Zoom Crosses $5B Outlook, AI Products Drive Q4 Beat (ZM Q4 2026 Earnings Call)
Zoom Video Communications (ZM) closed out its fiscal year 2026 with a strong fourth-quarter performance, reporting revenue of $1.25 billion, an increase of 5.3% year-over-year. The quarter's results exceeded the high end of management's guidance, driven by robust performance in its Enterprise segment, which grew 7.1% year-over-year and now accounts for 61% of total revenue. For the full fiscal year 2026, Zoom generated $1.9 billion in free cash flow and achieved a non-GAAP operating margin of 40.4%. As the company aggressively pivots from a video conferencing tool into an "AI-first system of action," it has seen massive adoption of its AI Companion and surging growth in its Contact Center and Phone businesses. Looking ahead, Zoom provided confident fiscal 2027 guidance, forecasting that total revenue will cross the $5 billion milestone.