The 5.5% revenue growth and 1.7% EPS beat are in-line with expectations, and the raised guidance (+$30M at midpoint) is modest. The $1.0B buyback authorization provides a floor but does not signal accelerating growth. Watch for Q2 guidance ($1.265-$1.270B) vs consensus $1.27B — the midpoint is slightly below. The AI monetization narrative (184% AI Companion growth) is positive but not yet material to total revenue. Monitor next quarter for enterprise net dollar expansion rate crossing 100% as a catalyst.
Price Chart
Executive Summary
Zoom reported Q1 FY2027 revenue of $1.239B (+5.5% YoY) and GAAP EPS of $1.42, a 1.7% beat vs $1.42 consensus. Enterprise revenue grew 7.2% YoY to $755.7M, and the company raised its full-year revenue guidance to $5.080-$5.090B while increasing its share repurchase authorization by $1.0B. Despite the beat, the modest growth rate and elevated online churn (3.0% vs 2.8% YoY) limit the bullish case.
Key Financial Metrics
Key Facts
- Q1 FY2027 revenue $1.239B, up 5.5% YoY, above guidance high end
- GAAP EPS $1.42 vs consensus $1.42 (1.7% beat)
- Enterprise revenue $755.7M, up 7.2% YoY
- GAAP operating margin 25.1%, up 450 bps YoY; non-GAAP operating margin 41.1%, up 130 bps
- Trailing 12-month net dollar expansion rate for Enterprise customers improved to 99% from 98%
- Online average monthly churn increased to 3.0% from 2.8% YoY
- Full-year FY2027 revenue guidance raised to $5.080-$5.090B (vs prior $5.050-$5.080B implied)
- Board authorized additional $1.0B share repurchase, incremental to $625M remaining
- Free cash flow $500.5M, up 8.0% YoY; operating cash flow $521.6M
- AI Companion paid users grew 184% YoY; My Notes reached 1.5M licensed users in 4 months
Financial Impact
Revenue beat by ~$19M vs consensus; EPS beat by $0.02; guidance raised modestly; $1.0B buyback authorization added
Risk Factors
- Online churn increased to 3.0% from 2.8% YoY, indicating competitive pressure in SMB segment
- Enterprise net dollar expansion rate at 99% still below 100%, meaning existing customers are contracting on net
- Revenue growth of 5.5% remains low single-digit, limiting upside multiple expansion
- Full-year guidance implies ~4.5% growth at midpoint, decelerating from Q1's 5.5%
- Stock-based compensation remains elevated at $189M (15.3% of revenue)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3299724 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 21d ago | Insider Cluster | $95.57 $88.77 | ▼ −7.12% | ▼ −6.89% | $92.88 (−2.81%) |
Sep 10, 2026 21d 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 6w 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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