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Zscaler, Inc. (ZS) Operating Margin: -4.81%

Is Zscaler, Inc.’s operating margin high or low?

Zscaler, Inc.'s operating margin of -4.81% is 73% above its 5-year average of -17.77%, near the high end of its 5-year range (-30.81%–-4.81%).

The operating margin for Zscaler, Inc. (ZS) is -4.81% as of Wednesday, June 10, 2026. It is above its 12-month average by 8.56% (-5.26%).

ZS Operating Margin Chart

ZS Operating Margin
-4.81%+15.76% 1Y
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ZS Average Operating Margin Chart

ZS Current vs Average Operating Margin Chart

ZS Operating Margin Metrics

OPERATING MARGIN

-4.81%

OPERATING MARGIN AVG TTM

-5.26%

OPERATING MARGIN AVG 3Y

-13.46%

OPERATING MARGIN AVG 5Y

-17.77%

OPERATING MARGIN AVG 10Y

-19.31%

OPERATING MARGIN AVG 15Y

-19.31%

OPERATING MARGIN AVG 20Y

-19.31%

CURRENT VS TTM AVG

+8.56%

CURRENT VS 3Y AVG

+64.27%

CURRENT VS 5Y AVG

+72.94%

CURRENT VS 10Y AVG

+75.09%

CURRENT VS 15Y AVG

+75.09%

CURRENT VS 20Y AVG

+75.09%

ZS Competitors' Operating Margin

NAMEMARKET CAPOPERATING MARGINTTM3Y5Y
Zscaler, Inc. (ZS)-4.81%-5.26%-13.46%-17.77%
Akamai Technologies, Inc. (AKAM)$20.04B14.93%14.14%15.93%17.82%
Fidelity National Information Services, Inc. (FIS)$20.66B16.47%16.67%18.42%16.86%
Okta, Inc. (OKTA)$19.93B5.24%1.42%-15.92%-24.53%
HP Inc. (HPQ)$22.81B6.55%6.84%6.84%6.98%
PTC Inc. (PTC)$15.82B35.86%30.72%26.61%23.66%
Cognizant Technology Solutions Corporation (CTSH)$25.09B16.72%15.68%15.13%14.75%
Atlassian Corporation (TEAM)$25.11B-2.50%-2.59%-3.11%-1.39%
VeriSign, Inc. (VRSN)$25.83B67.67%67.81%67.20%66.54%
Splunk Inc. (SPLK)$26.44B8.46%1.01%-18.97%-17.00%

Operating Efficiency

Gross Margin

76.9%

Operating Margin

-4.8%

Zscaler, Inc. Operating Margin Formula & Definition

Operating Margin = Operating Income / Revenue

Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Zscaler, Inc. Operating Margin FAQ

What is the operating margin for Zscaler, Inc. (ZS)?
The operating margin for ZS stock is -4.81%.
Is Zscaler, Inc.'s operating margin high or low?
Zscaler, Inc.'s operating margin of -4.81% is 73% above its 5-year average of -17.77%, near the high end of its 5-year range (-30.81%–-4.81%).
What is the TTM average operating margin for Zscaler, Inc. (ZS)?
The TTM average operating margin for ZS stock is -5.26%.
What is the 3Y average operating margin for Zscaler, Inc. (ZS)?
The 3Y average operating margin for ZS stock is -13.46%.
What is the 5Y average operating margin for Zscaler, Inc. (ZS)?
The 5Y average operating margin for ZS stock is -17.77%.
What is the 10Y average operating margin for Zscaler, Inc. (ZS)?
The 10Y average operating margin for ZS stock is -19.31%.
What is the 15Y average operating margin for Zscaler, Inc. (ZS)?
The 15Y average operating margin for ZS stock is -19.31%.
What is the 20Y average operating margin for Zscaler, Inc. (ZS)?
The 20Y average operating margin for ZS stock is -19.31%.

Zscaler, Inc. Operating Margin History

DATEOPERATING MARGIN
2025-07-31-4.81%
2024-07-31-5.71%
2023-07-31-13.32%
2022-07-31-30.01%
2021-07-31-30.81%
2020-07-31-21.99%
2019-07-31-7.34%
2018-07-31-13.98%
2017-07-31-27.90%
2016-07-31-33.42%
2015-07-31-23.12%

About Zscaler, Inc.

Globally recognized, Zscaler, Inc. functions as a leading provider of cloud-based security solutions. Its core offerings include Zscaler Internet Access (ZIA), which ensures secure connectivity for a diverse range of entities – including users, servers, operational technology (OT), and IoT devices – when accessing external resources like software-as-a-service (SaaS) applications and general internet destinations. Complementing this, the Zscaler Private Access (ZPA) solution facilitates secure entry to internal applications residing in private or public clouds and traditional data centers. Zscaler also delivers Zscaler Digital Experience (ZDX), a tool that assesses the complete user journey across various business applications. ZDX then generates a clear, digestible digital experience score for individual users, specific applications, and different locations within an organization. Furthermore, the company's portfolio extends to advanced workload segmentation solutions. This category includes Zscaler Cloud Security Posture Management (CSPM), designed to identify and correct application misconfigurations across SaaS, IaaS, and PaaS environments, thereby minimizing risk and upholding compliance standards. Another key offering is Zscaler Cloud Workload Segmentation, specifically engineered to fortify application-to-application communication within public clouds and data centers. Its objective is to thwart lateral threat propagation, safeguard applications from compromise, and ultimately mitigate the potential for data breaches. The underlying platform is built upon integral components such as the Zscaler Central Authority, Zscaler Enforcement Nodes, and Zscaler Log Servers. Serving a diverse global clientele, Zscaler caters to numerous sectors including aviation and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, as well as technology and telecommunications. Founded in 2007, the company initially operated as SafeChannel, Inc., before rebranding to Zscaler, Inc. in August 2008. Its corporate headquarters are located in San Jose, California.

San Jose, CA
7,348 employees
Technology / Software - Infrastructure
Sector
Technology
Industry
Software - Infrastructure
CEO
Jagtar Singh Chaudhry