Income is growing modestly
In the fourth quarter of FY2026, Zoom reported:
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Net worth: $1.247 billion, up 5.3% year over year
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Business income: $757.3 million, up 7.1%
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Online income: $489.7 million, up 2.6%
Throughout the financial year:
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Gross income: $4.869 billion, up 4.4% year over year
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The business segment remains the main driver of growth, while the online segment has grown only marginally
The company also reported a 9.3% increase in customers generating more than $100,000 a year, indicating deep penetration among large organizations.
Salaries and benefits
Zoom delivered strong profit growth despite limited revenue growth.
GAAP results (reported)
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Net income: $674.1 million
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EPS (GAAP): $2.22, up significantly from $1.16 last year
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Operating margin (GAAP): 20.0%, increasing every year
Adjusted results (Non-GAAP).
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Non-GAAP net income: $437.1 million
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EPS (Adjusted): $1.44, up slightly year over year
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Non-GAAP operating margin: 39.3%
Profits have been achieved from cost guidance and contracts for high-volume businesses.
Cash flow and cash return
Zoom continued to generate strong cash flow:
Q4 FY2026
Full year FY2026
The company repurchased 3.8 million shares in Q4 and 20.4 million shares during the year, reflecting confidence in its long-term prospects.
Management commentary: AI and business focus
The executives stressed that AI and business solutions are important for future growth.
Leadership highlighted:
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Strong adoption of Zoom Customer Experience (CX) solutions.
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AI capabilities are included in major business deals
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Expanding beyond video meetings to the wider “workplace”.
The company said it expects to exceed $5 billion in annual revenue next fiscal year as these programs expand.
Outlook
Zoom provided guidance for the first quarter of FY2027:
The outlook suggests continued growth but not acceleration, indicating a mature market situation.
Recent reports also note continued competitive pressure from platforms like Microsoft Teams and Google Meet, which have been bundled into comprehensive productivity suites.
What the results show
1) Transition from epidemic to sustained growth
Zoom is now a mature software company rather than an overgrowth issue.
2) The business part is important
Large corporate customers drive most of the growth.
3) AI as the next lever for growth
New AI tools and customer experience products are aimed at expanding revenue streams.
4) Strong profits despite slow growth
High margins and cash flow remain major strengths.
Bottom line
Zoom’s Q4 FY2026 results show the company is stabilizing after its pandemic. Although revenue growth is modest, strong earnings, increased business acceptance, and significant cash generation indicate resilience. The success of its AI-driven platform strategy will likely determine whether Zoom can return to strong long-term growth.
To view the company’s past earnings and recent call records, click here to visit Alphastreet’s news channel.
