revenue
1.275–1.28 $billion
Q3 2027
official guidance
ZOOM COMMUNICATIONS, INC.
Last · NASDAQ$101.33+3.19 (+3.25%)stale · yahoo · 161h ago
Market cap$29.57B263.2M sh
P/E · TTM9.4fwd 16.0 · eps 10.77
Beta1.04vs S&P 500
Div yield—annual · TTM
52w range
$70.70$114.74
Volume3.5Msession
| Revenue | $5.0B |
|---|---|
| Operating income | $1.2B |
| Net income | $3.3B |
| Free cash flow | $1.9B |
| Operating margin | 23.7% |
| Net margin | 65.2% |
| Return on equity | 28.8% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Strong cash generation and enterprise momentum are offset by low consolidated growth and unproven AI monetization.
Hold: Zoom delivered better-than-feared execution, with revenue up 4.9% to $1.277 billion, Enterprise up 7.8%, RPO up 14%, and FY27 revenue guidance raised to $5.085-$5.095 billion, or 4.5% growth at midpoint. The bull case is accelerating Phone, Contact Center, and AI adoption, but Online revenue grew only 0.6%, Enterprise NDR remains below expansionary territory at 99%, and AI investment reduced non-GAAP operating margin to 40.0%.
Themes
- Enterprise Growth
- Online Segment
- Zoom Phone
- Contact Center
- Ai Monetization
- Common Room Acquisition
Near term
White-label churn is expected to create a 40-basis-point headwind to total revenue growth and a 60-basis-point headwind to Enterprise growth in the second half.
Online growth is now guided to flat for FY27 after weaker top-of-funnel product discovery, despite stable 2.9% monthly churn.
Monitor whether Q3 revenue guidance of $1.275-$1.280 billion and $1.46-$1.48 non-GAAP EPS reflect genuine Enterprise acceleration or conservatism.
AI usage and compute costs pressured gross margin to 79.1%; second-half optimization must prevent further margin erosion.
Longer term
Enterprise diversification is gaining traction: Enterprise customers above $100,000 grew 8.2%, Phone ARR growth remained in the teens, and Contact Center ARR grew at a high-double-digit rate.
Zoom's unified Meetings, Phone, Contact Center, and AI platform could support displacement and larger, longer-duration contracts; RPO rose 14% and non-current RPO rose 25%.
AI monetization remains early but encouraging: Workplace AI licensed MAUs grew 125%, ZVA customers grew 256%, and Revenue Accelerator paid customers grew 41%.
Competitive moat risk remains material as OpenAI and CRM vendors add native voice and customer-experience capabilities; Zoom's claimed data and integration advantage was not supported by disclosed win rates or quantified share gains.
The $7.2 billion cash balance and $1.78-$1.82 billion FY27 free-cash-flow outlook provide meaningful capital-return capacity, but buybacks are currently doing more to support EPS than accelerating revenue growth.
Red flags
Management did not provide a quantified Contact Center ARR milestone, win rate, customer expansion rate, or AI revenue contribution despite repeated analyst questions.
Management characterized Common Room's contribution as de minimis and gave no quantified synergy or return framework for the $250 million acquisition.
The response to competitive pressure from OpenAI and CRM vendors relied on platform breadth, proprietary technology, and customer trust rather than comparative evidence.
The 40% non-GAAP operating margin is down 130 basis points year over year while AI usage is increasing, and the long-term 80% gross-margin aspiration remains dependent on unproven model-routing and in-house SLM efficiencies.
Enterprise NDR at 99% still indicates contraction from the existing base, limiting confidence that current growth will become durable without continued new-logo wins.
Forward outlook
revenue growth
3.9 pct
Q3 2027
official guidance
adjusted eps
1.46–1.48 $per share
Q3 2027
official guidance
operating margin
40.1 pct
Q3 2027
official guidance
revenue
5.085–5.095 $billion
FY 2027
official guidance
revenue growth
4.5 pct
FY 2027
official guidance
adjusted eps
6.08–6.12 $per share
FY 2027
official guidance
operating margin
40.7 pct
FY 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-02-27
- Sbc Revenue Elevated
Red flags
- Sbc Revenue Elevated — SBC/Revenue 15.6%
Upcoming earnings
9:00 PM UTC+1
Period
Oct 2026
Est. EPS
$1.49
Est. revenue
1.3B
Earnings transcripts
Press & signals
- GlobeNewswire
Zoom Appoints Former Oracle CFO Jeff Epstein to Board of Directors; Jonathan Chadwick to Retire
- GlobeNewswire
Zoom Communications Reports Financial Results for the Second Quarter of Fiscal Year 2027
- GlobeNewswire
Zoom appoints Carlos Quaderi as Head of APAC to drive next phase of AI-powered growth
The rest of this company's wire — with summaries and source links — is part of Pro.
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