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Zoom Communications

ZM Nasdaq Application Software Financials FY2018–FY2026

Zoom Communications' revenue rose 4.4% to $4.9 billion in fiscal 2026. Its operating margin was 23.1%, up from 17.4% a year earlier. Free cash flow was $1.9 billion, up 6.4%. It paid out $1.6 billion in dividends and buybacks, 84% of free cash flow. The diluted share count fell 2.5%.

Last close · Oct 23, 2026

$95.77

0.4%
Value it Compare
Revenue Total sales reported in the income statement.
$4.9B
4.4% vs prior year
Operating margin Operating income as a share of revenue.
23.1%
5.6 pts
Net income Profit after all expenses, interest and tax.
$1.9B
88.1%
Free cash flow Cash from operations minus capital spending.
$1.9B
6.4%
Return on capital After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
56.2%
0.5 pts
Market cap Last close times the latest diluted share count, so it is approximate.
$28.7B
Oct 23 close
P/E Last close divided by diluted earnings per share over the last four quarters.
8.9x
On $10.79 EPS (TTM)

What Zoom Communications does

Zoom sells communication and collaboration software. Its main package, Zoom Workplace, brings together Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom Docs and Zoom Whiteboard, with an AI assistant called AI Companion. A second group, Zoom Business Services, is aimed at sales, marketing and customer service teams and includes Zoom Contact Center, Zoom Revenue Accelerator and Zoom Events. Its customers range from entrepreneurs to global companies.

Zoom makes its money from subscriptions to its platform. It also sells Workvivo, an employee communication tool, as a monthly subscription with optional add-ons for an extra fee. Outside developers can build apps and integrations that use Zoom through its Developer Platform and App Marketplace.

Zoom says it spent fiscal 2026, which ended January 31, 2026, building more AI into its products, and it is adding AI agents to AI Companion. It says it competes in markets that are competitive, and that other large established companies may also invest in video communications tools.

Legal name
Zoom Communications, Inc.
Fiscal year ends
January 31, 2026
Latest annual report
10-K · Feb 27, 2026
Accession · CIK
0001585521-26-000030
0001585521

Revenue and margins

Zoom Communications had $4.9B of revenue in fiscal 2026, up 4.4% on the year before.

Revenue
Revenue
Margins, % of revenue
Gross Operating Net FCF
Margins, % of revenue
Gross Operating Net FCF

Net income and earnings per share

Loss periods are shown in red.

Net income
Net income
Diluted EPS
Diluted EPS

Returns on capital

After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.

Return on capital, equity and assets (annual)
Return on capital Return on equity Return on assets

Cash flow

Free cash flow was $1.9B in fiscal 2026, 39.5% of revenue. Cash from operations minus capital spending.

Free cash flow
Free cash flow
Cash from operations vs capital spending
Cash from operations Capital spending
Cash from operations vs capital spending
Cash from operations Capital spending

Dividends, buybacks and share count

Zoom Communications returned $1.6B to shareholders in fiscal 2026, 84% of free cash flow. The diluted share count fell 2.5%.

Dividends and buybacks
Dividends Buybacks
Dividends and buybacks
Dividends Buybacks
Diluted shares outstanding (annual)

Value Zoom Communications yourself

Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.

Discounted cash flow

Value per share

—

Adds net cash of $7.8B and divides by 307.3M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.

Earnings multiple

Value per share

—

Reference multiples: today 8.9x · peers 73.8x · sector 33.5x.

Balance sheet

Cash, debt and the ratios that show how comfortably Zoom Communications can carry it.

Cash vs debt (incl. leases)
Cash Debt
Fiscal year endFY22FY23FY24FY25FY26
Cash and short-term investments $5.4B$5.4B$7.0B$7.8B$7.8B
Debt incl. finance leases $0.0M$0.0M$0.0M$0.0M$0.0M
Net debt / EBITDA −4.9x−16.5x−11.1x−8.3x−6.2x
Debt / equity 0.0x0.0x0.0x0.0x0.0x
Current ratio 3.9x3.7x4.5x4.6x4.3x
Quick ratio 3.9x3.7x4.5x4.6x4.3x
Total assets $7.6B$8.1B$9.9B$11.0B$12.0B
Total liabilities $1.8B$1.9B$1.9B$2.1B$2.2B
Shareholders' equity $5.8B$6.2B$8.0B$8.9B$9.8B
Net debt (− = net cash) −$5.4B−$5.4B−$7.0B−$7.8B−$7.8B

Insider trades

Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.

Bought, 12 months

$0.0M

0 insiders

Sold, 12 months

$9.7M

5 insiders

Of sales under plans

100%

$9.7M

DateInsiderTradeSharesPriceValueFiling
Oct 12, 2026 Michelle ChangChief Financial Officer Sold plan 8,489 $99.46 $0.8M Form 4
Oct 12, 2026 Velchamy SankarlingamPres. of Engineering & Product Sold plan 7,645 $99.26 $0.8M Form 4
Oct 8, 2026 Herbert Raymond McMasterDirector Sold plan 3,000 $94.71 $0.3M Form 4
Sep 10, 2026 Velchamy SankarlingamPres. of Engineering & Product Sold plan 2,590 $95.81 $0.2M Form 4
Sep 8, 2026 Santiago SubotovskyDirector Sold plan 2,637 $96.63 $0.3M Form 4
Sep 2, 2026 Eric S. YuanChief Executive Officer, Director Sold plan 12,100 $95.82 $1.2M Form 4
Sep 1, 2026 Eric S. YuanChief Executive Officer, Director Sold plan 12,100 $95.34 $1.2M Form 4
Aug 6, 2026 Eric S. YuanChief Executive Officer, Director Sold plan 12,100 $100.20 $1.2M Form 4
Aug 5, 2026 Eric S. YuanChief Executive Officer, Director Sold plan 12,100 $100.17 $1.2M Form 4
Aug 4, 2026 Santiago SubotovskyDirector Sold plan 7,911 $101.33 $0.8M Form 4
Jul 15, 2026 Velchamy SankarlingamPres. of Engineering & Product Sold plan 7,644 $91.98 $0.7M Form 4
Jul 14, 2026 Eric S. YuanChief Executive Officer, Director Sold plan 12,100 $90.66 $1.1M Form 4

Piotroski F-score

Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.

TestFY24FY25FY26
Net income is positive ✓ ✓ ✓
Cash from operations is positive ✓ ✓ ✓
Return on assets rose ✓ ✓ ✓
Cash from operations exceeds net income ✓ ✓ ✓
Debt fell relative to assets ✕ ✕ ✕
Current ratio rose ✓ ✓ ✕
Share count didn't rise ✕ ✕ ✓
Gross margin rose ✓ ✕ ✓
Revenue rose relative to assets ✕ ✕ ✕
F-score 6 / 95 / 96 / 9
Accruals ratio −10.7%−8.9%−0.8%
Altman Z'' 9.7510.2410.62

Similar companies

Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.

CompanyMarket capGrowthOp. marginFCF marginROICP/EF-score
Zoom Communications ZM $28.7B 4.4% 23.1% 39.5% 56.2% 8.9x 6
Snowflake SNOW $113.7B 29.2% −30.6% 23.9% — — 6 Compare →
OpenText OTEX $7.0B 1.5% 20.6% 15.4% 9.0% 10.8x 9 Compare →
Palantir PLTR $505.4B 56.2% 31.6% 46.9% — 169.6x 7 Compare →
Cadence Design Systems CDNS $86.6B 14.1% 28.2% 30.0% 23.7% 73.8x 5 Compare →

9 years of figures

US$ millions unless stated. Hover a ratio's name for its definition.

Download CSV
Fiscal yearFY18FY19FY20FY21FY22FY23FY24FY25FY26
Income statement
Revenue $152M $331M $623M $2.7B $4.1B $4.4B $4.5B $4.7B $4.9B
Gross profit $121M $270M $507M $1.8B $3.0B $3.3B $3.4B $3.5B $3.7B
Research and development $15.7M $33.0M $67.1M $164M $363M $774M $803M $852M $845M
Operating income −$4.8M $6.2M $12.7M $660M $1.1B $245M $525M $813M $1.1B
Pretax income −$3.5M $8.3M $26.4M $678M $1.1B $249M $832M $1.3B $2.4B
Income tax $0.3M $0.8M $1.1M $5.7M −$274M $146M $195M $305M $522M
Net income −$3.8M $7.6M $25.3M $672M $1.4B $104M $638M $1.0B $1.9B
Diluted EPS −$0.11 $0.00 $0.09 $2.25 $4.50 $0.34 $2.07 $3.21 $6.18
Diluted shares 0.08B 0.12B 0.25B 0.30B 0.31B 0.30B 0.31B 0.32B 0.31B
Cash flow
Cash from operations $19.4M $51.3M $152M $1.5B $1.6B $1.3B $1.6B $1.9B $2.0B
Capital expenditure $9.7M $28.4M $38.1M $80.0M $133M $104M $127M $137M $65.0M
Free cash flow $9.7M $22.9M $114M $1.4B $1.5B $1.2B $1.5B $1.8B $1.9B
Depreciation and amortization $2.8M $7.0M $16.4M $28.9M $48.2M $82.3M $105M $123M $133M
Stock-based compensation $10.3M $8.9M $73.1M $276M $477M $1.3B $1.1B $931M $761M
Acquisitions $0.0M $0.0M $0.0M $26.5M $3.5M $121M $205M $0.0M $120M
Share buybacks $0.0M $0.0M $0.0M $0.0M $0.0M $1.0B $0.0M $1.1B $1.6B
Dividends paid $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Dividends and buybacks $0.0M $0.0M $0.0M $0.0M $0.0M $1.0B $0.0M $1.1B $1.6B
Balance sheet
Cash and short-term investments $36.1M $176M $855M $4.2B $5.4B $5.4B $7.0B $7.8B $7.8B
Total debt — $14.9M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Finance lease liabilities $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Current assets — $277M $1.1B $4.8B $6.2B $6.4B $7.9B $8.7B $8.7B
Current liabilities — $152M $334M $1.3B $1.6B $1.7B $1.8B $1.9B $2.0B
Inventory $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Property and equipment, net — $37.3M $57.1M $150M $222M $253M $294M $331M $265M
Total assets — $355M $1.3B $5.3B $7.6B $8.1B $9.9B $11.0B $12.0B
Total liabilities — $203M $456M $1.4B $1.8B $1.9B $1.9B $2.1B $2.2B
Shareholders' equity −$26.7M −$7.4M $834M $3.9B $5.8B $6.2B $8.0B $8.9B $9.8B
Margins
Gross margin 79.7% 81.5% 81.5% 69.0% 74.3% 75.0% 76.2% 75.8% 77.0%
Operating margin −3.2% 1.9% 2.0% 24.9% 25.9% 5.6% 11.6% 17.4% 23.1%
EBITDA margin −1.4% 4.0% 4.7% 26.0% 27.1% 7.5% 13.9% 20.1% 25.8%
Net margin −2.5% 2.3% 4.1% 25.4% 33.6% 2.4% 14.1% 21.7% 39.0%
FCF margin 6.4% 6.9% 18.3% 52.5% 35.9% 27.0% 32.5% 38.8% 39.5%
Returns
Return on capital — — — — — — 43.5% 56.8% 56.2%
Return on capital employed — — 2.2% 26.4% 21.3% 4.0% 7.2% 9.4% 11.8%
Return on equity — — 6.1% 28.6% 28.5% 1.7% 9.0% 11.9% 20.3%
Return on assets — — 3.1% 20.4% 21.4% 1.3% 7.1% 9.7% 16.6%
Growth
Revenue growth — 118.2% 88.4% 325.8% 54.6% 7.2% 3.1% 3.1% 4.4%
Net income growth — — 233.7% 2,556.9% 104.6% −92.5% 514.7% 58.5% 88.1%
EPS growth — — — 2,400.0% 100.0% −92.4% 508.8% 55.1% 92.5%
FCF growth — 136.4% 397.0% 1,122.4% 5.9% −19.4% 24.1% 22.9% 6.4%
Share count change — 48.5% 119.2% 17.2% 2.6% −0.5% 1.4% 2.1% −2.5%
Financial health
Net debt / EBITDA — −12.3x −29.3x −6.2x −4.9x −16.5x −11.1x −8.3x −6.2x
Debt / equity — — 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x
Current ratio — 1.8x 3.3x 3.8x 3.9x 3.7x 4.5x 4.6x 4.3x
Quick ratio — 1.8x 3.3x 3.8x 3.9x 3.7x 4.5x 4.6x 4.3x
Capital allocation
Capex / revenue 6.4% 8.6% 6.1% 3.0% 3.2% 2.4% 2.8% 2.9% 1.3%
Stock comp / revenue 6.8% 2.7% 11.7% 10.4% 11.6% 29.3% 23.4% 20.0% 15.6%
Payouts / FCF 0.0% 0.0% 0.0% 0.0% 0.0% 84.3% 0.0% 60.5% 84.2%
Quality scores
Piotroski F-score — — — 6.0 5.0 5.0 6.0 5.0 6.0
Altman Z'' — 2.2 5.9 8.5 9.3 8.2 9.8 10.2 10.6
Accruals ratio — — −15.4% −24.3% −3.6% −15.1% −10.7% −8.9% −0.8%

Source: SEC EDGAR XBRL filings (CIK 0001585521). Data updated October 11, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.

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