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ZS Profit Margin

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As of Q2'26 (2026-01-31), ZS reported a gross margin of 76.6%, an operating margin of -6.3%, and a net profit margin of -4.2%. While the gross margin remains robust, both operating and net profit margins are negative at the latest data point, indicating ongoing challenges in achieving profitability. From Q3'23 to Q2'26, the gross margin has stayed consistently high, fluctuating between 76% and 78%, reflecting strong cost control over direct expenses. The operating margin improved significantly from -13.3% in Q3'23 to near breakeven in Q3'24, but then trended downward again, ending at -6.3%. Net profit margin followed a similar pattern, briefly turning positive in Q3'24 (3.5%) before reverting to negative territory. Overall, while ZS demonstrates strong gross profitability, sustained negative operating and net margins suggest that higher operating costs continue to pressure overall profitability despite some periods of improvement.