capital · May 17, 2026

Zscaler Reports Red Canary Acquisition Integration and Elevated Churn in Q2 FY2026 Earnings

Zscaler executives discussed Red Canary integration during the Q2 FY2026 earnings call on or around May 14, 2026. Red Canary was acquired primarily for technology and talent, with integration of teams into Zscaler units completed on February 1, 2026. Post-acquisition churn for the MDR business remains elevated compared to Zscaler's core operations. Zscaler reported Q2 net new ARR of $156 million, up 19% year-over-year, with total ARR reaching $3.4 billion, up 25% year-over-year, and excluding Red Canary contribution net new ARR was $139 million.