Zoom Communications 2026 Q3 Earnings Record Net Income Surges 196%

Zoom Communications (ZM) reported Q3 2026 earnings on November 25, 2025, with results exceeding expectations. The company raised full-year revenue guidance to $4.85B–$4.86B, reflecting confidence in its AI-driven growth strategy.

Revenue

Zoom’s total revenue grew 4.4% year-over-year to $1.23 billion, surpassing the $1.21 billion estimated by analysts.

Earnings/Net Income

The company’s EPS surged 206% to $2.05, driven by a 196% increase in net income to $612.87 million. This marked a record high for Q3 net income in eight years, underscoring robust profitability.

Post-Earnings Price Action Review

Zoom’s stock price demonstrated resilience in the immediate aftermath of the earnings release, with a 3.28% gain on the trading day, a 6.19% weekly climb, and a 2.44% monthly increase. While the post-earnings rally aligned with positive sentiment around AI monetization and guidance upgrades, technical indicators showed the stock trading slightly below its 50-day and 200-day moving averages. Analysts noted that while the short-term momentum was favorable, long-term performance would depend on sustaining AI adoption rates and managing competitive pressures in the unified communications sector.

CEO Commentary

CEO Eric Yuan highlighted AI innovation as a core growth driver, citing 4x YoY adoption of AI Companion 3.0 and expansion in Team Chat and Zoom Phone. Strategic priorities include scaling AI-first customer experiences and disciplined execution to balance innovation with profitability.

Guidance

Zoom provided Q4 2026 revenue guidance of $1.23B–$1.235B (4.1% YoY growth at midpoint) and non-GAAP operating income of $477M–$482M.

Additional News

Within three weeks of the earnings release, Zoom announced a $1 billion incremental share repurchase program, adding to its $2.38 billion buyback completed in Q3. The company also disclosed insider sales totaling $32.5 million by executives, including the COO and CFO, though ownership stakes remain substantial. Additionally, Zoom finalized the acquisition of BrightHire to enhance its AI-driven customer experience offerings, signaling a strategic push into AI-powered workforce solutions.

Image suggestion:

A graph showing Zoom’s Q3 2026 revenue and net income growth compared to the previous year, with annotations on AI adoption metrics.

Zoom’s updated FY 2026 EPS guidance of $5.95–$5.97 now exceeds consensus estimates, reflecting optimism about its AI monetization roadmap and enterprise expansion. However, investors remain cautious about market saturation and competition from integrated platforms, which could temper long-term growth prospects.