'We are excited about our differentiated AI platform vision to deliver value for our customers and incredibly grateful for the trust and support of the entire Zoom team, our customers, and our investors.' - Eric Yuan
— Eric Yuan
03Detailed Report
ZM
Zoom Video Communications Inc
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
Swipe to view all report sections
Executive Summary
In Q3 2025, Zoom Video Communications Inc (ZM) demonstrated solid financial performance underpinned by a strategic pivot toward AI and growth in its enterprise business. The company's revenue reached $1.178 billion, marking a year-over-year growth of 4% and exceeding guidance by $13 million. This growth was primarily driven by an increase in enterprise revenues, which rose 6% year-over-year, showcasing an ongoing transition toward enterprise solutions comprising 59% of total revenue. Management emphasized the successful launch of AI Companion 2.0 and its impact on attracting new customers while enhancing service delivery for existing ones. The company's dedication to AI solutions, alongside robust financial metrics, indicates a positive trajectory amidst a mixed macroeconomic environment.
The increase in revenue and net income illustrates a robust operational performance. Improvements in the enterprise customer segment, indicated by a churn rate of 2.7%, the lowest reported to date, positively influence revenue stability and growth. Management's guidance suggests continued optimism for the upcoming quarter with expectations of $1.175 to $1.18 billion in revenue, reflecting a year-over-year growth of approximately 2.7%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.18B
3.59%
1.29%
Gross Profit
893.66M
3.23%
1.85%
Operating Income
182.84M
7.94%
-9.65%
Net Income
207.05M
46.62%
-5.46%
EPS
0.67
42.55%
-5.63%
Key Financial Ratios
Gross Profit Margin
Excellent
75.90%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
15.50%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
17.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.94%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.39%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
4.60
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
27.75x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Fair Value
2.65x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.