Zoom Communications 2026 Q3 Earnings Record Net Income Surges 196%

Zoom Communications (ZM) reported fiscal 2026 Q3 earnings on Nov 25, 2025, surpassing revenue and EPS estimates while raising full-year guidance. The company demonstrated strong operational performance, driven by AI innovation and platform expansion, with net income reaching a new 8-year high.

Revenue

Total revenue increased by 4.4% year-over-year to $1.23 billion, reflecting sustained growth in core communications solutions and expanding enterprise adoption.

Earnings/Net Income

Zoom’s non-GAAP EPS surged 206% to $2.05, with net income hitting $612.87 million—a 196% increase from $207.05 million in 2025 Q3. This marks the highest Q3 net income in eight years, underscoring robust profitability.

Post-Earnings Price Action Review

Following the earnings release, ZM’s stock gained 12.77% in intraday trading, outperforming market expectations. The rally was fueled by a 4.4% revenue beat and a 6.29% EPS surprise, which exceeded analyst forecasts. Additionally, the company’s guidance for FY 2026 revenue ($4.85B–$4.857B) and non-GAAP EPS ($5.95–$5.97) surpassed consensus estimates, further boosting investor confidence.

CEO Commentary

CEO Eric Yuan emphasized Zoom’s transformation into an AI-first platform, highlighting AI Companion 3.0’s 4x YoY adoption, Zoom Phone’s 10 million paid seats, and strategic partnerships with Oracle and Salesforce. Yuan expressed optimism about monetizing AI-driven solutions across verticals like hiring via the BrightHire acquisition.

Guidance

Zoom raised FY 2026 revenue guidance to $4.852B–$4.857B (4.1% YoY growth) and non-GAAP EPS to $5.95–$5.97. The company also authorized a $1B incremental share repurchase, reflecting confidence in $1.86B–$1.88B in free cash flow.

Additional News

Within three weeks of the earnings release, Zoom completed a $2.38B share repurchase program, signaling management’s commitment to shareholder returns. The company also announced the acquisition of BrightHire to expand its AI-driven hiring solutions, enhancing its enterprise offerings. Additionally, Zoom launched Zoomie, an AI-powered meeting assistant with voice controls and photorealistic avatars, further solidifying its AI-first strategy.