AI Earnings Predictions for Zoom Video Communications Inc. (ZM)

EX-99.1

2 zm-20260731ex991.htm

EX-99.1

Document

Exhibit 99.1

Zoom Communications Reports Financial Results for the Second Quarter of Fiscal Year 2027

•Second quarter total revenue of $1,277.2 million, up 4.9% year over year as reported and 4.7% in constant currency

•Second quarter Enterprise revenue of $787.5 million, up 7.8% year over year

•Second quarter GAAP operating margin of 24.6% and non-GAAP operating margin of 40.0%

•Trailing 12-month net dollar expansion rate for Enterprise customers increased to 99% from 98% as of the same quarter last fiscal year

•Repurchased approximately 3.7 million shares of common stock in second quarter, bringing the total shares repurchased under the current plan to 44.2 million

•Number of customers contributing more than $100,000 in trailing 12 months revenue up 8.2% year over year

San Jose, California – August 25, 2026 – Zoom Communications, Inc. (NASDAQ: ZM), today announced financial results for the second fiscal quarter ended July 31, 2026.

“FY27 continues to progress well, reflecting focused execution against our three priorities and clear Enterprise business momentum. Total revenue grew 4.9% year over year, anchored by 7.8% growth in Enterprise revenue, its strongest growth rate in three years,” said Eric S. Yuan, Zoom’s founder and CEO. “Our AI-first Customer Experience portfolio continues to scale, delivering high-double-digit ARR expansion, driven in part by strong adoption of Zoom Virtual Agent, whose customer count increased 256% year over year. With innovations including ZoomMate, My Notes, AI Productivity Suite, ZVA Receptionist, and Workvivo HQ Agent, and acquisitions like Common Room and BrightHire, we are embedding AI into the flow of work across collaboration, customer experience, revenue orchestration, recruiting, and employee experience. The breadth of that AI adoption reflects how Zoom is differentiating as a system of action for modern work, moving enterprise operations from conversation to completion.”

Second Quarter Fiscal Year 2027 Financial Highlights:

•Revenue: Total revenue for the second quarter was $1,277.2 million, up 4.9% year over year. Adjusting for foreign currency impact, revenue in constant currency was $1,274.5 million, up 4.7% year over year. Enterprise revenue was $787.5 million, up 7.8% year over year, and Online revenue was $489.7 million, up 0.6% year over year.

•Income from Operations and Operating Margin: GAAP income from operations for the second quarter was $314.3 million, compared to GAAP income from operations of $321.7 million in the second quarter of fiscal year 2026. Non-GAAP income from operations, which adjusts for stock-based compensation expense and related payroll taxes, acquisition-related expenses, and litigation settlements, net, was $510.3 million for the second quarter, compared to non-GAAP income from operations of $503.2 million in the second quarter of fiscal year 2026. For the second quarter, GAAP operating margin was 24.6% and non-GAAP operating margin was 40.0%.

•Net Income and Diluted Net Income Per Share: GAAP net income for the second quarter was $1,542.4 million, or $5.15 per share, compared to GAAP net income of $358.6 million, or $1.16 per share, in the second quarter of fiscal year 2026. Non-GAAP net income for the second quarter, which adjusts for stock-based compensation expense and related payroll taxes, gains on strategic investments, net, acquisition-related expenses, litigation settlements, net, and the tax effects on non-GAAP adjustments, was $464.0 million, or $1.55 per share. In the second quarter of fiscal year 2026, non-GAAP net income was $471.3 million, or $1.53 per share.

•Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of July 31, 2026 was $7.2 billion.

•Cash Flow: Net cash provided by operating activities was $494.8 million for the second quarter, compared to $515.9 million in the second quarter of fiscal year 2026. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $472.4 million, compared to $508.0 million in the second quarter of fiscal year 2026.

Customer Metrics: Drivers of total revenue included acquiring new customers. At the end of the second quarter of fiscal year 2027:

•The number of customers contributing more than $100,000 in trailing 12 months revenue was 4,625, up 8.2% from the same quarter last fiscal year.

•The trailing 12-month net dollar expansion rate for Enterprise customers was 99%, up from 98% as of the same quarter last fiscal year.

•Online average monthly churn was 2.9%, consistent with the same quarter last fiscal year.

•Online customers with at least 16 months of continual service represented 75.6% of total Online MRR, up 70 bps year over year.

Financial Outlook: Zoom is providing the following guidance for its third quarter of fiscal year 2027 and updating its guidance for full fiscal year 2027.

•Third

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zm-202602250001585521FALSE00015855212026-02-252026-02-25

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 25, 2026

Zoom Communications, Inc. (Exact name of Registrant as Specified in Its Charter)

Delaware001-3886561-1648780 (State or Other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification No.)

55 Almaden Boulevard, 6th Floor San Jose, California 95113 (Address of principal executive offices and Zip Code) (888) 799-9666 (Registrant’s Telephone Number, Including Area Code) Not Applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below): ☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: Title of each classTrading Symbol(s)Name of each exchange on which registered Class A Common Stock, $0.001 par value per shareZMThe Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations And Financial Condition. On February 25, 2026, Zoom Communications, Inc. (the “Company”) issued a press release announcing its financial results for the three months and the fiscal year ended January 31, 2026.  A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference. The information contained in this report, including Exhibit 99.1 attached hereto, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section.  The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements And Exhibits. (d)    Exhibits Exhibit No.Description 99.1Press release dated February 25, 2026 of Zoom Communications, Inc.

104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Zoom Communications, Inc.

Dated: February 25, 2026By:/s/ Michelle Chang Michelle Chang Chief Financial Officer