Zoom (ZM) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Growth drivers and business transformation

• Enterprise revenue grew 7% in Q4, now over 60% of total revenue, driven by product diversification, AI monetization, channel investment, and improved enterprise sales execution.

• Three key operating priorities for FY27: infusing AI into core products, developing new AI monetization routes, and scaling the Contact Center business.

• Demand environment is shifting toward pragmatic AI value, with customers seeking tangible business outcomes from AI investments.

AI strategy and monetization

• AI is central to the product roadmap, with a federated approach using both SLMs and LLMs to balance quality and cost, supporting long-term gross margins near 80%.

• AI is democratized across paid SKUs, with additional monetization in high-value horizontal and vertical scenarios, especially in Contact Center and sales-focused products.

• Strategic partnership and investment in Anthropic supports the federated AI approach and product integration.

Product and market expansion

• Contact Center and Virtual Assistant products are driving disruption in a $200 billion market, with AI as a key differentiator and high double-digit revenue growth.

• Integration across meetings, phone, and contact center creates a seamless experience, with most large deals involving AI and significant displacement of legacy competitors.

• Zoom Phone continues mid-teens growth, with cross-sell opportunities from Contact Center and ongoing runway for expansion.

• Channel ecosystem is now a majority contributor to Phone and Contact Center deals, supporting enterprise growth.