How did Zoom perform financially in the fourth quarter and fiscal year 2025?

Q4 total revenue was $1,184.1 million, up 3.3% year over year, and full-year revenue was $4,665.4 million, up 3.1%. GAAP net income for the fourth quarter was $367.9 million, or $1.16 per diluted share, compared with $0.95 a year earlier. For the full year, GAAP net income was $1,010.2 million, or $3.21 per diluted share.

What drove the growth between Enterprise and Online revenue?

Enterprise revenue was $706.8 million in Q4, up 5.9% year over year, and $2,754.2 million for the full year, up 5.2%. Online revenue was $477.3 million in Q4, down 0.4% year over year, and $1,911.2 million for the full year, up 0.2%. The company also noted that the Enterprise trailing 12-month net dollar expansion rate was 98%.

What is Zoom's financial outlook for fiscal year 2026?

Zoom expects full-year fiscal 2026 total revenue of $4.785 billion to $4.795 billion, non-GAAP income from operations of $1.850 billion to $1.860 billion, non-GAAP diluted EPS of $5.34 to $5.37 on about 318 million weighted average shares, and free cash flow of $1.680 billion to $1.720 billion. First-quarter guidance calls for total revenue of $1.162 billion to $1.167 billion.

Is Zoom returning capital to shareholders?

Yes. Zoom repurchased approximately 4.3 million shares in the fourth quarter and approximately 15.9 million shares for the full fiscal year. Cash paid for repurchases of common stock was $1,093.9 million for the year. As of January 31, 2025, $1.6 billion of share repurchase authorization remained, and the guided EPS and share count do not reflect any impact from that remaining authority.

What reporting changes did Zoom announce?

Beginning in the first quarter of fiscal year 2026, Zoom will no longer report the number of Enterprise customers as a customer metric. The company said customers with lower monthly recurring revenue are expected to move from Enterprise to Online over time, making the distinction less meaningful. Enterprise customer counts will continue to be provided in the appendix of the investor deck through the end of fiscal 2026.

ZM 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 24, 2025. Cited figures are marked; the original filing is the authoritative source.

Zoom Communications, Inc. (NASDAQ: ZM) furnished a press release reporting results for the three months and fiscal year ended January 31, 2025.

Total revenue for the fourth quarter was $1,184.1 million^a, up 3.3% year over year (3.6% in constant currency), and full-year revenue was $4,665.4 million, up 3.1% (3.3% in constant currency). Enterprise revenue grew 5.9% in the quarter to $706.8 million and 5.2% for the year to $2,754.2 million, while Online revenue was down 0.4% in the quarter and up 0.2% for the year to $1,911.2 million. Profitability improved meaningfully.

GAAP operating margin was 19.0% in the fourth quarter, up 430 bps, and 17.4% for the full year, up 580 bps, with GAAP income from operations of $813.3 million^b for fiscal 2025 versus $525.3 million a year earlier. Non-GAAP operating margin was 39.5% in the quarter and 39.4% for the year. Operating cash flow reached $1,945.3 million for the year, up 21.7%, and free cash flow was $1,808.7 million, up 22.9%.

The company repurchased approximately 15.9 million shares during the year and had $1.6 billion^c of repurchase authorization remaining as of January 31, 2025. For fiscal 2026, Zoom guided to total revenue of $4.785 billion to $4.795 billion, non-GAAP income from operations of $1.850 billion to $1.860 billion, non-GAAP diluted EPS of $5.34 to $5.37, and free cash flow of $1.680 billion to $1.720 billion.

Beginning in the first quarter of fiscal 2026, the company will stop reporting Enterprise customer count as a metric. The information is furnished under Item 2.02 and is not deemed filed for purposes of Section 18 of the Exchange Act.

02—Key points

Key Highlights

Q4 FY25 total revenue of $1,184.1 million, up 3.3% year over year; full-year revenue of $4,665.4 million, up 3.1%.
Enterprise revenue grew 5.9% in Q4 to $706.8 million and 5.2% for the full year to $2,754.2 million; Online revenue was down 0.4% in Q4.
GAAP operating margin expanded to 19.0% in Q4 (up 430 bps) and 17.4% for the full year (up 580 bps); full-year GAAP income from operations was $813.3 million.
Full-year operating cash flow of $1,945.3 million, up 21.7%, with free cash flow of $1,808.7 million, up 22.9%.
Full-year GAAP net income of $1,010.2 million, or $3.21 per diluted share, versus $2.07 in fiscal 2024; non-GAAP diluted EPS was $5.54.
Repurchased approximately 15.9 million shares during fiscal 2025, with $1.6 billion of authorization remaining as of January 31, 2025.
FY26 guidance: total revenue of $4.785–$4.795 billion, non-GAAP operating income of $1.850–$1.860 billion, and free cash flow of $1.680–$1.720 billion.

03—Questions

Frequently Asked Questions

How did Zoom perform financially in the fourth quarter and fiscal year 2025?
Q4 total revenue was $1,184.1 million, up 3.3% year over year, and full-year revenue was $4,665.4 million, up 3.1%. GAAP net income for the fourth quarter was $367.9 million, or $1.16 per diluted share, compared with $0.95 a year earlier. For the full year, GAAP net income was $1,010.2 million, or $3.21 per diluted share.
What drove the growth between Enterprise and Online revenue?
Enterprise revenue was $706.8 million in Q4, up 5.9% year over year, and $2,754.2 million for the full year, up 5.2%. Online revenue was $477.3 million in Q4, down 0.4% year over year, and $1,911.2 million for the full year, up 0.2%. The company also noted that the Enterprise trailing 12-month net dollar expansion rate was 98%.
What is Zoom's financial outlook for fiscal year 2026?
Zoom expects full-year fiscal 2026 total revenue of $4.785 billion to $4.795 billion, non-GAAP income from operations of $1.850 billion to $1.860 billion, non-GAAP diluted EPS of $5.34 to $5.37 on about 318 million weighted average shares, and free cash flow of $1.680 billion to $1.720 billion. First-quarter guidance calls for total revenue of $1.162 billion to $1.167 billion.
Is Zoom returning capital to shareholders?
Yes. Zoom repurchased approximately 4.3 million shares in the fourth quarter and approximately 15.9 million shares for the full fiscal year. Cash paid for repurchases of common stock was $1,093.9 million for the year. As of January 31, 2025, $1.6 billion of share repurchase authorization remained, and the guided EPS and share count do not reflect any impact from that remaining authority.
What reporting changes did Zoom announce?
Beginning in the first quarter of fiscal year 2026, Zoom will no longer report the number of Enterprise customers as a customer metric. The company said customers with lower monthly recurring revenue are expected to move from Enterprise to Online over time, making the distinction less meaningful. Enterprise customer counts will continue to be provided in the appendix of the investor deck through the end of fiscal 2026.

04—Continue

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