Zoom Communications Inc Financials
Zoom Communications Inc (ZM) reported $5.0B in revenue over the twelve months to Jul 31, 2026, up 5.0% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 9 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Zoom's dominant mechanic is margin expansion: modest revenue growth converts into more operating profit and cash for buybacks.
Revenue reached$4.9B in FY2026 while operating margin reached23.1% , showing profit expansion outpaced top-line growth. SG&A compression brought expense to$392.9M while R&D remained$844.9M , pointing to overhead efficiency rather than broad underinvestment as the main margin mechanism.
Cash-backed earnings are evident: operating cash flow of
The FY2026 balance sheet held
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Zoom Communications Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Zoom Communications Inc has an operating margin of 23.1%, meaning the company retains $23 of operating profit per $100 of revenue. This strong profitability earns a score of 77/100, reflecting efficient cost management and pricing power. This is up from 17.4% the prior year.
Zoom Communications Inc's revenue grew a modest 4.4% year-over-year to $4.9B. This slow but positive growth earns a score of 45/100.
Zoom Communications Inc carries a low D/E ratio of 0.22, meaning only $0.22 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 73/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 4.33, Zoom Communications Inc holds $4.33 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 87/100.
Zoom Communications Inc converts 39.5% of revenue into free cash flow ($1.9B). This strong cash generation earns a score of 97/100.
Zoom Communications Inc's ROE of 19.4% shows moderate profitability relative to equity, earning a score of 63/100. This is up from 11.3% the prior year.
Zoom Communications Inc scores 10.25, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($29.4B) relative to total liabilities ($2.2B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Zoom Communications Inc passes 5 of 7 computable financial strength tests (2 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Zoom Communications Inc generates $1.05 in operating cash flow ($2.0B OCF vs $1.9B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Zoom Communications Inc generated $4.9B in revenue in fiscal year 2026. This represents an increase of 4.4% from the prior year.
Zoom Communications Inc's EBITDA was $1.3B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 34.2% from the prior year.
Zoom Communications Inc reported $1.9B in net income in fiscal year 2026. This represents an increase of 88.1% from the prior year.
Zoom Communications Inc earned $6.18 per diluted share (EPS) in fiscal year 2026. This represents an increase of 92.5% from the prior year.
Cash & Balance Sheet
Zoom Communications Inc generated $1.9B in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 6.4% from the prior year.
Zoom Communications Inc held $1.3B in cash as of fiscal year 2026; long-term debt is not reported for that period.
Not reported for fiscal year 2026.
Margins & Returns
Zoom Communications Inc's gross margin was 77.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.2 percentage points from the prior year.
Zoom Communications Inc's operating margin was 23.1% in fiscal year 2026, reflecting core business profitability. This is up 5.6 percentage points from the prior year.
Zoom Communications Inc's net profit margin was 39.0% in fiscal year 2026, showing the share of revenue converted to profit. This is up 17.4 percentage points from the prior year.
Zoom Communications Inc's ROE was 19.4% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 8.1 percentage points from the prior year.
Capital Allocation
Zoom Communications Inc invested $844.9M in research and development in fiscal year 2026. This represents a decrease of 0.9% from the prior year.
Zoom Communications Inc spent $1.6B on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 48.2% from the prior year.
Zoom Communications Inc invested $65.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 52.4% from the prior year.
ZM Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.3B+3.1% | $1.2B-0.6% | $1.2B+1.4% | $1.2B+1.0% | $1.2B+3.6% | $1.2B-0.8% | $1.2B+0.6% | $1.2B |
| Cost of Revenue | $291.7M+6.4% | $274.3M-7.2% | $295.7M+8.8% | $271.8M-0.5% | $273.2M-1.9% | $278.4M-3.1% | $287.4M+1.2% | $283.9M |
| Gross Profit | $985.5M+2.2% | $964.7M+1.4% | $951.3M-0.7% | $958.1M+1.5% | $944.1M+5.3% | $896.3M-0.1% | $896.8M+0.3% | $893.7M |
| R&D Expenses | $242.5M+6.4% | $227.9M+2.2% | $222.9M+6.1% | $210.1M+1.8% | $206.4M+0.5% | $205.4M-5.4% | $217.1M-2.6% | $223.0M |
| SG&A Expenses | $98.2M+2.0% | $96.3M-19.1% | $119.0M+25.6% | $94.7M+23.2% | $76.9M-24.9% | $102.3M+6.9% | $95.7M-24.1% | $126.1M |
| Operating Income | $314.3M+1.2% | $310.5M+24.2% | $249.9M-19.5% | $310.4M-3.5% | $321.7M+33.2% | $241.6M+7.3% | $225.1M+23.1% | $182.8M |
| Income Tax | $452.5M+327.1% | $105.9M-44.1% | $189.6M+4.3% | $181.8M+103.0% | $89.6M+46.4% | $61.2M-25.8% | $82.5M+12.4% | $73.4M |
| Net Income | $1.5B+262.4% | $425.7M-36.9% | $674.1M+10.0% | $612.9M+70.9% | $358.6M+40.8% | $254.6M-30.8% | $367.9M+77.7% | $207.1M |
| EPS (Diluted) | $5.15+262.7% | $1.42-35.7% | $2.21+10.0% | $2.01+73.3% | $1.16+43.2% | $0.81-30.8% | $1.17+77.3% | $0.66 |
Not reported in any period shown, so not listed: Interest Expense.
ZM Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $13.6B+11.7% | $12.2B+1.7% | $12.0B+5.0% | $11.4B+3.1% | $11.0B+0.8% | $11.0B-0.3% | $11.0B+2.9% | $10.7B |
| Current Assets | $8.1B-5.4% | $8.6B-1.0% | $8.7B-0.7% | $8.7B+0.6% | $8.7B0.0% | $8.7B-0.1% | $8.7B+1.7% | $8.5B |
| Cash & Equivalents | $932.0M+4.6% | $890.9M-30.0% | $1.3B+4.7% | $1.2B+1.4% | $1.2B-2.5% | $1.2B-8.9% | $1.3B+5.9% | $1.3B |
| Accounts Receivable | $533.0M+13.9% | $467.8M-5.9% | $497.3M+19.1% | $417.7M-19.2% | $516.8M+8.3% | $477.2M-3.6% | $495.2M+8.1% | $458.0M |
| Goodwill | $599.2M+49.6% | $400.4M0.0% | $400.4M+30.3% | $307.3M0.0% | $307.3M0.0% | $307.3M0.0% | $307.3M0.0% | $307.3M |
| Total Liabilities | $2.3B+4.1% | $2.2B+1.8% | $2.2B+2.3% | $2.1B+0.5% | $2.1B+2.2% | $2.0B-0.2% | $2.1B+2.7% | $2.0B |
| Current Liabilities | $2.1B+4.4% | $2.0B+1.6% | $2.0B+2.0% | $2.0B+0.6% | $1.9B+2.7% | $1.9B-0.3% | $1.9B+2.7% | $1.9B |
| Total Equity | $11.3B+13.4% | $10.0B+1.7% | $9.8B+5.6% | $9.3B+3.8% | $9.0B+0.5% | $8.9B-0.4% | $8.9B+2.9% | $8.7B |
| Retained Earnings | $7.7B+25.2% | $6.1B+7.5% | $5.7B+13.4% | $5.0B+13.9% | $4.4B+8.8% | $4.1B+6.7% | $3.8B+10.7% | $3.4B |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
ZM Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $494.8M-5.1% | $521.6M+47.1% | $354.5M-43.7% | $629.3M+22.0% | $515.9M+5.5% | $489.3M+15.2% | $424.6M-12.1% | $483.2M |
| Capital Expenditures | $22.4M+5.9% | $21.1M+31.3% | $16.1M+7.1% | $15.0M+88.4% | $8.0M-69.3% | $25.9M+210.9% | $8.3M-67.3% | $25.5M |
| Free Cash Flow | $472.4M-5.6% | $500.5M+47.9% | $338.4M-44.9% | $614.3M+20.9% | $508.0M+9.6% | $463.4M+11.3% | $416.2M-9.1% | $457.7M |
| Investing Cash Flow | -$73.5M+84.7% | -$480.7M-1037.6% | $51.3M+135.5% | -$144.4M-137.9% | -$60.7M+51.5% | -$125.1M-2461.0% | -$4.9M+98.9% | -$452.4M |
| Financing Cash Flow | -$401.1M-1.8% | -$394.1M-11.4% | -$353.9M+24.1% | -$466.1M+5.8% | -$494.9M-0.9% | -$490.5M-49.1% | -$329.0M-9.5% | -$300.4M |
| Share Buybacks | $360.5M-0.3% | $361.7M+11.7% | $323.7M-21.8% | $413.7M-11.1% | $465.3M+11.3% | $418.0M+17.9% | $354.6M+17.6% | $301.6M |
Not reported in any period shown, so not listed: Dividends Paid.
ZM Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q2'27 | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.2%-0.7pp | 77.9%+1.6pp | 76.3%-1.6pp | 77.9%+0.3pp | 77.6%+1.3pp | 76.3%+0.6pp | 75.7%-0.2pp | 75.9% |
| Operating Margin | 24.6%-0.4pp | 25.1%+5.0pp | 20.0%-5.2pp | 25.2%-1.2pp | 26.4%+5.9pp | 20.6%+1.6pp | 19.0%+3.5pp | 15.5% |
| Net Margin | 120.8% | 34.4%-19.7pp | 54.1%+4.2pp | 49.8%+20.4pp | 29.5%+7.8pp | 21.7%-9.4pp | 31.1%+13.5pp | 17.6% |
| Return on Equity | 13.7%+9.4pp | 4.3%-2.6pp | 6.9%+0.3pp | 6.6%+2.6pp | 4.0%+1.1pp | 2.9%-1.3pp | 4.1%+1.7pp | 2.4% |
| Return on Assets | 11.3%+7.8pp | 3.5%-2.1pp | 5.6%+0.3pp | 5.4%+2.1pp | 3.3%+0.9pp | 2.3%-1.0pp | 3.4%+1.4pp | 1.9% |
| Current Ratio | 3.83-0.4x | 4.22-0.1x | 4.33-0.1x | 4.450.0x | 4.45-0.1x | 4.570.0x | 4.560.0x | 4.60 |
| Debt-to-Equity | 0.200.0x | 0.220.0x | 0.220.0x | 0.230.0x | 0.230.0x | 0.230.0x | 0.230.0x | 0.23 |
| FCF Margin | 37.0%-3.4pp | 40.4%+13.3pp | 27.1%-22.8pp | 50.0%+8.2pp | 41.7%+2.3pp | 39.4%+4.3pp | 35.1%-3.7pp | 38.9% |
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Net Margin.
Similar Companies
Where Zoom Communications Inc Ranks
Frequently Asked Questions
What is Zoom Communications Inc's annual revenue?
Zoom Communications Inc (ZM) reported $4.9B in total revenue for fiscal year 2026. This represents a 4.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Zoom Communications Inc's revenue growing?
Zoom Communications Inc (ZM) revenue grew by 4.4% year-over-year, from $4.7B to $4.9B in fiscal year 2026.
Is Zoom Communications Inc profitable?
Yes, Zoom Communications Inc (ZM) reported a net income of $1.9B in fiscal year 2026, with a net profit margin of 39.0%.
What is Zoom Communications Inc's EBITDA?
Zoom Communications Inc (ZM) had EBITDA of $1.3B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is Zoom Communications Inc's gross margin?
Zoom Communications Inc (ZM) had a gross margin of 77.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Zoom Communications Inc's operating margin?
Zoom Communications Inc (ZM) had an operating margin of 23.1% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Zoom Communications Inc's net profit margin?
Zoom Communications Inc (ZM) had a net profit margin of 39.0% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Zoom Communications Inc's return on equity (ROE)?
Zoom Communications Inc (ZM) has a return on equity of 19.4% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Zoom Communications Inc's free cash flow?
Zoom Communications Inc (ZM) generated $1.9B in free cash flow during fiscal year 2026. This represents a 6.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Zoom Communications Inc's operating cash flow?
Zoom Communications Inc (ZM) generated $2.0B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Zoom Communications Inc's total assets?
Zoom Communications Inc (ZM) had $12.0B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Zoom Communications Inc's capital expenditures?
Zoom Communications Inc (ZM) invested $65.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Zoom Communications Inc spend on research and development?
Zoom Communications Inc (ZM) invested $844.9M in research and development during fiscal year 2026.
What is Zoom Communications Inc's current ratio?
Zoom Communications Inc (ZM) had a current ratio of 4.33 as of fiscal year 2026, which is generally considered healthy.
What is Zoom Communications Inc's debt-to-equity ratio?
Zoom Communications Inc (ZM) had a debt-to-equity ratio of 0.22 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Zoom Communications Inc's return on assets (ROA)?
Zoom Communications Inc (ZM) had a return on assets of 15.9% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Zoom Communications Inc's Altman Z-Score?
Zoom Communications Inc (ZM) has an Altman Z-Score of 10.25, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Zoom Communications Inc's Piotroski F-Score?
Zoom Communications Inc (ZM) has a Piotroski F-Score of 5 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Zoom Communications Inc's earnings high quality?
Zoom Communications Inc (ZM) has an earnings quality ratio of 1.05x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Zoom Communications Inc?
Zoom Communications Inc (ZM) scores 74 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.