Zoom Communications (ZM.US) Reports Q3 2026 Revenue of $1.23 Billion, Exceeding Analyst Estimates

Zoom Communications (ZM.US) announced its financial results for the third fiscal quarter ended October 31, 2025, reporting total revenue of $1.23 billion. This figure represents a 4.4% year-over-year increase and surpasses the analyst estimate of $1.21 billion. The company also achieved non-GAAP diluted EPS of $1.52, an increase of 10.1% year-over-year, exceeding the analyst estimate of $1.43.

Key Business Drivers

The company's performance was driven by continued strength in its Enterprise segment, which saw revenue grow by 6.1% year-over-year to $741.4 million. This growth was supported by an increase in customers contributing more than $100,000 in trailing 12 months revenue, up 9.2% from the same quarter last fiscal year. The online average monthly churn remained flat year over year at 2.7%.

Zoom's focus on AI innovation also contributed to its results, with significant adoption of AI Companion 3.0 and strong momentum in Custom AI Companion and the AI-first Customer Experience suite. These initiatives helped the company achieve one of its best CX quarters, marked by broad AI adoption across major deals.

Management Outlook

Looking ahead, Zoom provided guidance for the fourth quarter of fiscal year 2026, expecting total revenue to be between $1.230 billion and $1.235 billion. For the full fiscal year 2026, the company anticipates total revenue to range from $4.852 billion to $4.857 billion. Non-GAAP diluted EPS for the full fiscal year is projected to be between $5.95 and $5.97.

The company also announced an additional $1.0 billion share repurchase authorization, incremental to the $310.4 million remaining as of October 31, 2025, underscoring its commitment to delivering shareholder value. This strategic move aims to lower dilution and is funded using Zoom's working capital.