Zscaler, Inc.
ZS Technology Software Infrastructure
Zscaler, Inc.’s revenue for fiscal 2026 (year ended July 2026) was $3.4 billion, up 25.4% from fiscal 2025. Revenue growth for ten consecutive years, operating cash flow growth for ten.
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Zscaler, Inc. (ZS) Beneish M-score
Zscaler, Inc.'s Beneish M-score for fiscal 2026 is −2.70; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2026 | −2.70 | 0.28 |
| FY2025 | −2.98 | (0.19) |
| FY2024 | −2.79 | 0.11 |
| FY2023 | −2.90 | 0.21 |
| FY2022 | −3.11 | (0.39) |
| FY2021 | −2.72 | 0.03 |
| FY2020 | −2.75 | (0.19) |
| FY2019 | −2.56 | (0.01) |
| FY2018 | −2.55 | 0.10 |
| FY2017 | −2.65 | — |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.92 | — | 0.85 | |
| Gross margin index | 1.00 | — | 0.53 | |
| Asset quality index | 1.73 | — | 0.70 | |
| Sales growth index | 1.25 | — | 1.12 | |
| Depreciation index | 1.00 | — | 0.12 | |
| SG&A index | 0.95 | — | −0.16 | |
| Total accruals to total assets | (0.15) | — | −0.71 | |
| Leverage index | 0.92 | — | −0.30 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.70 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| RBRK Rubrik, Inc. compare | −3.2× |
| MDB MongoDB, Inc. compare | −2.9× |
| FFIV F5, Inc. compare | −2.8× |
| NTAP NetApp, Inc. compare | −2.7× |
| ZS Zscaler, Inc. | −2.7× |
| OKTA Okta, Inc. compare | −2.7× |
| IOT Samsara Inc. compare | −2.6× |
| CPAY Corpay, Inc. compare | −2.4× |
| VRSN VeriSign, Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI