Zoom Reports Modest Revenue Growth Amid Enterprise Push
Event summary
- Zoom reported $1.247 billion in Q4 revenue, up 5.3% YoY, with full-year revenue reaching $4.869 billion, up 4.4% YoY.
- Enterprise revenue grew 7.1% YoY in Q4, while Online revenue increased 2.6% YoY.
- GAAP operating margin improved to 20.0% in Q4, up 100 bps YoY, with full-year GAAP operating margin at 23.1%, up 570 bps YoY.
- Number of customers contributing over $100,000 in trailing 12 months revenue increased 9.3% YoY.
- Zoom repurchased approximately 3.8 million shares in Q4 and 20.4 million shares during the full fiscal year.
The big picture
Zoom's fiscal year 2026 results reflect a strategic emphasis on Enterprise solutions, driving modest revenue growth and improved profitability. The company's focus on turning conversations into completed workflows underscores its shift towards becoming a system of action for modern work. As Zoom enters fiscal year 2027, its ability to surpass the $5 billion revenue milestone will hinge on sustaining this Enterprise momentum and integrating AI capabilities into its offerings.
What we're watching
- Enterprise Focus
- How Zoom's accelerating Enterprise revenue growth will impact its overall strategy and market positioning.
- Profitability Trends
- Whether Zoom can sustain its improved operating margins amid competitive pressures.
- Customer Expansion
- The pace at which Zoom can continue to grow its high-value customer base.
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