Zoom's Q4 2025: Navigating Contradictions in AI Strategy, Revenue Growth, and Post-Election Demand

These are the key contradictions discussed in Zoom's latest 2025Q4 earnings call, specifically including: AI Pricing Strategy, Revenue Growth Strategy, AI Capabilities Impact on Business, and Customer Demand Post-Election:



Revenue Growth and AI Integration:
- Zoom Communications reported total revenue of $1.184 billion for Q4, up 3% year-on-year, and Enterprise revenue grew 6% year-on-year, accounting for 60% of total revenue.
- The growth was driven by strong adoption of AI capabilities, particularly in the AI-first work platform and significant wins in Contact Center and Workvivo.

Contact Center Expansion and AI Impact:
- Zoom's Contact Center achieved its largest ARR deal in history with a Fortune 100 US tech company for over 15,000 agents.
- This expansion is attributed to the power of AI and workforce engagement capabilities, with a focus on higher-tier Elite and Premium packages.

Operating Cash Flow and Stock Repurchase:
- Zoom's operating cash flow increased 21% year-on-year to $425 million, and free cash flow grew 25% year-on-year to $416 million.
- The company repurchased 4.3 million shares in Q4 for $355 million, reflecting significant progress in reducing common shares outstanding.

Go-to-Market Strategy and Channel Sales:
- Zoom is focused on expanding its channel partnerships, with more than 50% of its top 10 Contact Center deals driven by channel partners in Q4.
- This strategy is driven by a need to accelerate channel growth and leverage partners for broader market penetration.