Zoom Video Communications, Inc. Class A ( (ZM) ) has released its Q3 earnings. Here is a breakdown of the information Zoom Video Communications, Inc. Class A presented to its investors.
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Zoom Video Communications, Inc., a leader in the technology sector, specializes in providing a comprehensive AI-first platform designed to enhance human connection and collaboration through various communication tools such as meetings, chat, and phone services. The company is headquartered in San Jose, California.
In its third-quarter earnings report for fiscal year 2026, Zoom reported a total revenue of $1,229.8 million, marking a 4.4% increase year over year. The company also highlighted significant growth in enterprise revenue and a substantial rise in operating cash flow, reflecting its strategic focus on AI-driven solutions and customer experience enhancements.
Key financial metrics from the report include a 6.1% year-over-year increase in enterprise revenue to $741.4 million, and a notable 30.2% rise in operating cash flow to $629.3 million. The company’s GAAP operating margin stood at 25.2%, with a non-GAAP operating margin of 41.2%. Additionally, Zoom’s GAAP earnings per share (EPS) saw a remarkable increase of 204.5% to $2.01, while non-GAAP EPS rose by 10.1% to $1.52. The company also expanded its stock repurchase program, authorizing an additional $1.0 billion.
Zoom’s strategic initiatives, including the launch of AI Companion 3.0, have contributed to its robust financial performance and growing customer base. The company reported a 9.2% increase in the number of customers contributing more than $100,000 in trailing 12 months revenue, indicating strong market adoption of its AI solutions.
Looking ahead, Zoom’s management remains optimistic about continued growth, projecting fourth-quarter revenue between $1.230 billion and $1.235 billion. The company aims to sustain its momentum by leveraging its AI capabilities and expanding its market presence, while maintaining a disciplined approach to profitability and shareholder value.