ZM Zoom Communications, Inc.
Price Chart
Executive Summary
Zoom reported Q1 FY2027 revenue of $1.239B (+5.5% YoY), slightly above the high end of guidance, and non-GAAP diluted EPS of $1.55, beating the consensus estimate of $1.42 by 9.2%. The company raised its full-year FY2027 revenue guidance to $5.080-$5.090B (from $5.065-$5.075B) and EPS guidance to $5.96-$6.00 (from $5.77-$5.81), while also authorizing an additional $1.0B in share repurchases. The combination of a modest revenue beat, raised guidance, expanding margins, and increased capital return supports a bullish read.
Key Financial Metrics
Actionable Insight
The raised guidance and $1B incremental buyback signal management confidence in sustained mid-single-digit revenue growth and margin expansion. Watch for continued Enterprise net dollar expansion improvement above 99% and AI monetization traction (AI Companion paid users +184% YoY) as key catalysts for further multiple expansion.
Key Facts
- Q1 FY2027 revenue of $1.239B, up 5.5% YoY, exceeding the high end of guidance ($1.220-$1.225B)
- Non-GAAP diluted EPS of $1.55 vs consensus $1.42 (9.2% beat); GAAP diluted EPS of $1.42 vs $0.81 YoY
- GAAP operating margin expanded 450 bps YoY to 25.1%; non-GAAP operating margin expanded 130 bps to 41.1%
- Full-year FY2027 revenue guidance raised to $5.080-$5.090B (from $5.065-$5.075B); EPS guidance raised to $5.96-$6.00 (from $5.77-$5.81)
- Board authorized an additional $1.0B in share repurchases, incremental to $625M remaining as of April 30, 2026
- Enterprise revenue grew 7.2% YoY to $755.7M; trailing 12-month net dollar expansion rate improved to 99% from 98%
- Free cash flow of $500.5M, up 8.0% YoY; operating cash flow of $521.6M, up 6.6% YoY
Financial Impact
Revenue beat of ~$17M vs guidance midpoint; EPS beat of $0.13 vs consensus; raised FY guidance by ~$15M revenue and ~$0.19 EPS midpoint
Risk Factors
- Online average monthly churn increased to 3.0% from 2.8% YoY, indicating potential pressure in the SMB segment
- Revenue growth remains modest at 5.5% YoY; constant currency growth was 4.6%, decelerating from Q4's 4.8%
- Full-year free cash flow guidance of $1.700-$1.740B implies a decline from FY2026's $1.924B, despite raised EPS guidance
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001585521-26-000069 |
| Document: zm-20260521.htm | 0001585521-26-000069 |
| Document: 0001585521-26-000069-index-headers.html | 0001585521-26-000069 |
| Document: 0001585521-26-000069-index.html | 0001585521-26-000069 |
| Document: 0001585521-26-000069.txt | 0001585521-26-000069 |
| 8-K Data (Synthetic) | 0001585521-26-000069 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 21, 2026
19d ago
|
8-K
| $105.47 $111.52 | ▲ +5.74% | ▲ +4.08% | $101.15 (−4.10%) |
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May 21, 2026
19d ago
|
Press Release
| $105.47 $111.52 | ▲ +5.74% | ▲ +4.08% | $101.15 (−4.10%) |
|
May 4, 2026
5w ago
|
Insider Cluster
| $106.57 $106.69 | ▲ +0.11% | ▼ −2.82% | $101.15 (−5.09%) |
|
May 1, 2026
5w ago
|
Court Ruling
| $103.00 $108.36 | ▼ −5.20% | ▼ −2.85% | $101.15 (+1.80%) |
|
Apr 10, 2026
8w ago
|
Insider Cluster
| $78.90 $88.02 | ▼ −11.56% | ▼ −7.05% | $101.15 (−28.20%) |
|
Apr 10, 2026
8w ago
|
Insider Cluster
| $78.90 $88.02 | ▼ −11.56% | ▼ −7.05% | $101.15 (−28.20%) |
|
Apr 10, 2026
8w ago
|
Insider Cluster
| $78.90 $88.02 | ▼ −11.56% | ▼ −7.05% | $101.15 (−28.20%) |
|
Apr 10, 2026
8w ago
|
Insider Cluster
| $78.90 $88.02 | ▼ −11.56% | ▼ −7.05% | $101.15 (−28.20%) |
|
Mar 30, 2026
10w ago
|
Court Ruling
| $78.64 $83.75 | ▲ +6.50% | ▲ +2.20% | $101.15 (+28.62%) |
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Feb 28, 2026
14w ago
|
Institutional Cluster
| $72.65 $76.77 | ▼ −5.67% | ▼ −6.88% | $101.15 (−39.23%) |
US Market Status
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