ZM Zoom Communications, Inc.
Price Chart
Executive Summary
Zoom reported Q1 FY2027 revenue of $1.239B (+5.5% YoY) and GAAP EPS of $1.42, a 1.7% beat vs $1.42 consensus. Enterprise revenue grew 7.2% YoY to $755.7M, and the company raised its full-year revenue guidance to $5.080-$5.090B while increasing its share repurchase authorization by $1.0B. Despite the beat, the modest growth rate and elevated online churn (3.0% vs 2.8% YoY) limit the bullish case.
Key Financial Metrics
Actionable Insight
The 5.5% revenue growth and 1.7% EPS beat are in-line with expectations, and the raised guidance (+$30M at midpoint) is modest. The $1.0B buyback authorization provides a floor but does not signal accelerating growth. Watch for Q2 guidance ($1.265-$1.270B) vs consensus $1.27B — the midpoint is slightly below. The AI monetization narrative (184% AI Companion growth) is positive but not yet material to total revenue. Monitor next quarter for enterprise net dollar expansion rate crossing 100% as a catalyst.
Key Facts
- Q1 FY2027 revenue $1.239B, up 5.5% YoY, above guidance high end
- GAAP EPS $1.42 vs consensus $1.42 (1.7% beat)
- Enterprise revenue $755.7M, up 7.2% YoY
- GAAP operating margin 25.1%, up 450 bps YoY; non-GAAP operating margin 41.1%, up 130 bps
- Trailing 12-month net dollar expansion rate for Enterprise customers improved to 99% from 98%
- Online average monthly churn increased to 3.0% from 2.8% YoY
- Full-year FY2027 revenue guidance raised to $5.080-$5.090B (vs prior $5.050-$5.080B implied)
- Board authorized additional $1.0B share repurchase, incremental to $625M remaining
- Free cash flow $500.5M, up 8.0% YoY; operating cash flow $521.6M
- AI Companion paid users grew 184% YoY; My Notes reached 1.5M licensed users in 4 months
Financial Impact
Revenue beat by ~$19M vs consensus; EPS beat by $0.02; guidance raised modestly; $1.0B buyback authorization added
Risk Factors
- Online churn increased to 3.0% from 2.8% YoY, indicating competitive pressure in SMB segment
- Enterprise net dollar expansion rate at 99% still below 100%, meaning existing customers are contracting on net
- Revenue growth of 5.5% remains low single-digit, limiting upside multiple expansion
- Full-year guidance implies ~4.5% growth at midpoint, decelerating from Q1's 5.5%
- Stock-based compensation remains elevated at $189M (15.3% of revenue)
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3299724 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 21, 2026
19d ago
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8-K
| $105.47 $111.52 | ▲ +5.74% | ▲ +4.08% | $101.15 (−4.10%) |
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May 21, 2026
19d ago
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Press Release
| $105.47 $111.52 | ▲ +5.74% | ▲ +4.08% | $101.15 (−4.10%) |
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May 4, 2026
5w ago
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Insider Cluster
| $106.57 $106.69 | ▲ +0.11% | ▼ −2.82% | $101.15 (−5.09%) |
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May 1, 2026
5w ago
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Court Ruling
| $103.00 $108.36 | ▼ −5.20% | ▼ −2.85% | $101.15 (+1.80%) |
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Apr 10, 2026
8w ago
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Insider Cluster
| $78.90 $88.02 | ▼ −11.56% | ▼ −7.05% | $101.15 (−28.20%) |
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Apr 10, 2026
8w ago
|
Insider Cluster
| $78.90 $88.02 | ▼ −11.56% | ▼ −7.05% | $101.15 (−28.20%) |
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Apr 10, 2026
8w ago
|
Insider Cluster
| $78.90 $88.02 | ▼ −11.56% | ▼ −7.05% | $101.15 (−28.20%) |
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Apr 10, 2026
8w ago
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Insider Cluster
| $78.90 $88.02 | ▼ −11.56% | ▼ −7.05% | $101.15 (−28.20%) |
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Mar 30, 2026
10w ago
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Court Ruling
| $78.64 $83.75 | ▲ +6.50% | ▲ +2.20% | $101.15 (+28.62%) |
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Feb 28, 2026
14w ago
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Institutional Cluster
| $72.65 $76.77 | ▼ −5.67% | ▼ −6.88% | $101.15 (−39.23%) |
US Market Status
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