Companies /Technology

Zoom Video Communications Inc - Class A

NASDAQ: ZM Software - Application
$95.36
▼ $0.21 (−0.22%) today
Markets closed · 5:24pm ET

Q1 2026 Earnings

Reported May 21, 2025, 4:05pm ET · SEC source
$1.43
Beat +9.54%
EPS · est. $1.31
$1.2B
Beat +0.74%
Revenue · est. $1.2B
−10.8%
Trailing market
ZM vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0May 21May 22report 4:05pm ETearnings+0.1%−3.3%
−6%−3%0May 21May 22earnings+0.1%−3.3%
ZM −3.3%S&P 500 +0.1%
−6%−3%0May 21May 22report 4:05pm ETearnings+0.3%−3.3%
−6%−3%0May 21May 22earnings+0.3%−3.3%
ZM −3.3%NASDAQ +0.3%
−3%0May 20May 29report 4:05pm ETearnings+1.1%−3.3%
−3%0May 20May 29earnings+1.1%−3.3%
ZM −3.3%S&P 500 +1.1%
−3%0+3%May 20May 29report 4:05pm ETearnings+1.2%−3.3%
−3%0+3%May 20May 29earnings+1.2%−3.3%
ZM −3.3%NASDAQ +1.2%
−0.24%
Day of report
−3.40%
Next session
−1.00%
One week
−6.64%
30 days

S&P 500 over the same 30 days: +4.12%.

Did ZM Beat Earnings? Q1 2026 Results

Zoom Video Communications posted a stronger-than-expected first quarter for fiscal 2026, with non-GAAP earnings of $1.43 per diluted share clearing the $1.31 consensus estimate by 9.54% and revenue of $1.17 billion edging past forecasts by 0.74% on 2.9% year-over-year growth. The headline driver behind the profitability beat was a meaningful expansion in Enterprise, where revenue climbed 5.9% year over year to $704.70 million and the customer count contributing more than $100,000 in trailing 12-month revenue grew 8.0% to 4,192, even as the Online segment continued to face modest headwinds with a 1.2% revenue decline. GAAP operating margin widened to 20.6% from 17.8% a year ago, reflecting disciplined cost controls that pushed total operating expenses slightly lower to $654.72 million. Free cash flow came in at $463.35 million, and the company repurchased approximately 5.6 million shares for $418.02 million in the quarter. Looking ahead, Zoom guided full-year fiscal 2026 revenue of $4.80 billion to $4.81 billion and non-GAAP diluted EPS of $5.56 to $5.59.

Key Takeaways
  • Enterprise revenue growth of 5.9% YoY driven by new customer acquisition
  • 8.0% YoY growth in customers contributing more than $100,000 in trailing 12-month revenue (4,192 customers)
  • Online average monthly churn improved 40 bps YoY to 2.8%
  • Strong operational discipline with total operating expenses declining YoY
  • GAAP operating margin expanded to 20.6% from 17.8% a year ago

“We delivered another solid quarter, exceeding guidance in both revenue and profitability — a testament to the strength of our platform and AI-first innovation.”

Zoom CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2026, Zoom expects total revenue of $1.195–$1.200 billion (constant currency $1.196–$1.201 billion), non-GAAP operating income of $460.0–$465.0 million, and non-GAAP diluted EPS of $1.36–$1.37 on approximately 310 million weighted average shares. For full fiscal year 2026, the company expects total revenue of $4.800–$4.810 billion (constant currency $4.808–$4.818 billion), non-GAAP operating income of $1.865–$1.875 billion, non-GAAP diluted EPS of $5.56–$5.59 on approximately 312 million weighted average shares, and free cash flow of $1.680–$1.720 billion. EPS and share count guidance excludes the impact of $1.2 billion in authorized share repurchase remaining.

ZM YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$400.0M$800.0M$1.2B$1.1B$1.2BRevenue$867.9M$896.3MGross Profit$203.0M$241.6MOperating Income$216.3M$254.6MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

ZM Revenue by Segment

Enterprise$704.7M+5.9%
Online$470.0M−1.2%

Figures from SEC filings and company reports. Not investment advice.