Zoom Communications reported financial results for the fourth quarter and full fiscal year ended January 31, 2026, showing moderate revenue growth, strong profitability, and continued expansion in enterprise customers as the company transitions beyond its pandemic era boom.
The results highlight Zoom’s shift toward AI driven products and enterprise services to sustain growth amid intensifying competition and normalization of remote work trends.
Revenue grows modestly
For the fourth quarter of FY2026, Zoom reported:
Revenue: $1.247 billion, up 5.3% year over year
Enterprise revenue: $757.3 million, up 7.1%
Online revenue: $489.7 million, up 2.6%
For the full fiscal year:
Total revenue: $4.869 billion, up 4.4% year over year
Enterprise segment remained the main growth driver, while the online segment grew only slightly
The company also reported a 9.3% increase in customers generating more than $100,000 in annual revenue, indicating deeper penetration among large organizations.
Earnings and profitability
Zoom delivered strong profit growth despite moderate revenue expansion.
GAAP results (reported)
Net income: $674.1 million
EPS (GAAP): $2.22, up sharply from $1.16 last year
Operating margin (GAAP): 20.0%, up year over year
Adjusted (Non-GAAP) results
Non-GAAP net income: $437.1 million
EPS (Adjusted): $1.44, up slightly year over year
Non-GAAP operating margin: 39.3%
Profitability benefited from cost discipline and higher-margin enterprise contracts.
Cash flow and capital return
Zoom continued to generate strong cash flow:
Q4 FY2026
Operating cash flow: $354.5 million
Free cash flow: $338.4 million
Full year FY2026
Operating cash flow: $1.989 billion
Free cash flow: $1.924 billion
The company repurchased 3.8 million shares in Q4 and 20.4 million shares during the year, signaling confidence in long term prospects.
Management commentary: AI and enterprise focus
Management emphasized that AI and enterprise solutions are central to future growth.
Leadership highlighted:
Strong adoption of Zoom Customer Experience (CX) solutions
AI capabilities included in major enterprise deals
Expansion beyond video meetings into a broader “work platform”
The company said it expects to surpass $5 billion in annual revenue in the next fiscal year as these initiatives scale.
Outlook
Zoom provided guidance for the first quarter of FY2027:
Revenue: $1.220 billion to $1.225 billion
Adjusted EPS: $1.40 to $1.42
The outlook suggests continued steady growth but not a rapid acceleration, reflecting a mature market environment.
Recent reports also note ongoing competitive pressure from platforms like Microsoft Teams and Google Meet, which are bundled into broader productivity suites.
What the results signal
1) Transition from pandemic boom to steady growth
Zoom is now a mature software company rather than a hyper-growth story.
2) Enterprise segment is key
Large corporate customers are driving most of the growth.
3) AI as the next growth lever
New AI tools and customer experience products are intended to expand revenue streams.
4) Strong profitability despite slower growth
High margins and cash flow remain major strengths.
Bottom line
Zoom’s Q4 FY2026 results show a company stabilizing after its pandemic surge. While revenue growth is modest, strong earnings, rising enterprise adoption, and significant cash generation demonstrate resilience. The success of its AI driven platform strategy will likely determine whether Zoom can return to stronger long term growth.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet news channel.
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