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Zoom Communications Annual Report, Year Ended Jan 31, 2026

Filing Date
Filed February 27, 2026
Period End
January 31, 2026
Security
ZM
In the record · 2019–202610-K710-Q238-K67

ZM filed 7 annual reports (10-K), 23 quarterly reports (10-Q) and 67 current reports (8-K) between 2019 and 2026.

  1. Material agreement8-K · Jul ’21Jul ’21
  2. Leadership change8-K · Mar ’23Mar ’23
  3. Leadership change8-K · Apr ’25Apr ’25

01—Abstract

Summary

Summary of the 10-K filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.

Zoom Communications, Inc. (Nasdaq: ZM) reported fiscal year 2026 (ended January 31, 2026) revenue of $4,868.8 milliona, up from $4,665.4 million in fiscal 2025, an increase of 4.4% as stated in the filing.

Gross margin rose to 77.0% from 75.8%, income from operations reached $1,123.6 millionb versus $813.3 million, and net income was $1,900.1 million, compared with $1,010.2 million in the prior year. Net income was boosted by $969.8 million in gains on strategic investments, net, driven mainly by fair value changes in privately held securities. Net cash provided by operating activities was $1,989.0 million, and free cash flow (a non-GAAP measure defined by the company) was $1,924.1 million.

The company reported a trailing 12-month net dollar expansion rate for Enterprise customers of 98%, down from 101% two years earlier, and attributed the softness to slower hiring and seat downsells from existing enterprise customers. Revenue from customers contributing more than $100,000c of trailing 12-month revenue rose to 32.8% of total revenue, with 4,468 such customers at year-end. The company repurchased 20,385,361 Class A shares for about $1.6 billion during the year and had $1.0 billion remaining under its repurchase authorization.

Cash, cash equivalents and marketable securities totaled $7.8 billiond as of January 31, 2026. The filing also highlights AI as a central strategic focus, including AI Companion 3.0 launched at no additional cost for paid Zoom Workplace users, and the acquisition of BrightHire, Inc. for $98.0 million in cash. Management disclosed a change in the amortization period for deferred contract acquisition costs from three years to five years, with an estimated reduction in sales and marketing expense of $90.0 million to $95.0 million for fiscal 2027.

The company continues to disclose an ongoing EDNY and NDCA government investigation, and the SEC investigation concluded in July 2025 without an enforcement recommendation. The dual-class structure gives Class B holders 51.8% of voting power as of January 31, 2026.

02—Key points

Key Highlights

  1. Revenue of $4,868.8 million for fiscal 2026, up 4.4% from $4,665.4 million in fiscal 2025.
  2. Net income of $1,900.1 million, including $969.8 million in gains on strategic investments, net, versus $1,010.2 million in the prior year.
  3. Gross margin expanded to 77.0% from 75.8%, and income from operations rose to $1,123.6 million from $813.3 million.
  4. Trailing 12-month net dollar expansion rate for Enterprise customers was 98%, versus 101% as of January 31, 2024, with the company citing slower hiring and seat downsells.
  5. Free cash flow (non-GAAP) of $1,924.1 million, with operating cash flow of $1,989.0 million.
  6. Repurchased 20,385,361 Class A shares for about $1.6 billion; $1.0 billion remains under the authorization.
  7. Deferred contract acquisition cost amortization period extended from three to five years, with an estimated $90.0 million to $95.0 million reduction in sales and marketing expense expected in fiscal 2027.

03—One dollar

Follow one dollar

Of each $1.00 of revenue in FY2026, Zoom Communications kept $0.39.

  1. Revenue$4.87B100.0%
  2. Cost of revenue−$1.12B23.0%
  3. Gross profit$3.75B77.0%
  4. Operating costs−$2.63B53.9%
  5. Operating income$1.12B23.1%
  6. Interest, other & tax$776.5M15.9%
  7. Net income$1.90B39.0%
Computed from 10-KFY2026filed February 27, 2026Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

Where FY2026 revenue went

$4.87B
  • Other operating costs: $1.78B, 37% of revenue
  • Operating income: $1.12B, 23% of revenue
  • Cost of revenue: $1.12B, 23% of revenue
  • R&D: $844.9M, 17% of revenue

Kept 23% as operating income

Full revenue history →

04—Financials

Financial Highlights

Figures from 10-KFY2026filed February 27, 2026
Revenue$4.87B77.0% Gross MarginNet Income$1.90B39.0% Net MarginEPS (Diluted)$6.18Total Assets$11.96BCash & Equivalents$1.27BFree Cash Flow$1.92B

Financial Statements

FY2026 against FY2025

Line itemFY2026FY2025Change
Revenue$4.87B$4.67B+4.4%
Cost of Revenue$1.12B$1.13B−0.9%
Gross Profit$3.75B$3.54B+6.1%
R&D Expenses$844.88M$852.41M−0.9%
Operating Expenses$2.63B$2.72B−3.5%
Operating Income$1.12B$813.29M+38.2%
Net Income$1.90B$1.01B+88.1%
EPS (Basic)$6.32$3.28+92.7%
EPS (Diluted)$6.18$3.21+92.5%
Shares Outstanding (Basic)300.50M307.98M−2.4%
Shares Outstanding (Diluted)307.33M315.07M−2.5%

05—Questions

Frequently Asked Questions

  1. How did Zoom's revenue and profitability trend in fiscal 2026?

    Revenue grew 4.4% to $4,868.8 million. Gross margin improved to 77.0% from 75.8%, and income from operations increased to $1,123.6 million from $813.3 million. Net income more than doubled to $1,900.1 million, but this figure includes $969.8 million in gains on strategic investments, primarily from fair value changes in privately held securities.

  2. Is Zoom's enterprise customer expansion still healthy?

    The trailing 12-month net dollar expansion rate for Enterprise customers was 98% as of January 31, 2026, compared with 98% a year earlier and 101% as of January 31, 2024. The company attributes the decline to slower hiring and higher seat count downsells from Enterprise customers in key markets, though it cites continued opportunity through new products such as Zoom Phone, Zoom Contact Center, and Workvivo.

  3. How much cash does Zoom have and how is it returning capital?

    As of January 31, 2026, cash, cash equivalents and marketable securities totaled $7.8 billion. During fiscal 2026, Zoom repurchased and retired 20,385,361 Class A shares for about $1.6 billion, and $1.0 billion remained available under the repurchase authorization. The company has never paid cash dividends and does not expect to do so in the foreseeable future.

  4. What are the main legal and regulatory matters investors should monitor?

    The EDNY and NDCA investigations, which relate to interactions with foreign governments including the Chinese government, storage of user data, and privacy matters, remain ongoing, and the company cannot predict the outcome or estimate a range of possible loss. The SEC investigation concluded on July 30, 2025 with no recommended enforcement action. The dual-class structure gives Class B holders 51.8% of voting power, and Eric S. Yuan and affiliates control approximately 37.7% of voting power.

06—Continue

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