What guidance did Zoom Communications's management provide for the next earnings period?

What is Zoom Communications's gross profit margin?

What were the key takeaways from Zoom Communications’s earnings call?

What is the revenue and EPS growth rate for Zoom Communications year over year?

What were the key takeaways from Zoom Communications's earnings call?

What is Zoom Communications's latest dividend and current dividend yield?

Did Zoom Communications beat or miss consensus estimates last quarter?

What factors drove the changes in Zoom Communications's revenue and profit?

- **Revenue Beat**: Q3 $1.23B (+4.4% YoY), topping high end of guidance by $15M.
- **AI Growth**: AI Companion adoption +4x YoY, CX ARR high double digits.
- **Profitability**: Non-GAAP EPS $1.52 (+14% YoY), free cash flow margin 50%.
- **Guidance Raise**: FY26 revenue $4.85B-$4.86B, EPS $5.95-$5.97.
- **Share Buyback**: $1B incremental repurchase authorized.
- **M&A Focus**: Small tuck-ins like BrightHire to accelerate AI expansion.
- **Customer Win Rate**: 9/10 CX deals included AI, e.g., SolarWinds, LegalShield.
- **Phone Momentum**: 10M+ seats, mid-teens ARR growth, healthcare wins.
- **Workvivo Expansion**: Logos +70% YoY to 1,250, targeting Fortune 10.

**【CEO Summary Section】**
- Delivered strong Q3 results with broad momentum across products, industries, and customer segments.
- Focused on three priorities: elevating core products with AI, driving growth of new AI products, and scaling AI-first customer experience.
- AI Companion 3.0 adoption surged 4x YoY, with Team Chat MAUs up 20% YoY.
- Zoom Phone surpassed 10M paid seats, with ARR growth in mid-teens.
- Customer Experience (CX) ARR grew in high double digits, with 9 of top 10 deals involving paid AI.
- Acquired BrightHire to expand into AI-powered hiring workflows.
- Salesforce and Oracle adopted Custom AI Companion for enterprise-wide AI integration.

**【CFO Financial Commentary】**
- Q3 revenue: $1.23B (4.4% YoY), beating high end of guidance by $15M.
- Non-GAAP EPS: $1.52 (up 14% YoY), exceeding high end by $0.08.
- Gross margin: 80% (up 117bps YoY) due to cost optimization.
- Operating cash flow: $629M (30% YoY growth), free cash flow: $614M (50% margin).
- Deferred revenue: $1.44B (5% YoY), RPO: $4B (8% YoY).
- Q4 guidance: Revenue $1.23B-$1.235B (4.1% YoY), EPS $1.48-$1.49.
- Full-year FY26: Revenue $4.852B-$4.857B (4.1% YoY), EPS $5.95-$5.97.

**【Q&A Highlights】**
- **Growth Drivers**: Enterprise NDE stabilized at 98%, online churn at 2.7% (all-time low). CX and AI Companion are key growth engines.
- **AI Monetization**: Custom AI Companion wins with Fortune 200 companies, virtual agents on consumption-based pricing.
- **M&A Strategy**: Small- to medium-sized tuck-ins (e.g., BrightHire) to accelerate roadmap.
- **Deferred Revenue**: Q3 ended at high end of guidance, Q4 expected 4-5% YoY growth.
- **Free Cash Flow**: Full-year guidance $1.86B-$1.88B (3.4% YoY growth).
- **Share Buyback**: Board authorized $1B incremental repurchase.
- **International Growth**: Americas +5%, EMEA +3%, APAC +4% YoY.
- **Customer Experience**: 9 of top 10 CX deals included AI, e.g., SolarWinds, LegalShield.
- **Zoom Phone**: 10M+ seats, mid-teens ARR growth, wins in financial services and healthcare.
- **Workvivo**: Logos up 70% YoY to 1,250, spanning mid-market to Fortune 10.
- **AI-First Customer Experience**: Virtual Agent 2.0 adoption driving high double-digit CX growth.
- **Deferred Revenue**: Q3 ended at $1.44B (5% YoY), RPO $4B (8% YoY).

Zoom Communications Inc. (ZM) Q3 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

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Operating Expenses

Selling, General and Administrative Expenses

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ZM

ZM fundamentals

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