How did Zoom perform in its third fiscal quarter of 2026?

Total revenue was $1,229.8 million, up 4.4% year over year as reported and 4.2% in constant currency. Enterprise revenue grew 6.1% to $741.4 million, and Online revenue grew 2.0% to $488.4 million. Net income was $612.9 million, or $2.01 per diluted share, versus $0.66 a year earlier.

Why is GAAP net income so much higher than non-GAAP net income this quarter?

The filing shows GAAP net income included $406.1 million of gains on strategic investments, net, which are excluded from non-GAAP net income. Non-GAAP net income was $462.8 million, or $1.52 per diluted share, after adjusting for stock-based compensation and related payroll taxes, acquisition-related expenses, and tax effects.

What are Zoom's updated expectations for fiscal 2026?

For the full fiscal year, Zoom expects total revenue of $4.852 billion to $4.857 billion, non-GAAP income from operations of $1.955 billion to $1.960 billion, non-GAAP diluted EPS of $5.95 to $5.97 on about 308 million weighted average shares, and free cash flow of $1.860 billion to $1.880 billion. For the fourth quarter, it expects total revenue of $1.230 billion to $1.235 billion.

What is the new share repurchase authorization?

In November 2025, the Board authorized repurchase of an additional $1.0 billion of Class A common stock, incremental to the $310.4 million remaining as of October 31, 2025. The program may be suspended or discontinued at any time, does not obligate Zoom to buy any particular amount, and will be funded with working capital.

What operating metrics signal customer health?

Customers contributing more than $100,000 in trailing 12-month revenue rose 9.2% year over year to 4,363. The Enterprise trailing 12-month net dollar expansion rate was 98%, and Online average monthly churn was 2.7%, flat year over year.

ZM 8-K: Earnings & Results

01—Abstract

Summary

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

Zoom Communications, Inc. (NASDAQ: ZM) furnished this Form 8-K under Item 2.02 to report its financial results for the third fiscal quarter of fiscal year 2026, the three months ended October 31, 2025, via a press release attached as Exhibit 99.1.

Total revenue was $1,229.8 million^a, up 4.4% year over year as reported and 4.2% in constant currency. Enterprise revenue was $741.4 million, up 6.1%, while Online revenue was $488.4 million, up 2.0%. GAAP income from operations was $310.4 million (GAAP operating margin 25.2%), compared with $182.8 million a year earlier, and non-GAAP income from operations was $507.0 million (non-GAAP operating margin 41.2%).

GAAP net income was $612.9 million^b, or $2.01 per diluted share, versus $0.66 a year earlier, though the filing shows GAAP results were boosted by $406.1 million of gains on strategic investments. Non-GAAP diluted EPS was $1.52, up 10.1% year over year. Cash generation was strong: operating cash flow was $629.3 million (up 30.2% year over year) and free cash flow was $614.3 million.

The company reported total cash, cash equivalents, and marketable securities of $7.9 billion^c as of October 31, 2025. Management pointed to AI Companion adoption, Custom AI Companion, and the AI-first Customer Experience suite as drivers. Zoom also reported 4,363 customers contributing more than $100,000 in trailing 12-month revenue, up 9.2%, and an Enterprise trailing 12-month net dollar expansion rate of 98%.

Zoom repurchased approximately 5.1 million shares in the quarter, bringing total repurchases under the current plan to 32.5 million shares, and the Board authorized an additional $1.0 billion^d repurchase, incremental to the $310.4 million remaining as of October 31, 2025. The filing also updated fiscal 2026 guidance: fourth-quarter total revenue of $1.230 billion to $1.235 billion and full-year revenue of $4.852 billion to $4.857 billion, with full-year non-GAAP diluted EPS of $5.95 to $5.97 and full-year free cash flow of $1.860 billion to $1.880 billion. Per the filing, the EPS and share count guidance excludes the impact of the new repurchase authorization.

02—Key points

Key Highlights

Total revenue of $1,229.8 million, up 4.4% year over year (4.2% in constant currency); Enterprise revenue up 6.1% to $741.4 million, Online revenue up 2.0% to $488.4 million.
GAAP operating margin of 25.2% versus non-GAAP operating margin of 41.2%; GAAP income from operations $310.4 million vs. $182.8 million a year earlier.
GAAP diluted EPS of $2.01 includes $406.1 million of gains on strategic investments; non-GAAP diluted EPS of $1.52, up 10.1% year over year.
Operating cash flow of $629.3 million (up 30.2% year over year) and free cash flow of $614.3 million; cash and marketable securities of $7.9 billion.
Customers above $100,000 in trailing 12-month revenue rose 9.2% to 4,363; Enterprise trailing 12-month net dollar expansion rate of 98%; Online average monthly churn of 2.7%, flat year over year.
Board authorized an additional $1.0 billion share repurchase, incremental to $310.4 million remaining; 5.1 million shares repurchased in Q3 and 32.5 million under the current plan.
Fiscal 2026 guidance updated: full-year revenue of $4.852 billion to $4.857 billion, non-GAAP diluted EPS of $5.95 to $5.97, and free cash flow of $1.860 billion to $1.880 billion.

03—Questions

Frequently Asked Questions

How did Zoom perform in its third fiscal quarter of 2026?
Total revenue was $1,229.8 million, up 4.4% year over year as reported and 4.2% in constant currency. Enterprise revenue grew 6.1% to $741.4 million, and Online revenue grew 2.0% to $488.4 million. Net income was $612.9 million, or $2.01 per diluted share, versus $0.66 a year earlier.
Why is GAAP net income so much higher than non-GAAP net income this quarter?
The filing shows GAAP net income included $406.1 million of gains on strategic investments, net, which are excluded from non-GAAP net income. Non-GAAP net income was $462.8 million, or $1.52 per diluted share, after adjusting for stock-based compensation and related payroll taxes, acquisition-related expenses, and tax effects.
What are Zoom's updated expectations for fiscal 2026?
For the full fiscal year, Zoom expects total revenue of $4.852 billion to $4.857 billion, non-GAAP income from operations of $1.955 billion to $1.960 billion, non-GAAP diluted EPS of $5.95 to $5.97 on about 308 million weighted average shares, and free cash flow of $1.860 billion to $1.880 billion. For the fourth quarter, it expects total revenue of $1.230 billion to $1.235 billion.
What is the new share repurchase authorization?
In November 2025, the Board authorized repurchase of an additional $1.0 billion of Class A common stock, incremental to the $310.4 million remaining as of October 31, 2025. The program may be suspended or discontinued at any time, does not obligate Zoom to buy any particular amount, and will be funded with working capital.
What operating metrics signal customer health?
Customers contributing more than $100,000 in trailing 12-month revenue rose 9.2% year over year to 4,363. The Enterprise trailing 12-month net dollar expansion rate was 98%, and Online average monthly churn was 2.7%, flat year over year.

04—Continue

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