure through Jan 2026 stood at 4.86% (down 70.0% YoY), while the FY2025 annual figure was 4.81%, up 80.0% from the prior year.
- Operating Margin retreated to 6.35% in Q1 2026 per ZS's latest filing, from 4.61% in the prior quarter.
- Across five years, Operating Margin topped out at 0.54% in Q2 2024 and bottomed at 32.84% in Q1 2022.
- Historically, Operating Margin has averaged 11.86% across 5 years, with a median of 8.66% in 2024.
- Annual changes were most pronounced in 2022 — Operating Margin plunged 534 bps — and 2023, when it jumped 1688 bps.
- Zscaler's Operating Margin stood at 19.43% in 2022, then jumped by 52 bps to 9.27% in 2023, then jumped by 47 bps to 4.88% in 2024, then climbed by 6 bps to 4.61% in 2025, then plunged 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.
Peer Set
Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Operating Margin (Qtr) |
|---|---|---|---|---|---|
| 1 | Microsoft | 3,718.29 Bn | 3,585.54 Bn | 60.48 Bn | 45.11% |
| 2 | Oracle | 452.14 Bn | 420.24 Bn | - | 31.97% |
| 3 | Palantir Technologies | 418.25 Bn | 408.84 Bn | 1.64 Bn | 47.12% |
| 4 | Palo Alto Networks | 265.90 Bn | 262.79 Bn | 2.03 Bn | -6.10% |
| 5 | CrowdStrike Holdings | 217.15 Bn | 212.14 Bn | 1.10 Bn | -2.26% |
| 6 | Fortinet | 114.54 Bn | 110.47 Bn | 1.64 Bn | 33.66% |
| 7 | Cloudflare | 98.54 Bn | 94.37 Bn | 499.52 Mn | -29.55% |
| 8 | Synopsys | 75.44 Bn | 71.83 Bn | 1.80 Bn | 14.43% |
| 9 | Block | 49.56 Bn | 43.13 Bn | 3.17 Bn | 6.75% |
| 10 | Zscaler | 27.01 Bn | 23.50 Bn | 624.49 Mn | -6.35% |
Historic Data
Download Data
Historic 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% |