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Zoom Communications 8-K Report, Financial Results (May 21, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 21, 2025
Period End
May 21, 2025
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 · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed May 21, 2025. Cited figures are marked; the original filing is the authoritative source.

Zoom Communications, Inc. (NASDAQ: ZM) filed this Form 8-K under Item 2.02 to furnish a press release reporting its financial results for the first fiscal quarter of 2026, the three months ended April 30, 2025.

Total revenue was $1,174.7 milliona, up 2.9% year over year as reported and 3.4% in constant currency. Enterprise revenue rose 5.9% to $704.7 million, while Online revenue fell 1.2% to $470.0 million. GAAP net income was $254.6 million, or $0.81 per diluted share, up from $0.69 a year earlier, and non-GAAP diluted EPS was $1.43, up from $1.35.

GAAP operating margin was 20.6% and non-GAAP operating margin was 39.8%. Cash flow was softer. Net cash provided by operating activities was $489.3 millionb, compared with $588.2 million a year earlier, and free cash flow was $463.4 million versus $569.7 million.

The company repurchased about 5.6 million shares in the quarter, up from 4.3 million in the prior quarter, and cash paid for repurchases of common stock was $418.0 millionc. Total cash, cash equivalents and marketable securities were $7.8 billion at quarter end, and $1.2 billion of share repurchase authorization remained. For the second quarter of fiscal 2026, Zoom guided to total revenue of $1.195 billion to $1.200 billion and non-GAAP diluted EPS of $1.36 to $1.37.

For full fiscal 2026, guidance calls for total revenue of $4.800 billion to $4.810 billiond, non-GAAP diluted EPS of $5.56 to $5.59, and free cash flow of $1.680 billion to $1.720 billion. The guidance EPS and share counts exclude any impact from the remaining repurchase authorization.

02—Key points

Key Highlights

  1. Total revenue of $1,174.7 million, up 2.9% year over year (3.4% in constant currency); Enterprise revenue up 5.9% to $704.7 million, Online revenue down 1.2% to $470.0 million.
  2. GAAP net income of $254.6 million ($0.81 diluted EPS) versus $216.3 million ($0.69) a year earlier; non-GAAP diluted EPS of $1.43 versus $1.35.
  3. GAAP operating margin of 20.6% and non-GAAP operating margin of 39.8%, compared with 17.8% and 40.0% in the prior-year quarter.
  4. Operating cash flow fell to $489.3 million from $588.2 million, and free cash flow fell to $463.4 million from $569.7 million.
  5. Customers contributing more than $100,000 in trailing 12-month revenue reached 4,192, up 8.0% year over year; Enterprise trailing 12-month net dollar expansion rate was 98%.
  6. Share repurchases accelerated, with about 5.6 million shares bought in the quarter versus 4.3 million in Q4; $1.2 billion of authorization remained as of April 30, 2025.
  7. FY2026 guidance: total revenue of $4.800 to $4.810 billion, non-GAAP diluted EPS of $5.56 to $5.59, and free cash flow of $1.680 to $1.720 billion.

03—Questions

Frequently Asked Questions

  1. How did Zoom perform in the first quarter of fiscal 2026?

    Total revenue was $1,174.7 million, up 2.9% year over year as reported and 3.4% in constant currency. GAAP net income was $254.6 million, or $0.81 per diluted share, compared with $0.69 a year earlier. Non-GAAP diluted EPS was $1.43, up from $1.35.

  2. Which business segments drove revenue growth?

    Enterprise revenue grew 5.9% year over year to $704.7 million. Online revenue declined 1.2% to $470.0 million.

  3. Did cash generation improve or weaken?

    It weakened. Net cash provided by operating activities was $489.3 million, compared with $588.2 million in the first quarter of fiscal 2025. Free cash flow was $463.4 million, down from $569.7 million.

  4. What is Zoom's outlook for the second quarter and full fiscal 2026?

    For Q2 fiscal 2026, Zoom expects total revenue of $1.195 billion to $1.200 billion and non-GAAP diluted EPS of $1.36 to $1.37. For full fiscal 2026, it expects total revenue of $4.800 billion to $4.810 billion, non-GAAP diluted EPS of $5.56 to $5.59, and free cash flow of $1.680 billion to $1.720 billion. The EPS and share count guidance excludes the impact of the remaining $1.2 billion repurchase authorization.

  5. How much capital is Zoom returning to shareholders?

    Cash paid for repurchases of common stock was $418.0 million in the quarter, and the company repurchased about 5.6 million shares. Approximately $1.2 billion of share repurchase authorization remained as of April 30, 2025.

04—Continue

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