Zoom (ZM) Q4 2025 earnings summary

Executive summary

• Q4 revenue reached $1.184 billion, up 3% year-over-year, with enterprise revenue growing 6% and online churn stable at 2.8%.

• Major advancements in AI transformed the platform into an AI-first work environment, with rapid adoption of AI Companion and significant wins in Contact Center and Workvivo.

• Notable customer wins included Amazon, Delta Air Lines, and Cloud Software Group, with Workvivo chosen as Delta's global employee engagement platform.

• Strategic partnerships, such as with Mitel, expanded access to millions of users and validated the open ecosystem approach.

• Strong cash position at $7.8 billion and share repurchases reduced common stock outstanding.

Financial highlights

• Q4 total revenue grew 3% year-over-year to $1.184 billion, exceeding guidance; constant currency revenue grew 4%.

• Enterprise revenue rose 6% year-over-year, now 60% of total revenue; Americas up 4%, EMEA up 2%, APAC up 3%.

• Non-GAAP gross margin was 78.8%, slightly lower due to AI investments; non-GAAP operating margin improved to 39.5%.

• Operating cash flow increased 21% to $425 million; free cash flow up 25% to $416 million.

• Ended Q4 with $7.8 billion in cash and equivalents; repurchased 4.3 million shares for $355 million in Q4.

Outlook and guidance

• Q1 FY26 revenue expected at $1.162–$1.167 billion (2% year-over-year growth); non-GAAP operating income $440–$445 million.

• FY26 revenue guidance: $4.785–$4.795 billion (2.7% year-over-year growth); non-GAAP operating income $1.85–$1.86 billion.

• FY26 free cash flow expected at $1.68–$1.72 billion; continued focus on profitability and cash flow generation.

• FY26 non-GAAP EPS guidance: $5.34–$5.37.

• $1.6 billion remains authorized for share repurchases as of January 31, 2025.