Zoom Communications (ZM) Announces Financial Earnings Results For The First Quarter Of Fiscal Year 2026

Zoom Video Communications, Inc. (ZM) today announced its financial results for the most recent quarter, revealing a mixed performance. The company reported earnings per share of $0.81, falling short of analysts’ expectations of $1.31, marking a significant miss. However, Zoom exceeded revenue estimates with total revenue reaching $1.17 billion, slightly surpassing the forecast of $1.17 billion.

Key Highlights:

• Total revenue for Q1 FY2026 was $1,174.7 million, a 2.9% increase year-over-year.
• Enterprise revenue reached $704.7 million, up 5.9% year-over-year.
• GAAP operating margin was 20.6%, while non-GAAP operating margin was 39.8%.
• GAAP EPS was $0.81, an 18.7% increase year-over-year; non-GAAP EPS was $1.43, up 6.0% year-over-year.
• The number of customers contributing over $100,000 in revenue increased by 8.0% year-over-year.
• Approximately 5.6 million shares of common stock were repurchased in Q1.

In the first quarter of fiscal year 2026, Zoom Communications reported solid financial results, with total revenue of $1,174.7 million, reflecting a 2.9% increase year-over-year. The company’s CEO, Eric S. Yuan, highlighted the strength of their platform and AI-first innovation, stating, “We delivered another solid quarter, exceeding guidance in both revenue and profitability.” He noted that in a challenging macroeconomic environment, customers are increasingly turning to Zoom to enhance efficiency and improve experiences for both customers and employees. The company also saw continued momentum in its Customer Experience and Revenue Accelerator initiatives.

Looking ahead, Zoom provided guidance for the second quarter of fiscal year 2026, expecting total revenue between $1.195 billion and $1.200 billion, and non-GAAP income from operations between $460 million and $465 million. For the full fiscal year 2026, total revenue is projected to be between $4.800 billion and $4.810 billion. The company remains committed to shareholder value, as evidenced by its increased share repurchase activity, and continues to focus on product innovation and operational discipline to drive future growth.

Zoom Video Communications, Inc. (ZM) has experienced a rollercoaster of price changes recently, with a notable 16.24% increase over the past month, reflecting renewed investor interest. However, this surge comes on the heels of a slight decline of 0.42% over the last three months, suggesting some volatility in market sentiment. Over the past year, the stock has impressively risen by 29.66%, indicating a strong recovery and growth trajectory. Fundamental metrics also paint a promising picture; the company boasts a price-to-earnings ratio of 25.55, which, while higher than some peers, suggests that investors are willing to pay a premium for its growth potential. The two-year compound annual growth rate (CAGR) for earnings per share stands at 12.49%, and free cash flow has surged by an impressive 24.06%, highlighting robust operational efficiency. Additionally, a net profit margin of 21.61% underscores the company’s ability to convert revenue into profit effectively. With a return on invested capital of 6.00%, Zoom appears to be strategically positioning itself for sustainable growth in the competitive tech landscape. Overall, while the stock has shown some fluctuations, the underlying fundamentals suggest a company that is not only resilient but also poised for future success.

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Hardware-as-a-Service allows users to access video communication technology from third party equipment; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom’s video-based communications solutions, as well as integrate Zoom’s technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.