5 Insightful Analyst Questions From Zscaler’s Q1 Earnings Call

Zscaler’s first quarter results for 2026 were met with a significant negative market reaction, despite the company surpassing Wall Street’s revenue and non-GAAP profit expectations. Management attributed quarterly momentum to robust adoption of its Zero Trust SASE platform, expanded usage in the public sector, and strong performance in the Americas. CEO Jagtar Singh Chaudhry highlighted the critical role of Zscaler’s security architecture as organizations accelerate AI adoption, noting, “AI is changing the nature of cybersecurity in real time.” However, the departure of two senior sales leaders and uncertainty around new customer growth contributed to investor concerns.

Is now the time to buy ZS? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Zscaler’s Q1 Earnings Call

• Brad Zelnick (Deutsche Bank) asked about the impact of sales leadership turnover. CEO Jagtar Singh Chaudhry said these were senior departures and replacements are underway, while CFO Kevin Rubin explained the guidance reflects potential short-term disruption.
• Saket Kalia (Barclays) requested clarity on underlying business trends excluding a large federal deal. Rubin responded that the deal included a sizable renewal, and overall performance was strong, with nothing unusual outside the large contract.
• Joshua Tilton (Wolfe Research) questioned the flat outlook for organic net new ARR in the coming year. Rubin said upsells remain strong, but new logo growth is being approached cautiously; Chaudhry highlighted a large untapped customer base as an ongoing opportunity.
• Gregg Moskowitz (Mizuho) asked about slower growth in Europe and competitive dynamics. Chaudhry acknowledged the need to improve execution in EMEA and expects future improvement, while noting competition remains consistent globally.
• Gabriela Borges (Goldman Sachs) pressed for details on tempered new logo growth. Rubin said the outlook is prudent given current pipeline trends, with new logo acquisition remaining a strategic focus and further investments planned.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be focused on (1) the pace of AI Protect and Zero Trust branch adoption across large enterprises, (2) stabilization and productivity gains within the sales organization following leadership changes, and (3) early signs of customer uptake for integrated Red Canary and Symmetry Systems solutions. Progress on new logo acquisition and expansion via channel partners will also be key metrics to watch.

Zscaler currently trades at $154.09, down from $184.60 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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