Zoom (ZM) Q4 2026 earnings summary

Executive summary

• Q4 FY26 revenue grew 5.3% year-over-year to $1.25 billion, with full-year revenue up 4.4% to $4.87 billion; enterprise revenue grew 7.1% in Q4 and 6.5% for the year, now 61% of total revenue.

• AI-driven innovation, including AI Companion 3.0 and acquisitions like BrightHire, fueled customer wins and deeper engagement across major sectors.

• Major competitive displacements in phone and contact center, with bundled deals and platform adoption increasing among large enterprises.

• Online business showed signs of stabilization, with churn near all-time lows and online revenue up 2.6% in Q4.

• Share repurchases totaled 3.8 million shares in Q4 and 36.3 million since Q1 FY25, with $1.0 billion authorized remaining.

Financial highlights

• Q4 non-GAAP gross margin was 79.8%, up 1 point year-over-year; GAAP gross margin was 76.3%.

• Q4 non-GAAP operating income was $490 million (39.3% margin); non-GAAP EPS was $1.44, up $0.03 year-over-year.

• Q4 free cash flow was $338 million (27.1% margin); FY26 free cash flow grew 6.4% to $1.9 billion.

• Cash and equivalents at quarter-end totaled $7.8 billion.

• Deferred revenue at Q4-end grew 5% year-over-year to $1.42 billion; RPO increased over 10% to $4.2 billion.

Outlook and guidance

• Q1 FY27 revenue expected at $1.22–$1.225 billion; non-GAAP EPS $1.40–$1.42.

• FY27 revenue guidance is $5.065–$5.075 billion; non-GAAP operating income $2.05–$2.06 billion, margin 40.5%.

• FY27 non-GAAP EPS expected at $5.77–$5.81; free cash flow guidance $1.7–$1.74 billion.

• $1.0 billion authorized share repurchase remains as of January 31, 2026.

• Buybacks will continue to offset dilution, reflecting confidence in long-term value creation.