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Apr 30
Zoom Q1 2026 Earnings Report
Zoom reported solid financial results for Q1 FY2026, surpassing revenue and EPS guidance.
Key Takeaways
Zoom delivered stronger-than-expected performance in Q1 FY2026 with revenue growth, robust net income, and increased share repurchases, driven by enterprise adoption and AI-powered product innovation.
Total revenue reached $1.1747 billion, up 2.9% year over year.
GAAP EPS came in at $0.81 and Non-GAAP EPS at $1.43.
Net income rose to $254.6 million, compared to $216.3 million a year ago.
Zoom repurchased approximately 5.6 million shares, up from 4.3 million in Q4.
Zoom
Zoom
Zoom Revenue by Segment
Revenue by Segment
Enterprise Revenue
CapyFin.comOnline Revenue
CapyFin.com Forward Guidance
Zoom expects moderate growth in Q2 and FY2026, with steady enterprise momentum and strong free cash flow outlook, while macro uncertainties and lower online revenue may present headwinds.
Positive Outlook
- Q2 revenue expected between $1.195B and $1.200B.
- Non-GAAP EPS guidance for Q2 is $1.36–$1.37.
- Full-year revenue forecast between $4.800B and $4.810B.
- Strong full-year free cash flow guidance between $1.680B and $1.720B.
- Continued focus on shareholder returns with $1.2B in remaining authorized buybacks.
Challenges Ahead
- Online revenue showed a year-over-year decline.
- Macroeconomic uncertainty may affect customer spending.
- Operating cash flow declined compared to Q1 FY2025.
- Churn remains a challenge in the online segment despite improvements.
- Limited upside in enterprise net dollar expansion rate, currently at 98%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income