"We delivered another solid quarter, showcasing the power of our platform and innovation engine in helping customers navigate short-term challenges with greater efficiency while positioning them for long-term success."
— Eric Yuan
03Detailed Report
ZM
Zoom Video Communications Inc
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
Zoom Video Communications Inc. delivered a solid performance in Q1 2026, with total revenue reaching approximately $1.175 billion, reflecting a 3% year-over-year increase, and beating management's guidance. The company's enterprise revenue contributed significantly, growing by 6% year-over-year and representing 60% of total revenue. Management emphasized the successful integration of AI innovations and ongoing product developments aimed at enhancing customer productivity and reducing operational costs. Despite external challenges in the macroeconomic environment, the metrics indicate resilience, especially in customer retention and growth in high-value sectors. The company remains committed to expanding its AI capabilities and leveraging its unified communication platform to drive future growth.
Through strategic investments and robust performance indicators, Zoom projects a cautious yet optimistic outlook for FY 2026, expecting revenue between $4.8 billion and $4.81 billion. Investors should note the strong cash position as well as management’s proactive stance on enhancing shareholder value amidst evolving market dynamics.
Key Performance Indicators
Revenue
Increasing
1.17B
QoQ: -0.80% | YoY: 2.93%
Gross Profit
Increasing
896.31M
76.30% margin
QoQ: -0.05% | YoY: 11.08%
Operating Income
Decreasing
241.59M
QoQ: 59.06% | YoY: -12.53%
Net Income
Increasing
254.60M
QoQ: -30.79% | YoY: 17.70%
EPS
Increasing
0.84
QoQ: -30.42% | YoY: 19.29%
Revenue Trend
Margin Analysis
Financial Highlights
1. Revenue Growth:
- Total Revenue: $1.175 billion, up 3% YoY.
- Enterprise Revenue: $706.3 million, up 6% YoY.
- Online Business Churn: Improved to 2.8%, the lowest first quarter churn rate.
2. Profitability Ratios:
- Gross Profit: $896.3 million (Gross Profit Margin: 76.3%), slightly lower YoY due to AI investments.
- Operating Income: $241.6 million (Operating Margin: 20.5%), marking a significant 59.1% increase QoQ.
- Non-GAAP Diluted EPS: $1.43, beating EPS guidance by $0.12.
3. Cash Flow Position:
- Operating Cash Flow: $489 million, representing an operating cash flow margin of 41.6%.
- Free Cash Flow: $463 million with a free cash flow margin of 39.4%.