Zscaler (ZS) Reports Record FQ2 2026 Revenue Driven by Massive Enterprise Adoption

Zscaler Inc. (NASDAQ:ZS) is 1 of the stocks with explosive maturation potential. On February 26, Zscaler reported FQ2 2026 fiscal results, with gross reaching $816 million, a 26% year-over-year summation that exceeded marketplace expectations. The company’s ARR grew 25% to $3.4 billion, driven by momentum successful large-scale endeavor deals. Notably, the fig of customers contributing implicit $1 cardinal successful ARR roseate 18% year-over-year, portion the Americas portion remained the superior maturation engine, accounting for 57% of full revenue.

The institution is heavy positioning itself arsenic a person successful the AI information space, having processed astir 1 trillion AI transactions successful 2025. CEO Jay Chaudhry highlighted the motorboat of ‘AI Protect,’ which is simply a solution designed to negociate shadiness AI and forestall information leaks oregon prompt-injection attacks. Zscaler is besides shifting its concern exemplary toward metered, non-seat-based usage, which present accounts for implicit a 4th of caller yearly declaration value.

This displacement is supported by the Z-Flex program, which allows ample enterprises to swap oregon activate information modules without caller procurement cycles, generating implicit $290 cardinal successful declaration worth this 4th alone. Strategic acquisitions proceed to grow Zscaler Inc.’s (NASDAQ:ZS) platform, including the caller acquisition of SquareX to unafraid unmanaged devices via browser extensions and the integration of Red Canary to enactment agentic information operations.

Zscaler Inc. (NASDAQ:ZS) operates arsenic a unreality information institution worldwide. The institution offers cyberthreat extortion products, including Zscaler Internet Access, Zscaler Private Access solution, Zero Trust Firewall, Cloud Sandbox, and Zero Trust Browser.

While we admit the imaginable of ZS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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