Zoom Communications Reports Financial Results for the Third Quarter of Fiscal Year 2026

• Third quarter total revenue of $1,229.8 million, up 4.4% year over year as reported and 4.2% in constant currency
• Third quarter Enterprise revenue of $741.4 million, up 6.1% year over year
• Third quarter GAAP operating margin of 25.2% and non-GAAP operating margin of 41.2%
• Third quarter operating cash flow of $629.3 million, up 30.2% year over year
• Third quarter operating cash flow margin of 51.2% and free cash flow margin of 50.0%
• Third quarter GAAP EPS of $2.01, up 204.5% year over year, and non-GAAP EPS of $1.52, up 10.1% year over year
• Number of customers contributing more than $100,000 in trailing 12 months revenue up 9.2% year over year
• Repurchased approximately 5.1 million shares of common stock in Q3, bringing the total shares repurchased under the current plan to 32.5 million
• Increased total common stock repurchase authorization by $1.0 billion, incremental to the $310.4 million remaining authorization as of October 31, 2025

Nov. 2025 -- Zoom Communications, Inc. (NASDAQ: ZM), today announced financial results for the third fiscal quarter ended October 31, 2025.

“Zoom is continuing to build on our vision of an AI‑first platform that helps people connect and collaborate more seamlessly,” said Eric S. Yuan, Zoom's founder and CEO. “This quarter we announced AI Companion 3.0, and we're thrilled to see AI Companion adoption grow meaningfully. We're also seeing strong momentum with Custom AI Companion and our AI‑first Customer Experience suite, which helped make this one of our best CX quarters, with broad AI adoption across major deals. Our disciplined approach is fueling top-line growth, stellar profitability, and lower dilution helping us turn AI innovation into real, lasting value for customers and shareholders.'

Third Quarter Fiscal Year 2026 Financial Highlights:

• Revenue: Total revenue for the third quarter was $1,229.8 million, up 4.4% year over year. Adjusting for foreign currency impact, revenue in constant currency was $1,227.4 million, up 4.2% year over year. Enterprise revenue was $741.4 million, up 6.1% year over year, and Online revenue was $488.4 million, up 2.0% year over year.
• Income from Operations and Operating Margin: GAAP income from operations for the third quarter was $310.4 million, compared to GAAP income from operations of $182.8 million in the third quarter of fiscal year 2025. Non-GAAP income from operations, which adjusts for stock-based compensation expense and related payroll taxes, acquisition-related expenses, and litigation settlements, net, was $507.0 million for the third quarter, compared to non-GAAP income from operations of $457.8 million in the third quarter of fiscal year 2025. For the third quarter, GAAP operating margin was 25.2% and non-GAAP operating margin was 41.2%.
• Net Income and Diluted Net Income Per Share: GAAP net income for the third quarter was $612.9 million, or $2.01 per share, compared to GAAP net income of $207.1 million, or $0.66 per share, in the third quarter of fiscal year 2025. Non-GAAP net income for the third quarter, which adjusts for stock-based compensation expense and related payroll taxes, gains on strategic investments, net, acquisition-related expenses, litigation settlements, net, and the tax effects on non-GAAP adjustments, was $462.8 million, or $1.52 per share. In the third quarter of fiscal year 2025, non-GAAP net income was $435.1 million, or $1.38 per share.
• Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of October 31, 2025 was $7.9 billion.
• Cash Flow: Net cash provided by operating activities was $629.3 million for the third quarter, compared to $483.2 million in the third quarter of fiscal year 2025. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $614.3 million, compared to $457.7 million in the third quarter of fiscal year 2025.

Customer Metrics: Drivers of total revenue included acquiring new customers. At the end of the third quarter of fiscal year 2026, Zoom had:

• 4,363 customers contributing more than $100,000 in trailing 12 months revenue, up 9.2% from the same quarter last fiscal year.
• A trailing 12-month net dollar expansion rate for Enterprise customers of 98%.
• Online average monthly churn of 2.7% for the third quarter, flat year over year.
• The percentage of total Online MRR from Online customers with a continual term of service of at least 16 months was 74.4%, up 30 bps year over year.

Financial Outlook: Zoom is providing the following guidance for its fourth quarter of fiscal year 2026 and updating its guidance for full fiscal year 2026.

• Fourth Quarter Fiscal Year 2026: Total revenue is expected to be between $1.230 billion and $1.235 billion and revenue in constant currency is expected to be between $1.224 billion and $1.229 billion. Non-GAAP income from operations is expected to be between $477.0 million and $482.0 million. Non-GAAP diluted EPS is expected to be between $1.48 and $1.49 with approximately 305 million weighted average shares outstanding.
• Full Fiscal Year 2026: Total revenue is expected to be between $4.852 billion and $4.857 billion and revenue in constant currency is expected to be between $4.844 billion and $4.849 billion. Non-GAAP income from operations is expected to be between $1.955 billion and $1.960 billion. Non-GAAP diluted EPS is expected to be between $5.95 and $5.97 with approximately 308 million weighted average shares outstanding. Full fiscal year free cash flow is expected to be between $1.860 billion and $1.880 billion.

The EPS and share count figures do not include the impact from the share repurchase authorization discussed below.

Additional information on Zoom's reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Zoom's results computed in accordance with GAAP.

A supplemental financial presentation and other information can be accessed through Zoom's investor relations website at investors.zoom.us.

Stock Repurchase Authorization: In November 2025, Zoom's Board of Directors authorized the repurchase of an additional $1.0 billion of Zoom's outstanding Class A common stock, incremental to the $310.4 million remaining authorization as of October 31, 2025.

Repurchases of Zoom's Class A common stock may be effected, from time to time, either on the open market (including pre-set trading plans), in privately negotiated transactions, and other transactions in accordance with applicable securities laws.

The timing and the amount of any repurchased Class A common stock will be determined by Zoom's management based on its evaluation of market conditions and other factors. The repurchase program will be funded using Zoom's working capital. Any repurchased shares of Class A common stock will be retired. The repurchase program does not obligate Zoom to acquire any particular amount of Class A common stock, and the repurchase program may be suspended or discontinued at any time at Zoom's discretion.

Zoom Video Earnings Call

Zoom will host a Zoom Video Webinar for investors on November 24, 2025 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the company's financial results, business highlights and financial outlook.