Loading...
•
Jan 31, 2025
Zoom Q4 2025 Earnings Report
Zoom reported steady revenue growth and improved profitability in Q4 FY25.
Key Takeaways
Zoom's fourth-quarter revenue grew 3.3% year over year to $1.184 billion, with enterprise revenue rising by 5.9%. GAAP net income increased to $367.9 million, while non-GAAP net income reached $446.9 million. Operating cash flow rose 20.9% to $424.6 million. The company continues to expand its AI capabilities and customer base.
Total revenue increased by 3.3% year over year, driven by enterprise growth.
GAAP net income rose to $367.9 million, reflecting stronger profitability.
Free cash flow increased 25.1% to $416.2 million.
Number of customers contributing over $100,000 in trailing 12-month revenue grew by 7.3%.
Forward Guidance
Zoom expects revenue for Q1 FY26 to range between $1.162 billion and $1.167 billion, with non-GAAP diluted EPS projected between $1.29 and $1.31. Full-year FY26 revenue is expected between $4.785 billion and $4.795 billion.
Positive Outlook
- Revenue growth expected to continue with strong enterprise demand.
- AI-driven innovations positioned for further adoption.
- Continued focus on operational efficiency and margin expansion.
- Healthy cash flow projections for fiscal year 2026.
- Stock repurchase program to enhance shareholder value.
Challenges Ahead
- Online revenue segment saw slight decline in Q4 FY25.
- Macroeconomic conditions could impact enterprise spending.
- Increasing competition in the collaboration and AI markets.
- Transition in customer classification may affect reported metrics.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...