Revenue growth has stabilized at a modest 5.5% as of 2027Q1, while the company maintains structural efficiency with a robust 77.9% gross margin.
| Sales/Revenue | 4.93B | 4.87B | 4.67B | 4.53B | 4.39B | 4.1B | 2.65B | 622.66M | 330.52M | 151.48M | 60.82M |
| Revenue Growth % | 4.98% | 4.36% | 3.05% | 3.06% | 7.15% | 54.63% | 325.81% | 88.39% | 118.19% | 149.07% | - |
| Cost of Goods Sold | 1.11B | 1.12B | 1.13B | 1.08B | 1.1B | 1.05B | 821.99M | 115.4M | 61M | 30.78M | 12.47M |
| COGS % of Revenue | - | 22.98% | 24.21% | 23.81% | 25.05% | 25.72% | 31% | 18.53% | 18.46% | 20.32% | 20.51% |
| Gross Profit | 3.82B | 3.75B | 3.54B | 3.45B | 3.29B | 3.05B | 1.83B | 507.26M | 269.52M | 120.7M | 48.34M |
| Gross Margin % | 77.4% | 77.02% | 75.79% | 76.19% | 74.95% | 74.28% | 69% | 81.47% | 81.54% | 79.68% | 79.49% |
| Gross Profit Growth % | - | 6.05% | 2.5% | 4.77% | 8.12% | 66.47% | 260.64% | 88.21% | 123.3% | 149.66% | - |
| Operating Expenses | 2.63B | 2.63B | 2.72B | 2.92B | 3.05B | 1.98B | 1.17B | 494.57M | 263.35M | 125.53M | 48.34M |
| OpEx % of Revenue | - | 53.94% | 58.35% | 64.59% | 69.36% | 48.34% | 44.11% | 79.43% | 79.68% | 82.87% | 79.49% |
| Selling, General & Admin | 1.76B | 1.78B | 1.87B | 2.12B | 2.27B | 1.62B | 1.01B | 427.49M | 230.34M | 109.8M | 39.13M |
| SG&A % of Revenue | - | 36.58% | 40.08% | 46.85% | 51.74% | 39.48% | 37.92% | 68.66% | 69.69% | 72.48% | 64.34% |
| Research & Development | 867.38M | 844.88M | 852.41M | 803.19M | 774.06M | 362.99M | 164.08M | 67.08M | 33.01M | 15.73M | 9.22M |
| R&D % of Revenue | - | 17.35% | 18.27% | 17.74% | 17.62% | 8.85% | 6.19% | 10.77% | 9.99% | 10.39% | 15.16% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | -5.72M | 0 | 0 | 345K | 74K | 60K |
| Operating Income | 1.19B | 1.12B | 813.29M | 525.28M | 245.43M | 1.06B | 659.85M | 12.7M | 6.17M | -4.83M | 0 |
| Operating Margin % | 24.17% | 23.08% | 17.43% | 11.6% | 5.59% | 25.94% | 24.89% | 2.04% | 1.87% | -3.19% | - |
| Operating Income Growth % | - | 38.16% | 54.83% | 114.02% | -76.92% | 61.19% | 5097.29% | 105.87% | 227.6% | - | - |
| EBITDA | 1.29B | 1.26B | 935.93M | 629.73M | 327.75M | 1.11B | 688.71M | 29.14M | 13.18M | -2.05M | 1.22M |
| EBITDA Margin % | 26.15% | 25.81% | 20.06% | 13.91% | 7.46% | 27.12% | 25.98% | 4.68% | 3.99% | -1.35% | 2% |
| EBITDA Growth % | 31.21% | 34.25% | 48.62% | 92.14% | -70.52% | 61.43% | 2263.03% | 121.21% | 743.62% | -267.92% | - |
| D&A (Non-Cash Add-back) | 97.52M | 132.83M | 122.63M | 104.45M | 82.32M | 48.19M | 28.86M | 16.45M | 7.01M | 2.79M | 1.22M |
| EBIT | 1.19B | 1.12B | 813.29M | 525.28M | 245.43M | 1.06B | 659.85M | 12.7M | 6.17M | -4.83M | 0 |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 18.19M | 13.67M | 2.18M | 1.31M | 98K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 18.19M | 13.67M | 2.18M | 1.31M | 98K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.45B | 1.3B | 502.29M | 307.03M | 3.85M | 38.04M | 18.19M | 13.67M | 2.18M | 1.31M | 158K |
| Pretax Income | 2.64B | 2.42B | 1.32B | 832.31M | 249.28M | 1.1B | 678.03M | 26.36M | 8.35M | -3.52M | 158K |
| Pretax Margin % | 53.48% | 49.75% | 28.2% | 18.38% | 5.67% | 26.87% | 25.57% | 4.23% | 2.53% | -2.32% | 0.26% |
| Income Tax | 566.92M | 522.14M | 305.35M | 194.85M | 145.56M | -274.01M | 5.72M | 1.06M | 765K | 304K | 172K |
| Effective Tax Rate % | 21.49% | 21.56% | 23.21% | 23.41% | 58.4% | -24.87% | 0.84% | 4.01% | 9.16% | -8.64% | 108.86% |
| Net Income | 2.07B | 1.9B | 1.01B | 637.46M | 103.71M | 1.38B | 672.32M | 25.3M | 7.58M | -3.82M | -14K |
| Net Margin % | 41.99% | 39.03% | 21.65% | 14.08% | 2.36% | 33.55% | 25.36% | 4.06% | 2.29% | -2.52% | -0.02% |
| Net Income Growth % | 97.54% | 88.09% | 58.48% | 514.65% | -92.46% | 104.61% | 2556.85% | 233.66% | 298.43% | -27200% | - |
| Net Income (Continuing) | 2.07B | 1.9B | 1.01B | 637.46M | 103.71M | 1.38B | 672.32M | 25.3M | 7.58M | -3.82M | -14K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.90 | 6.18 | 3.21 | 2.07 | 0.34 | 4.50 | 2.25 | 0.09 | 0.03 | -0.01 | -0.00 |
| EPS Growth % | 103.96% | 92.52% | 55.07% | 508.82% | -92.44% | 100% | 2531.58% | 203.19% | 298.59% | - | - |
| EPS (Basic) | - | 6.32 | 3.28 | 2.12 | 0.35 | 4.64 | 2.37 | 0.09 | 0.03 | -0.02 | -0.00 |
| Diluted Shares Outstanding | 300.23M | 307.33M | 315.07M | 308.52M | 304.23M | 305.83M | 298.13M | 254.3M | 268.8M | 268.8M | 268.8M |
| Basic Shares Outstanding | 294.43M | 300.5M | 307.98M | 300.75M | 296.56M | 296.33M | 283.85M | 233.64M | 268.8M | 237.28M | 237.28M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Vendor consolidation and saturation
According to recent financial disclosures, ZM's revenue growth has stabilized at a modest 4.36% to 5.5% range, signaling a transition from rapid pandemic-era expansion to a mature phase where the company struggles to find significant incremental growth beyond its existing enterprise customer base.
The deceleration in top-line growth suggests that the company has largely exhausted its initial land-grab phase and is now heavily reliant on retention and upsell strategies. Investors should monitor whether the shift toward multi-product bundles like Zoom One can effectively offset the stagnation in core video seat growth.
As reported in quarterly filings, ZM maintains a robust gross margin of approximately 77.02%, reflecting a highly efficient global traffic management architecture that continues to provide a competitive buffer despite increasing pricing pressure from bundled enterprise software alternatives in the broader UCaaS market.
This margin profile indicates that the company has successfully optimized its variable cloud hosting costs, though the intensity of AI-processing features may introduce future volatility. The ability to sustain these levels suggests that the company's proprietary video-first architecture remains a significant operational advantage.
Based on the provided income statement data, operating margins have fluctuated between 14.7% and 26.4%, indicating that ZM's operating leverage is currently hampered by the necessity of elevated SG&A spending to defend market share against aggressive competitors like Microsoft and Salesforce.
The lack of consistent operating margin expansion suggests that every dollar of gross profit is being heavily reinvested into customer acquisition and retention efforts. This dynamic warrants further investigation into whether the company can achieve meaningful scale efficiencies as it pivots toward its newer Phone and Contact Center offerings.
Financial statements reveal that ZM's net income is frequently bolstered by significant interest income and tax benefits, with net margins reaching as high as 54.1% in 2026Q4, which may mask the underlying operational performance and the impact of persistent stock-based compensation expenses.
The divergence between operating income and net income suggests that the company's bottom line is currently more sensitive to its cash-heavy balance sheet than to core operational improvements. Analysts should focus on calculated billings and operating cash flow to better assess the true health of the business.
As noted in industry analysis, the primary risk to ZM's income statement is the ongoing trend of vendor consolidation, where enterprise IT departments may favor bundled, 'free' alternatives like Microsoft Teams, potentially leading to long-term margin compression and a decline in net dollar expansion rates.
The company's reliance on share buybacks may be interpreted as a defensive capital allocation strategy in the absence of high-return internal growth opportunities. This strategy appears to prioritize shareholder returns over the aggressive R&D investment required to maintain a technological lead in a crowded collaboration market.
Quick answers to the most common questions about buying ZM stock.
For fiscal year 2026, Zoom Communications, Inc. (ZM) reported total revenue of $4.87B. This represents a 7905.6% increase compared to $60.8M in 2017.
Zoom Communications, Inc. (ZM) is profitable, generating $1.90B in net income for the fiscal year ending 2026 with a net profit margin of 39.0%.
Zoom Communications, Inc. (ZM) reported an operating income of $1.12B, resulting in an operating profit margin of 23.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Zoom Communications, Inc. (ZM) generated $3.75B in gross profit for the year, representing a gross profit margin of 77.0%. This demonstrates the company's core pricing power and production efficiency.