• First quarter Enterprise revenue of $755.7 million, up 7.2% year over year
  • Trailing 12-month net dollar expansion rate for Enterprise customers increased to 99% from 98% as of the same quarter last fiscal year
  • First quarter GAAP operating margin of 25.1%, up 450 bps year over year, and non-GAAP operating margin of 41.1%, up 130 bps year over year
  • Increased total common stock repurchase authorization by $1.0 billion, incremental to the $625.0 million remaining authorization as of April 30, 2026

Zoom Communications, Inc. (NASDAQ: ZM), today announced financial results for the first fiscal quarter ended April 30, 2026. “We saw continued momentum in the first quarter, with revenue up 5.5% year over year, exceeding the high end of our guidance,” said Eric S. Yuan, Zoom’s founder and CEO. “Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch. We also saw strong progress across new AI monetization streams and Zoom Customer Experience, which continued to see accelerating high double-digit growth. With strong profitability, cash flow, and an increased share repurchase authorization, we remain focused on turning AI innovation into durable growth, measurable customer value, and long-term shareholder returns.”

Revenue: Total revenue for the first quarter was $1,239.0 million, up 5.5% year over year. Adjusting for foreign currency impact, revenue in constant currency was $1,228.8 million, up 4.6% year over year. Enterprise revenue was $755.7 million, up 7.2% year over year, and Online revenue was $483.3 million, up 2.8% year over year.

Income from Operations and Operating Margin: GAAP income from operations for the first quarter was $310.5 million, compared to GAAP income from operations of $241.6 million in the first quarter of fiscal year 2026. Non-GAAP income from operations, which adjusts for stock-based compensation expense and related payroll taxes and acquisition-related expenses, was $508.7 million for the first quarter, compared to non-GAAP income from operations of $467.3 million in the first quarter of fiscal year 2026. For the first quarter, GAAP operating margin was 25.1% and non-GAAP operating margin was 41.1%.

Net Income and Diluted Net Income Per Share: GAAP net income for the first quarter was $425.7 million, or $1.42 per share, compared to GAAP net income of $254.6 million, or $0.81 per share, in the first quarter of fiscal year 2026. Non-GAAP net income for the first quarter, which adjusts for stock-based compensation expense and related payroll taxes, gains on strategic investments, net, acquisition-related expenses, and the tax effects on non-GAAP adjustments, was $465.0 million, or $1.55 per share. In the first quarter of fiscal year 2026, non-GAAP net income was $448.3 million, or $1.43 per share.

Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of April 30, 2026 was $7.7 billion.

Cash Flow: Net cash provided by operating activities was $521.6 million for the first quarter, compared to $489.3 million in the first quarter of fiscal year 2026. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $500.5 million, compared to $463.4 million in the first quarter of fiscal year 2026.

Customer Metrics: Drivers of total revenue included acquiring new customers. At the end of the first quarter of fiscal year 2027, Zoom had:

  • 4,534 customers contributing more than $100,000 in trailing 12 months revenue, up 8.2% from the same quarter last fiscal year.
  • A trailing 12-month net dollar expansion rate for Enterprise customers increased to 99% from 98% as of the same quarter last fiscal year.
  • Online average monthly churn of 3.0% for the first quarter, compared to 2.8% in the same quarter last fiscal year.
  • A percentage of total Online MRR from Online customers with a continual term of service of at least 16 months of 74.4%, up 20 bps year over year.

Financial Outlook: Zoom is providing the following guidance for its second quarter of fiscal year 2027 and updating its guidance for full fiscal year 2027.

  • Second Quarter Fiscal Year 2027: Total revenue is expected to be between $1.265 billion and $1.270 billion and revenue in constant currency is expected to be between $1.262 billion and $1.267 billion. Non-GAAP income from operations is expected to be between $508.0 million and $513.0 million. Non-GAAP diluted EPS is expected to be between $1.45 and $1.47 with approximately 304 million weighted average shares outstanding.
  • Full Fiscal Year 2027: Total revenue is expected to be between $5.080 billion and $5.090 billion and revenue in constant currency is expected to be between $5.062 billion and $5.072 billion. Non-GAAP income from operations is expected to be between $2.065 billion and $2.075 billion. Non-GAAP diluted EPS is expected to be between $5.96 and $6.00 with approximately 304 million weighted average shares outstanding. Full fiscal year free cash flow is expected to be between $1.700 billion and $1.740 billion.

The EPS and share count figures do not include the impact from the share repurchase authorization discussed below.

Additional information on Zoom's reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Zoom's results computed in accordance with GAAP.

A supplemental financial presentation and other information can be accessed through Zoom’s investor relations website at investors.zoom.us.

Stock Repurchase Authorization: In May 2026, Zoom’s Board of Directors authorized the repurchase of an additional $1.0 billion of Zoom’s outstanding Class A common stock, incremental to the $625.0 million remaining authorization as of April 30, 2026.

Repurchases of Zoom’s Class A common stock may be effected, from time to time, either on the open market (including pre-set trading plans), in privately negotiated transactions, and other transactions in accordance with applicable securities laws.

The timing and the amount of any repurchased Class A common stock will be determined by Zoom's management based on its evaluation of market conditions and other factors. The repurchase program will be funded using Zoom's working capital.

Any repurchased shares of Class A common stock will be retired. The repurchase program does not obligate Zoom to acquire any particular amount of Class A common stock, and the repurchase program may be suspended or discontinued at any time at Zoom’s discretion.