Enterprise to the fore as Zoom claims strong Q1
First quarter of 2026 financial year sees AI-first work platform provider break $1bn revenue barrier, with especially strong rise in enterprise business and AI Companion usage, up nearly 40%
With its chief executive, Eric Yuan, somewhat fittingly delivering his financial update via a custom artificial intelligence (AI) avatar, Zoom Communications announced “solid” financial results for the first quarter of its 2026 financial year, with sustained enterprise momentum, strong profitability and the expansion of AI-powered solutions across its core platform.
For the quarter ended 30 April 2025, total revenue amounted to $1.174bn, up 2.9% year on year. Drilling into business lines, enterprise revenue was $704.7m, up 5.9% compared with the first quarter last year, while online revenue was $470m, slipping 1.2% on an annual basis.
Generally Accepted Accounting Principles (GAAP) income from operations for the first quarter was $241.6m, compared with $203m in the first quarter of Zoom’s 2025 financial year. Non-GAAP income from operations – adjusting for stock-based compensation expense and related payroll taxes, and acquisition-related expenses – was $467.3m, compared with $456.6m a year ago. Quarterly GAAP operating margin was 20.6% and non-GAAP operating margin was 39.8%. GAAP net income for the first quarter was $254.6m, and $448.3m on a non-GAAP basis.
Revealing the customer metrics driving the increase in revenue, the results showed that at the end of the first quarter of the 2026 financial year, Zoom had 4,192 customers contributing more than $100,000 in trailing 12-month revenue, up 8% from the same quarter in the previous financial year. In addition, there was a trailing 12-month net dollar expansion rate of 98% for enterprise customers.
It reported online average monthly churn of 2.8% for the first quarter, down 40 basis points from the same quarter last year. The percentage of total online monthly recurring revenue from online customers with a continual term of service of at least 16 months was 74.2%, up 40 basis points year on year.
Assessing the results and providing guidance for the following quarter and the rest of the financial year, Zoom expects total second-quarter revenue to be between $1.195bn and $1.2bn, and revenue in constant currency to be in the range of $1.196bn to $1.201bn.
Non-GAAP income from operations is expected to be between $460m and $465m for the quarter, and non-GAAP diluted earnings per share is expected to be between $1.36 and $1.37, with approximately 310 million weighted average shares outstanding.
Read more about Zoom
- Zoom enhances Team Chat to streamline collaboration: Zoom updates productivity tool to include a sidebar to organise and streamline chat communication, support for code blocks and in-line code, and AI Companion integrations to help users improve productivity.
- Zoom enriches enterprise solutions offer: Communications and collaboration leader Zoom unveils new suite of business offerings to boost efficiency, reliability, security and compliance for enterprise organisations.
- Zoom debuts new agentic AI skills and agents for Zoom AI Companion: AI-first work platform provider expands agentic skills across the entire portfolio using reasoning and memory to take action and orchestrate task execution, conversational self-service and custom agent creation.
- Zoom pursues the path to happiness through AI: Pandemic-era breakout video comms and collaboration company makes pivot towards being an AI-first work platform.
For the full 2026 financial year, total revenue is projected to be between $4.8bn and $4.81bn, with revenue in constant currency expected to be between $4.808bn and $4.818bn. Full financial year non-GAAP income from operations is forecast to be between $1.865bn and $1.875bn.
Non-GAAP diluted earnings per share is expected to be between $5.56 and $5.59 for the year, with approximately 312 million weighted average shares outstanding. Full financial year free cash flow is expected to be between $1.68bn and $1.72bn.
“We delivered another solid quarter, exceeding guidance in both revenue and profitability – a testament to the strength of our platform and AI-first innovation,” said Yuan.
“In an uncertain macroeconomic environment, customers are turning to Zoom to drive efficiency, improve customer and employee experiences, and future-proof their businesses. We saw continued momentum in Zoom Customer Experience, Zoom Revenue Accelerator and Workvivo as customers look to elevate CX [customer experience], reinvigorate sales and strengthen culture.”
