The raised guidance and $1B incremental buyback signal management confidence in sustained mid-single-digit revenue growth and margin expansion. Watch for continued Enterprise net dollar expansion improvement above 99% and AI monetization traction (AI Companion paid users +184% YoY) as key catalysts for further multiple expansion.
Price Chart
Executive Summary
Zoom reported Q1 FY2027 revenue of $1.239B (+5.5% YoY), slightly above the high end of guidance, and non-GAAP diluted EPS of $1.55, beating the consensus estimate of $1.42 by 9.2%. The company raised its full-year FY2027 revenue guidance to $5.080-$5.090B (from $5.065-$5.075B) and EPS guidance to $5.96-$6.00 (from $5.77-$5.81), while also authorizing an additional $1.0B in share repurchases. The combination of a modest revenue beat, raised guidance, expanding margins, and increased capital return supports a bullish read.
Key Financial Metrics
Key Facts
- Q1 FY2027 revenue of $1.239B, up 5.5% YoY, exceeding the high end of guidance ($1.220-$1.225B)
- Non-GAAP diluted EPS of $1.55 vs consensus $1.42 (9.2% beat); GAAP diluted EPS of $1.42 vs $0.81 YoY
- GAAP operating margin expanded 450 bps YoY to 25.1%; non-GAAP operating margin expanded 130 bps to 41.1%
- Full-year FY2027 revenue guidance raised to $5.080-$5.090B (from $5.065-$5.075B); EPS guidance raised to $5.96-$6.00 (from $5.77-$5.81)
- Board authorized an additional $1.0B in share repurchases, incremental to $625M remaining as of April 30, 2026
- Enterprise revenue grew 7.2% YoY to $755.7M; trailing 12-month net dollar expansion rate improved to 99% from 98%
- Free cash flow of $500.5M, up 8.0% YoY; operating cash flow of $521.6M, up 6.6% YoY
Financial Impact
Revenue beat of ~$17M vs guidance midpoint; EPS beat of $0.13 vs consensus; raised FY guidance by ~$15M revenue and ~$0.19 EPS midpoint
Risk Factors
- Online average monthly churn increased to 3.0% from 2.8% YoY, indicating potential pressure in the SMB segment
- Revenue growth remains modest at 5.5% YoY; constant currency growth was 4.6%, decelerating from Q4's 4.8%
- Full-year free cash flow guidance of $1.700-$1.740B implies a decline from FY2026's $1.924B, despite raised EPS guidance
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001585521-26-000069 |
| Document: zm-20260521.htm | 0001585521-26-000069 |
| Document: 0001585521-26-000069-index-headers.html | 0001585521-26-000069 |
| Document: 0001585521-26-000069-index.html | 0001585521-26-000069 |
| Document: 0001585521-26-000069.txt | 0001585521-26-000069 |
| 8-K Data (Synthetic) | 0001585521-26-000069 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | Insider Cluster | $95.57 $88.77 | ▼ −7.12% | ▼ −6.89% | $92.88 (−2.81%) |
Sep 10, 2026 22d ago | Insider Cluster | $95.57 $88.77 | ▼ −7.12% | ▼ −6.89% | $92.88 (−2.81%) |
Sep 2, 2026 4w ago | 8-K | $98.14 $95.57 | ▼ −2.62% | ▼ −1.47% | $92.88 (−5.36%) |
Aug 25, 2026 5w ago | Press Release | $93.83 $95.86 | ▲ +2.16% | ▲ +2.28% | $92.88 (−1.01%) |
Aug 14, 2026 7w ago | Insider Cluster | $105.56 $104.83 | ▼ −0.69% | ▲ +0.50% | $92.88 (−12.01%) |
Aug 7, 2026 8w ago | Insider Cluster | $107.20 $105.48 | ▼ −1.60% | ▼ −1.56% | $92.88 (−13.36%) |
Jul 22, 2026 10w ago | Press Release | $85.81 $92.41 | ▲ +7.69% | ▲ +10.09% | $92.88 (+8.24%) |
Jul 16, 2026 11w ago | Insider Cluster | $91.13 $84.11 | ▼ −7.70% | ▼ −7.02% | $92.88 (+1.92%) |
Jul 15, 2026 11w ago | Insider Cluster | $92.92 $84.11 | ▼ −9.48% | ▼ −7.81% | $92.88 (−0.04%) |
Jul 2, 2026 13w ago | Press Release | $87.15 $89.88 | ▲ +3.14% | ▲ +2.21% | $92.88 (+6.58%) |
US Market Status
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