Zoom Video Communications Inc - Class A
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did ZM Beat Earnings? Q3 2026 Results
Zoom delivered a clean beat across the board in its third quarter of fiscal year 2026, reporting non-GAAP earnings of $1.52 per diluted share against a consensus estimate of $1.44, a 5.76% beat, while revenue of $1.23 billion edged past expectations by 1.35% and grew 4.4% year over year. The headline driver behind the quarter's strength was the accelerating traction of Zoom's AI-first strategy, with CEO Eric Yuan pointing to the launch of AI Companion 3.0 and broad AI adoption across major enterprise deals as catalysts for one of the company's strongest Customer Experience quarters on record. Enterprise revenue, up 6.1% year over year to $741.40 million, led the top-line expansion, while profitability metrics impressed, with GAAP operating margin expanding to 25.2% from 15.5% a year prior and free cash flow reaching $614.32 million. Analysts have noted the quarter paints a positive picture of Zoom's strategic direction, and management's Q4 guidance of $1.23 to $1.24 billion in revenue, with full-year non-GAAP EPS expected between $5.95 and $5.97, suggests confidence in sustained momentum.
- Enterprise revenue growth of 6.1% year over year
- AI Companion adoption growing meaningfully
- Strong CX quarter with broad AI adoption across major deals
- Number of customers contributing more than $100,000 in trailing 12-month revenue up 9.2% YoY
- Lower stock-based compensation expense reducing dilution
- Operating cash flow up 30.2% year over year
“Zoom is continuing to build on our vision of an AI-first platform that helps people connect and collaborate more seamlessly. This quarter we announced AI Companion 3.0, and we're thrilled to see AI Companion adoption grow meaningfully. We're also seeing strong momentum with Custom AI Companion and our AI-first Customer Experience suite, which helped make this one of our best CX quarters, with broad AI adoption across major deals. Our disciplined approach is fueling top-line growth, stellar profitability, and lower dilution helping us turn AI innovation into real, lasting value for customers and shareholders.”
Zoom CEO, on the earnings call
Forward Guidance & Outlook
For Q4 FY2026, Zoom expects total revenue of $1.230–$1.235 billion, constant currency revenue of $1.224–$1.229 billion, non-GAAP operating income of $477.0–$482.0 million, and non-GAAP diluted EPS of $1.48–$1.49 on approximately 305 million weighted average shares. For full fiscal year 2026, Zoom expects total revenue of $4.852–$4.857 billion, constant currency revenue of $4.844–$4.849 billion, non-GAAP operating income of $1.955–$1.960 billion, non-GAAP diluted EPS of $5.95–$5.97 on approximately 308 million weighted average shares, and free cash flow of $1.860–$1.880 billion.
ZM YoY Financials
ZM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.