Companies

Zoom Video Communications Inc - Class A

NASDAQ: ZM

Q1 2027 Earnings

Reported May 21, 2026, 4:06pm ET · SEC source
$1.55
Beat +9.47%
EPS · est. $1.42
$1.2B
Beat +1.21%
Revenue · est. $1.2B
−20.0%
Trailing market
ZM vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%May 21May 22report 4:06pm ETearnings+0.1%+1.5%
−5%0+5%May 21May 22earnings+0.1%+1.5%
ZM +1.5%S&P 500 +0.1%
−5%0+5%May 21May 22report 4:06pm ETearnings+0.1%+1.5%
−5%0+5%May 21May 22earnings+0.1%+1.5%
ZM +1.5%NASDAQ +0.1%
−8%−4%0+4%May 20May 29report 4:06pm ETearnings+1.7%−2.7%
−8%−4%0+4%May 20May 29earnings+1.7%−2.7%
ZM −2.7%S&P 500 +1.7%
−8%−4%0+4%May 20May 29report 4:06pm ETearnings+3.2%−2.7%
−8%−4%0+4%May 20May 29earnings+3.2%−2.7%
ZM −2.7%NASDAQ +3.2%
+9.19%
Day of report
−5.25%
Next session
+5.66%
One week
−21.54%
30 days

S&P 500 over the same 30 days: −1.52%.

Did ZM Beat Earnings? Q1 2027 Results

Zoom Communications, Inc. delivered a strong first-quarter fiscal 2027 report, posting non-GAAP earnings of $1.55 per diluted share and beating the $1.42 consensus estimate by 9.47%, marking the fourth consecutive quarter the company has topped EPS expectations. Revenue climbed 5.5% year over year to $1.24 billion, ahead of the $1.22 billion consensus by 1.21%, as the company's AI-first strategy provided a meaningful lift; AI Companion paid users grew 184% year over year, and enterprise revenue of $755.70 million grew 7.2%, reflecting deepening traction with larger customers. Profitability also improved materially, with GAAP operating margin expanding 450 basis points to 25.1% and free cash flow reaching $500.50 million, a 40.4% margin. The company raised its full-year fiscal 2027 guidance to revenue of $5.08 to $5.09 billion and non-GAAP EPS of $5.96 to $6.00, while also announcing an incremental $1.00 billion share repurchase authorization alongside $625.00 million remaining under its prior program, signaling continued confidence in its cash generation outlook.

Key Takeaways
  • Enterprise revenue grew 7.2% YoY, driven by customer acquisition and upsells
  • 4,534 customers contributing more than $100,000 in trailing 12-month revenue, up 8.2% YoY
  • Trailing 12-month net dollar expansion rate for Enterprise improved to 99% from 98%
  • GAAP operating margin expanded 450 bps YoY to 25.1%
  • Non-GAAP operating margin expanded 130 bps YoY to 41.1%
  • Gains on strategic investments of $152.3 million boosted GAAP net income
  • Zoom Customer Experience continued accelerating high double-digit growth

“We saw continued momentum in the first quarter, with revenue up 5.5% year over year, exceeding the high end of our guidance.”

Zoom CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2027, Zoom guided total revenue of $1.265–$1.270 billion, non-GAAP operating income of $508–$513 million, and non-GAAP diluted EPS of $1.45–$1.47 on approximately 304 million weighted average shares. For the full fiscal year 2027, the company guided total revenue of $5.080–$5.090 billion, non-GAAP operating income of $2.065–$2.075 billion, non-GAAP diluted EPS of $5.96–$6.00, and free cash flow of $1.700–$1.740 billion. The EPS and share count figures do not include the impact from the newly expanded share repurchase authorization.

ZM YoY Financials

Q1 2027 vs Q1 2026 · SEC filings Q1 2026 Q1 2027
$0$400.0M$800.0M$1.2B$1.2B$1.2BRevenue$896.3M$964.7MGross Profit$241.6M$310.5MOperating Income$254.6M$425.7MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

ZM Revenue by Segment

Enterprise$755.7M+7.2%
Online$483.3M+2.8%

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