What is Zoom Communications, Inc.'s earnings per share (EPS)?

Zoom Communications, Inc. (ZM) reported diluted earnings per share of $6.18 for fiscal year 2026. This represents a 92.5% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Zoom Communications, Inc. (ZM) Financials

Trailing 12 months to July 31, 2026

Revenue $5.0B +5.0% YoY

Net Income $3.3B +174.0% YoY

EPS (Diluted) $10.79 +183.9% YoY

Free Cash Flow $1.9B +4.4% YoY

Market Cap $28.6B as of Oct 12, 2026

Price / Sales 5.7x on $5.0B revenue, trailing 12 months to July 31, 2026

Price / Earnings 8.8x on $3.3B net income, trailing 12 months to July 31, 2026

Price / Book 2.5x on $11.3B equity, Q2 FY2027

A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 12, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2027, ended Jul 31, 2026 Reported Aug 26, 2026 Currency USD FYE January

Newest figures come from the 10-Q for Q2 FY2027, filed Aug 26, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ZM SEC filings page.

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).

Rhea AI ZM FY2026 2026-10-04

Zoom converts modest revenue growth into sharply higher profits and cash while returning much of its internally generated funds through buybacks.

Revenue reached $4.9B in FY2026, yet operating margin reached 23.1%, indicating that expansion is reaching profit faster than sales. Gross margin was 77.0% while selling and administrative expense fell to $393M, so the margin step-up is more consistent with cost discipline and operating efficiency than with scale alone.

Cash conversion remained closely aligned with reported earnings: FY2026 operating cash flow was $2.0B against net income of $1.9B. Free cash flow was $1.9B while capital expenditures were only $65M, showing that the business currently requires limited reinvestment to produce cash.

The balance sheet is structured conservatively, with $2.2B of liabilities against $12.0B of assets. A 4.3x current ratio alongside $1.6B of share repurchases indicates that ample liquidity is being directed toward capital returns rather than debt reduction.

Financial Health Signals

Financial Health Score 74/100

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.

Profitability

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.

Growth

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 44/100.

Leverage

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 74/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

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 89/100.

Cash Flow

Zoom Communications, Inc. converts 39.5% of revenue into free cash flow ($1.9B). This strong cash generation earns a score of 97/100.

Returns

Zoom Communications, Inc.'s ROE of 19.4% shows moderate profitability relative to equity, earning a score of 62/100. This is up from 11.3% the prior year.

Altman Z-Score Safe

10.02

Zoom Communications, Inc. scores 10.02, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($28.6B) 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.

Piotroski F-Score Partial

5/7

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.

Earnings Quality Cash-Backed

1.05x

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

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Earnings & Revenue

Revenue

$1.3B

YoY+4.9%

QoQ+3.1%

5Y CAGR+4.6%

Zoom Communications, Inc. generated $1.3B in revenue in Q2 2027. This represents an increase of 4.9% from the same quarter a year earlier. Against the prior quarter it is up 3.1%.

EBITDA

$341.6M

YoY-2.6%

QoQ-0.5%

5Y CAGR+2.2%

Zoom Communications, Inc.'s EBITDA was $341.6M in Q2 2027, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 2.6% from the same quarter a year earlier. Against the prior quarter it is down 0.5%.

Net Income

$1.5B

YoY+330.1%

QoQ+262.4%

5Y CAGR+37.2%

Zoom Communications, Inc. reported $1.5B in net income in Q2 2027. This represents an increase of 330.1% from the same quarter a year earlier. Against the prior quarter it is up 262.4%.

EPS (Diluted)

$5.15

YoY+344.0%

QoQ+262.7%

5Y CAGR+37.7%

Zoom Communications, Inc. earned $5.15 per diluted share (EPS) in Q2 2027. This represents an increase of 344.0% from the same quarter a year earlier. Against the prior quarter it is up 262.7%.

Cash & Balance Sheet

Free Cash Flow

$472.4M

YoY-7.0%

QoQ-5.6%

5Y CAGR+0.8%

Zoom Communications, Inc. generated $472.4M in free cash flow in Q2 2027, representing cash available after capex. This represents a decrease of 7.0% from the same quarter a year earlier. Against the prior quarter it is down 5.6%.

Cash & Debt

$932.0M

YoY-22.2%

QoQ+4.6%

5Y CAGR-13.6%

Zoom Communications, Inc. held $932.0M in cash as of Q2 2027; long-term debt is not reported for that period.

Shares Outstanding

Diluted avg 300M

Zoom Communications, Inc. had a weighted average of 300M diluted shares in Q2 2027; the shares outstanding count is not reported for that period.

Dividends Per Share

Not reported for Q2 2027.

Margins & Returns

Gross Margin

77.2%

YoY-0.4pp

QoQ-0.7pp

5Y change+2.7pp

Zoom Communications, Inc.'s gross margin was 77.2% in Q2 2027, indicating the percentage of revenue retained after direct costs. This is down 0.4 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.7 percentage points.

Operating Margin

24.6%

YoY-1.8pp

QoQ-0.4pp

5Y change-4.2pp

Zoom Communications, Inc.'s operating margin was 24.6% in Q2 2027, reflecting core business profitability. This is down 1.8 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.4 percentage points.

Return on Equity

13.7%

YoY+9.6pp

QoQ+9.4pp

5Y change+6.8pp

Zoom Communications, Inc.'s ROE was 13.7% in Q2 2027, measuring profit generated per dollar of shareholder equity. This is up 9.6 percentage points from the same quarter a year earlier. Against the prior quarter it is up 9.4 percentage points.

Net Margin

Not shown for Q2 2027: the reported ratio is above 100.0% of revenue, so it does not read as a share of revenue.

Capital Allocation

R&D Spending

$242.5M

YoY+17.5%

QoQ+6.4%

5Y CAGR+24.1%

Zoom Communications, Inc. invested $242.5M in research and development in Q2 2027. This represents an increase of 17.5% from the same quarter a year earlier. Against the prior quarter it is up 6.4%.

Share Buybacks

$360.5M

YoY-22.5%

QoQ-0.3%

Zoom Communications, Inc. spent $360.5M on share buybacks in Q2 2027, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 22.5% from the same quarter a year earlier. Against the prior quarter it is down 0.3%.

Capital Expenditures

$22.4M

YoY+180.6%

QoQ+5.9%

5Y CAGR+11.5%

Zoom Communications, Inc. invested $22.4M in capex in Q2 2027, funding long-term assets and infrastructure. This represents an increase of 180.6% from the same quarter a year earlier. Against the prior quarter it is up 5.9%.

ZM Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

ZM quarterly income statement

Metric	TTM	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Revenue	$5.0B	$4.9B+4.4%	$4.7B+3.1%	$4.5B+3.1%	$4.4B+7.1%	$4.1B+54.6%	$2.7B+325.8%	$622.7M+88.4%	$330.5M+118.2%	$151.5M
Cost of Revenue	$1.1B	$1.1B-0.9%	$1.1B+4.8%	$1.1B-2.1%	$1.1B+4.4%	$1.1B+28.3%	$822.0M+612.3%	$115.4M+89.2%	$61.0M+98.2%	$30.8M
Gross Profit	$3.9B	$3.7B+6.1%	$3.5B+2.5%	$3.4B+4.8%	$3.3B+8.1%	$3.0B+66.5%	$1.8B+260.6%	$507.3M+88.2%	$269.5M+123.3%	$120.7M
R&D Expenses	$903.4M	$844.9M-0.9%	$852.4M+6.1%	$803.2M+3.8%	$774.1M+113.2%	$363.0M+121.2%	$164.1M+144.6%	$67.1M+103.2%	$33.0M+109.8%	$15.7M
SG&A Expenses	$408.1M	$392.9M-11.2%	$442.7M-23.6%	$579.6M+0.6%	$576.4M+19.4%	$482.8M+50.6%	$320.5M+269.1%	$86.8M+95.1%	$44.5M+64.3%	$27.1M
Operating Income	$1.2B	$1.1B+38.2%	$813.3M+54.8%	$525.3M+114.0%	$245.4M-76.9%	$1.1B+61.2%	$659.8M+5097.3%	$12.7M+105.9%	$6.2M+227.6%	-$4.8M
EBITDA	N/A	$1.3B+34.2%	$935.9M+48.6%	$629.7M+92.1%	$327.8M-70.5%	$1.1B+61.4%	$688.7M+2263.0%	$29.1M+121.2%	$13.2M+743.6%	-$2.0M
Interest Expense	N/A	N/A	N/A	N/A	N/A	$5.7M	N/A	N/A	N/A	N/A
Income Tax	$929.9M	$522.1M+71.0%	$305.3M+56.7%	$194.8M+33.9%	$145.6M+153.1%	-$274.0M-4892.0%	$5.7M+441.0%	$1.1M+38.2%	$765K+151.6%	$304K
Net Income	$3.3B	$1.9B+88.1%	$1.0B+58.5%	$637.5M+514.7%	$103.7M-92.5%	$1.4B+104.6%	$672.3M+2556.9%	$25.3M+233.7%	$7.6M+298.4%	-$3.8M
EPS (Basic)	N/A	$6.32+92.7%	$3.28+54.7%	$2.12+505.7%	$0.35-92.5%	$4.64+95.8%	$2.37+2533.3%	$0.09	$0.00+100.0%	-$0.11
EPS (Diluted)	$10.79	$6.18+92.5%	$3.21+55.1%	$2.07+508.8%	$0.34-92.4%	$4.50+100.0%	$2.25+2400.0%	$0.09	$0.00+100.0%	-$0.11
Diluted Shares (Avg)	N/A	307M-2.5%	315M+2.1%	309M+1.4%	304M-0.5%	306M+2.6%	298M+17.2%	254M+119.2%	116M+48.5%	78M

Metric	Q2'2710-Q	Q1'2710-Q	Q4'2610-Q	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q
Revenue	$1.3B+4.9%	$1.2B+5.5%	$1.2B+5.3%	$1.2B+4.4%	$1.2B+4.7%	$1.2B+2.9%	$1.2B+3.3%	$1.2B+3.6%
Cost of Revenue	$291.7M+6.8%	$274.3M-1.5%	$295.7M+2.9%	$271.8M-4.3%	$273.2M-4.2%	$278.4M+1.9%	$287.4M+4.0%	$283.9M+4.8%
Gross Profit	$985.5M+4.4%	$964.7M+7.6%	$951.3M+6.1%	$958.1M+7.2%	$944.1M+7.6%	$896.3M+3.3%	$896.8M+3.1%	$893.7M+3.2%
R&D Expenses	$242.5M+17.5%	$227.9M+11.0%	$222.9M+2.7%	$210.1M-5.8%	$206.4M-0.1%	$205.4M-0.1%	$217.1M+5.8%	$223.0M+13.3%
SG&A Expenses	$98.2M+27.7%	$96.3M-5.9%	$119.0M+24.3%	$94.7M-24.9%	$76.9M-29.8%	$102.3M-8.1%	$95.7M-23.6%	$126.1M+0.8%
Operating Income	$314.3M-2.3%	$310.5M+28.5%	$249.9M+11.0%	$310.4M+69.8%	$321.7M+59.0%	$241.6M+19.0%	$225.1M+33.5%	$182.8M+7.9%
EBITDA	$341.6M-2.6%	$343.3M+24.0%	$289.4M+8.6%	$339.5M+60.3%	$350.6M+53.7%	$276.9M+20.6%	$266.4M+31.4%	$211.7M+9.8%
Income Tax	$452.5M+405.2%	$105.9M+73.2%	$189.6M+129.9%	$181.8M+147.9%	$89.6M+21.2%	$61.2M-19.2%	$82.5M+52.5%	$73.4M+64.4%
Net Income	$1.5B+330.1%	$425.7M+67.2%	$674.1M+83.2%	$612.9M+196.0%	$358.6M+63.7%	$254.6M+17.7%	$367.9M+23.1%	$207.1M+46.6%
EPS (Basic)	$5.27+342.9%	$1.45+72.6%	$2.26+88.3%	$2.05+206.0%	$1.19+67.6%	$0.84+20.0%	$1.20+21.2%	$0.67+42.6%
EPS (Diluted)	$5.15+344.0%	$1.42+75.3%	$2.21+88.9%	$2.01+204.5%	$1.16+65.7%	$0.81+17.4%	$1.17+20.6%	$0.66+46.7%
Diluted Shares (Avg)	300M-2.8%	300M-4.0%	N/A	305M-2.9%	308M-1.8%	313M-0.8%	N/A	314M+1.2%

Not reported in any period shown, so not listed: Interest Expense.

ZM Balance Sheet

ZM quarterly balance sheet

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Total Assets	$12.0B+8.8%	$11.0B+10.7%	$9.9B+22.2%	$8.1B+7.6%	$7.6B+42.5%	$5.3B+310.7%	$1.3B+263.8%	$354.6M	N/A
Current Assets	$8.7B-0.2%	$8.7B+9.5%	$7.9B+24.7%	$6.4B+2.8%	$6.2B+29.0%	$4.8B+337.5%	$1.1B+295.9%	$276.7M	N/A
Cash & Equivalents	$1.3B-5.7%	$1.3B-13.4%	$1.6B+43.4%	$1.1B+2.3%	$1.1B-52.6%	$2.2B+691.3%	$283.1M+345.0%	$63.6M+76.0%	$36.1M
Short-Term Investments	$6.5B+1.6%	$6.4B+19.2%	$5.4B+24.9%	$4.3B-0.7%	$4.4B+117.3%	$2.0B+250.4%	$572.1M+407.2%	$112.8M	$0
Accounts Receivable	$497.3M+0.4%	$495.2M-7.6%	$536.1M-3.8%	$557.4M+32.8%	$419.7M+42.4%	$294.7M+144.7%	$120.4M+89.3%	$63.6M	N/A
Long-Term Investments	$4.0M-10.8%	$4.5M-98.9%	$409.2M+2.6%	$399.0M+8.5%	$367.8M+1870.3%	$18.7M	$0	$0	$0
Goodwill	$400.4M+30.3%	$307.3M0.0%	$307.3M+150.6%	$122.6M+344.2%	$27.6M+13.4%	$24.3M	$0	N/A	N/A
Total Liabilities	$2.2B+4.8%	$2.1B+7.5%	$1.9B-0.6%	$1.9B+8.5%	$1.8B+23.2%	$1.4B+215.2%	$455.9M+25.9%	$362.0M	N/A
Current Liabilities	$2.0B+5.0%	$1.9B+8.0%	$1.8B+1.4%	$1.7B+10.1%	$1.6B+25.4%	$1.3B+277.4%	$333.8M+119.1%	$152.3M	N/A
Non-Current Liabilities	$153.0M+1.9%	$150.0M+1.2%	$148.2M-18.9%	$182.8M-4.6%	$191.6M+8.1%	$177.3M+45.2%	$122.1M-41.8%	$209.7M	N/A
Total Equity	$9.8B+9.8%	$8.9B+11.4%	$8.0B+29.2%	$6.2B+7.4%	$5.8B+49.7%	$3.9B+363.0%	$833.9M+11310.4%	-$7.4M+72.1%	-$26.7M
Retained Earnings	$5.7B+50.0%	$3.8B+36.2%	$2.8B+29.6%	$2.2B+5.1%	$2.0B+204.6%	$672.5M+442313.2%	$152K+100.6%	-$25.2M	N/A

Metric	Q2'2710-Q	Q1'2710-Q	Q4'2610-Q	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q
Total Assets	$13.6B+23.0%	$12.2B+11.0%	$12.0B+8.8%	$11.4B+6.7%	$11.0B+5.1%	$11.0B+6.4%	$11.0B+10.7%	$10.7B+14.6%
Current Assets	$8.1B-6.3%	$8.6B-1.1%	$8.7B-0.2%	$8.7B+2.1%	$8.7B+3.2%	$8.7B+4.6%	$8.7B+9.5%	$8.5B+14.0%
Cash & Equivalents	$932.0M-22.2%	$890.9M-27.5%	$1.3B-5.7%	$1.2B-4.5%	$1.2B-22.1%	$1.2B-34.8%	$1.3B-13.4%	$1.3B-14.7%
Short-Term Investments	$6.3B-4.0%	$6.8B+4.1%	$6.5B+1.6%	$6.7B	$6.6B	$6.6B	$6.4B+19.2%	$0
Accounts Receivable	$533.0M+3.1%	$467.8M-2.0%	$497.3M+0.4%	$417.7M-8.8%	$516.8M-2.2%	$477.2M-9.5%	$495.2M-7.6%	$458.0M-10.9%
Long-Term Investments	$4.0M-99.4%	$4.0M-99.3%	$4.0M-10.8%	$4.0M-99.1%	$647.9M+47.7%	$576.1M+35.6%	$4.5M-98.9%	$444.7M+26.0%
Goodwill	$599.2M+95.0%	$400.4M+30.3%	$400.4M+30.3%	$307.3M0.0%	$307.3M0.0%	$307.3M0.0%	$307.3M0.0%	$307.3M0.0%
Total Liabilities	$2.3B+9.0%	$2.2B+6.9%	$2.2B+4.8%	$2.1B+5.2%	$2.1B+5.7%	$2.0B+2.6%	$2.1B+7.5%	$2.0B+5.0%
Current Liabilities	$2.1B+8.9%	$2.0B+7.1%	$2.0B+5.0%	$2.0B+5.7%	$1.9B+5.8%	$1.9B+2.2%	$1.9B+8.0%	$1.9B+5.7%
Non-Current Liabilities	$160.4M+9.7%	$159.3M+4.7%	$153.0M+1.9%	$144.5M-1.4%	$146.3M+4.1%	$152.2M+7.2%	$150.0M+1.2%	$146.6M-3.0%
Total Equity	$11.3B+26.3%	$10.0B+12.0%	$9.8B+9.8%	$9.3B+7.0%	$9.0B+5.0%	$8.9B+7.3%	$8.9B+11.4%	$8.7B+17.1%
Retained Earnings	$7.7B+73.8%	$6.1B+51.1%	$5.7B+50.0%	$5.0B+46.4%	$4.4B+36.8%	$4.1B+34.9%	$3.8B+36.2%	$3.4B+37.8%

Not reported in any period shown, so not listed: Inventory, Long-Term Debt.

ZM Cash Flow Statement

ZM quarterly cash flow statement

Metric	TTM	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Operating Cash Flow	$2.0B	$2.0B+2.2%	$1.9B+21.7%	$1.6B+23.9%	$1.3B-19.6%	$1.6B+9.1%	$1.5B+868.6%	$151.9M+195.9%	$51.3M+164.2%	$19.4M
Depreciation & Amortization	N/A	$132.8M+8.3%	$122.6M+17.4%	$104.5M+26.9%	$82.3M+70.8%	$48.2M+67.0%	$28.9M+75.4%	$16.4M+134.7%	$7.0M+151.5%	$2.8M
Stock-Based Compensation	N/A	$760.8M-18.3%	$931.3M-11.9%	$1.1B-17.8%	$1.3B+169.4%	$477.3M+73.0%	$275.8M+277.3%	$73.1M+717.7%	$8.9M-13.4%	$10.3M
Capital Expenditures	$74.6M	$65.0M-52.4%	$136.6M+7.6%	$127.0M+22.3%	$103.8M-21.7%	$132.6M+65.8%	$80.0M+110.0%	$38.1M+33.9%	$28.4M+192.0%	$9.7M
Free Cash Flow	$1.9B	$1.9B+6.4%	$1.8B+22.9%	$1.5B+24.1%	$1.2B-19.4%	$1.5B+5.9%	$1.4B+1122.4%	$113.8M+397.0%	$22.9M+136.4%	$9.7M
Investing Cash Flow	-$647.3M	-$278.9M+74.8%	-$1.1B+6.6%	-$1.2B-271.9%	-$318.3M+88.9%	-$2.9B-83.0%	-$1.6B-212.8%	-$499.5M-1157.5%	-$39.7M+65.0%	-$113.4M
Financing Cash Flow	-$1.6B	-$1.8B-75.6%	-$1.0B-1808.2%	$60.2M+106.4%	-$936.9M-2850.2%	$34.1M-98.3%	$2.1B+233.0%	$615.7M+3411.4%	$17.5M+538.7%	-$4.0M
Share Buybacks	$1.5B	$1.6B+48.2%	$1.1B	$0-100.0%	$1.0B	$0	$0	N/A	N/A	N/A

Metric	Q2'2710-Q	Q1'2710-Q	Q4'2610-Q	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q
Operating Cash Flow	$494.8M-4.1%	$521.6M+6.6%	$354.5M-16.5%	$629.3M+30.2%	$515.9M+14.8%	$489.3M-16.8%	$424.6M+20.9%	$483.2M-2.0%
Depreciation & Amortization	$27.3M-5.5%	$32.8M-7.2%	$33.0M-4.7%	$29.1M+0.7%	$28.9M+12.5%	$35.3M+32.4%	$34.6M+26.8%	$28.9M+23.0%
Stock-Based Compensation	$179.8M-4.7%	$179.0M-11.2%	N/A	$185.3M-23.1%	$188.7M-20.7%	$201.6M-12.1%	N/A	$241.0M-6.9%
Capital Expenditures	$22.4M+180.6%	$21.1M-18.5%	$16.1M+92.9%	$15.0M-41.1%	$8.0M-90.5%	$25.9M+40.0%	$8.3M-55.0%	$25.5M-36.3%
Free Cash Flow	$472.4M-7.0%	$500.5M+8.0%	$338.4M-18.7%	$614.3M+34.2%	$508.0M+39.1%	$463.4M-18.7%	$416.2M+25.1%	$457.7M+1.0%
Investing Cash Flow	-$73.5M-21.2%	-$480.7M-284.2%	$51.3M+1149.4%	-$144.4M+68.1%	-$60.7M+88.8%	-$125.1M-16.1%	-$4.9M+98.5%	-$452.4M-24.2%
Financing Cash Flow	-$401.1M+18.9%	-$394.1M+19.7%	-$353.9M-7.6%	-$466.1M-55.1%	-$494.9M-93.1%	-$490.5M-244.3%	-$329.0M-1457.5%	-$300.4M-5355.7%
Share Buybacks	$360.5M-22.5%	$361.7M-13.5%	$323.7M-8.7%	$413.7M+37.2%	$465.3M+61.7%	$418.0M+178.6%	$354.6M	$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. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

ZM quarterly financial ratios

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Gross Margin	77.0%+1.2pp	75.8%-0.4pp	76.2%+1.2pp	75.0%+0.7pp	74.3%+5.3pp	69.0%-12.5pp	81.5%-0.1pp	81.5%+1.9pp	79.7%
Operating Margin	23.1%+5.6pp	17.4%+5.8pp	11.6%+6.0pp	5.6%-20.4pp	25.9%+1.1pp	24.9%+22.9pp	2.0%+0.2pp	1.9%+5.1pp	-3.2%
Net Margin	39.0%+17.4pp	21.6%+7.6pp	14.1%+11.7pp	2.4%-31.2pp	33.6%+8.2pp	25.4%+21.3pp	4.1%+1.8pp	2.3%+4.8pp	-2.5%
Return on Equity	19.4%+8.1pp	11.3%+3.4pp	8.0%+6.3pp	1.7%-22.1pp	23.8%+6.4pp	17.4%+14.4pp	3.0%	N/A	N/A
Return on Assets	15.9%+6.7pp	9.2%+2.8pp	6.4%+5.1pp	1.3%-16.9pp	18.2%+5.5pp	12.7%+10.7pp	2.0%-0.2pp	2.1%	N/A
Current Ratio	4.33-0.2x	4.56+0.1x	4.50+0.8x	3.66-0.3x	3.91+0.1x	3.80+0.5x	3.28+1.5x	1.82	N/A
Debt-to-Equity	0.220.0x	0.230.0x	0.24-0.1x	0.310.0x	0.31-0.1x	0.37-0.2x	0.55	N/A	N/A
Asset Turnover	0.410.0x	0.420.0x	0.46-0.1x	0.540.0x	0.540.0x	0.500.0x	0.48-0.4x	0.93	N/A
FCF Margin	39.5%+0.8pp	38.8%+6.3pp	32.5%+5.5pp	27.0%-8.9pp	35.9%-16.6pp	52.5%+34.2pp	18.3%+11.3pp	6.9%+0.5pp	6.4%

Metric	Q2'2710-Q	Q1'2710-Q	Q4'2610-Q	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q
Gross Margin	77.2%-0.4pp	77.9%+1.6pp	76.3%+0.6pp	77.9%+2.0pp	77.6%+2.1pp	76.3%+0.3pp	75.7%-0.2pp	75.9%-0.3pp
Operating Margin	24.6%-1.8pp	25.1%+4.5pp	20.0%+1.0pp	25.2%+9.7pp	26.4%+9.0pp	20.6%+2.8pp	19.0%+4.3pp	15.5%+0.6pp
Net Margin	120.8%	34.4%+12.7pp	54.1%+23.0pp	49.8%+32.3pp	29.5%+10.6pp	21.7%+2.7pp	31.1%+5.0pp	17.6%+5.2pp
Return on Equity	13.7%+9.6pp	4.3%+1.4pp	6.9%+2.7pp	6.6%+4.2pp	4.0%+1.4pp	2.9%+0.2pp	4.1%+0.4pp	2.4%+0.5pp
Return on Assets	11.3%+8.1pp	3.5%+1.2pp	5.6%+2.3pp	5.4%+3.4pp	3.3%+1.2pp	2.3%+0.2pp	3.4%+0.3pp	1.9%+0.4pp
Current Ratio	3.83-0.6x	4.22-0.3x	4.33-0.2x	4.45-0.2x	4.45-0.1x	4.57+0.1x	4.56+0.1x	4.60+0.3x
Debt-to-Equity	0.200.0x	0.220.0x	0.220.0x	0.230.0x	0.230.0x	0.230.0x	0.230.0x	0.230.0x
Asset Turnover	0.090.0x	0.100.0x	0.100.0x	0.110.0x	0.110.0x	0.110.0x	0.110.0x	0.110.0x
FCF Margin	37.0%-4.7pp	40.4%+1.0pp	27.1%-8.0pp	50.0%+11.1pp	41.7%+10.3pp	39.4%-10.5pp	35.1%+6.1pp	38.9%-1.0pp

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

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company	Fiscal year	Revenue	Net income	Net margin	Market cap	Health score
Zoom Communications, Inc. ZM	FY2026	$4.9B	$1.9B	39.0%	$28.6B	74/100
HUBSPOT, INC. HUBS	FY2025	$3.1B	$45.9M	1.5%	$11.4B	56/100
PTC, INC PTC	FY2025	$2.7B	$734.0M	26.8%	$21.1B	69/100
Tyler Technologies, Inc. TYL	FY2025	$2.3B	$315.6M	13.5%	$13.5B	69/100
SS&C Technologies Inc SSNC	FY2025	$6.3B	$798.7M	12.7%	$19.0B	59/100
GUIDEWIRE SOFTWARE, INC. GWRE	FY2026	$1.5B	$139.3M	9.4%	$13.7B	58/100

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.

Does Zoom Communications, Inc. buy back shares?

Yes, Zoom Communications, Inc. (ZM) spent $1.6B on share buybacks during fiscal year 2026, returning capital to shareholders by reducing shares outstanding.

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 P/E ratio?

Zoom Communications, Inc. (ZM) trades at 8.8x earnings, its market capitalization divided by net income of $3.3B net income, trailing 12 months to July 31, 2026. The market capitalization is $28.6B as of Oct 12, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Zoom Communications, Inc.'s price-to-sales ratio?

Zoom Communications, Inc. (ZM) trades at 5.7x sales, its market capitalization divided by revenue of $5.0B revenue, trailing 12 months to July 31, 2026. The market capitalization is $28.6B as of Oct 12, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Zoom Communications, Inc.'s Altman Z-Score?

Zoom Communications, Inc. (ZM) has an Altman Z-Score of 10.02, 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.