Zoom Communications
ZM Nasdaq· Application Software
Last close · Oct 26, 2026
$98.04
KIRA · Stoqly’s AI analyst, in plain words
- Zoom Communications had $4.9B of revenue in fiscal 2026, up 4.4% on the year before. Over five years, revenue changed +12.9% a year on average.
- Its operating margin was 23.1%, up 5.6 pts: of every 100 in sales, about 23 is left after running the business.
- Zoom Communications made $1.9B of net profit in fiscal 2026.
- Free cash flow was $1.9B in fiscal 2026, 39.5% of revenue.
- Zoom Communications returned $1.6B to shareholders in fiscal 2026, 84% of free cash flow. The diluted share count fell 2.5%.
- Zoom Communications has $7.8B more cash than debt.
Market cap
$29.4B
P/E
9.1x
Revenue
$4.9B
Net income
$1.9B
Free cash flow
$1.9B
Operating margin
23.1%
Zoom Communications in 30 seconds · fiscal 2026
Are sales growing?
+4.4%
Only a little. Sales grew 4.4% last year.
Does it make a profit?
39.0%
Yes. It keeps 39.0% of every sale as profit.
Does profit turn into cash?
39.5%
Yes. 39.5% of sales ends up as free cash.
Is debt under control?
Net cash
Yes. It has more cash than debt.
How healthy are the accounts?
6 / 9
Mixed. It passes 6 of 9 health tests.
How is the share priced?
9.1x
One share costs 9.1 times its yearly profit per share. Typical for its sector: 33.5x.
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.
Biggest risks, in its own words
- Failing to attract new customers and to keep and grow business with existing ones.
- Outages or delays in the data centers and cloud hosting services it uses to run its platform.
- Strong competition, including from large companies that invest in video tools.
- Slowing revenue growth, and results that can swing a lot from period to period.
- Fiscal year ends
- January 31, 2026
- Latest annual report
- 10-K · Feb 27, 2026
- Legal name
- Zoom Communications, Inc.
- CIK
- 0001585521
Zoom Communications · ZM
Results and finances
The last 5 fiscal years. Amounts in USD.
| Fiscal year | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Sales and profit | |||||
| Revenue | $4.1B | $4.4B | $4.5B | $4.7B | $4.9B |
| Revenue growth | 54.6% | 7.2% | 3.1% | 3.1% | 4.4% |
| Gross margin | 74.3% | 75.0% | 76.2% | 75.8% | 77.0% |
| Operating margin | 25.9% | 5.6% | 11.6% | 17.4% | 23.1% |
| Net income | $1.4B | $104M | $638M | $1.0B | $1.9B |
| Net margin | 33.6% | 2.4% | 14.1% | 21.7% | 39.0% |
| Diluted EPS | $4.50 | $0.34 | $2.07 | $3.21 | $6.18 |
| Cash | |||||
| Cash from operations | $1.6B | $1.3B | $1.6B | $1.9B | $2.0B |
| Capital expenditure | $133M | $104M | $127M | $137M | $65.0M |
| Free cash flow | $1.5B | $1.2B | $1.5B | $1.8B | $1.9B |
| FCF margin | 35.9% | 27.0% | 32.5% | 38.8% | 39.5% |
| Dividends paid | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Share buybacks | $0.0M | $1.0B | $0.0M | $1.1B | $1.6B |
| Share count change | 2.6% | −0.5% | 1.4% | 2.1% | −2.5% |
| Debt and strength | |||||
| 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 |
| Shareholders' equity | $5.8B | $6.2B | $8.0B | $8.9B | $9.8B |
| Net debt / EBITDA | −4.9x | −16.5x | −11.1x | −8.3x | −6.2x |
| Current ratio | 3.9x | 3.7x | 4.5x | 4.6x | 4.3x |
| Returns and quality | |||||
| Return on capital | — | — | 43.5% | 56.8% | 56.2% |
| Return on equity | 28.5% | 1.7% | 9.0% | 11.9% | 20.3% |
| Piotroski F-score | 5 | 5 | 6 | 5 | 6 |
| Altman Z'' | 9.3 | 8.2 | 9.8 | 10.2 | 10.6 |
Insiders bought, 12 months
$0.0M
0 insiders
Insiders sold, 12 months
$84.0M
6 insiders
Of sales under plans
100%
$84.0M
How to read these numbers
- Revenue:
- Total sales reported in the income statement.
- Operating margin:
- Operating income as a share of revenue.
- Net income:
- Profit after all expenses, interest and tax.
- Free cash flow:
- Cash from operations minus capital spending.
- Net debt / EBITDA:
- Years of EBITDA needed to pay off net debt. Below zero means more cash than debt.
- Return on capital:
- After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Zoom Communications · ZM
Charts and comparison
Ten years at a glance, and how it stacks up against similar companies.
Revenue
Net income
Margins, % of revenue
Cash vs debt (incl. leases)
Free cash flow
Dividends and buybacks
Similar companies
Each company’s latest fiscal year. Fiscal years end in different months, so periods don’t line up exactly.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score |
|---|---|---|---|---|---|---|---|
| Zoom Communications ZM | $29.4B | 4.4% | 23.1% | 39.5% | 56.2% | 9.1x | 6 |
| Snowflake SNOW | $117.0B | 29.2% | −30.6% | 23.9% | — | — | 6 |
| OpenText OTEX | $6.9B | 1.5% | 20.6% | 15.4% | 9.0% | — | 9 |
| Palantir PLTR | $510.8B | 56.2% | 31.6% | 46.9% | — | 171.4x | 7 |
| Cadence Design Systems CDNS | $88.2B | 14.1% | 28.2% | 30.0% | 23.7% | 75.1x | 5 |
Price compared with profit (P/E)
How many times its yearly profit per share one share costs. Higher means investors pay more for each unit of profit.
KIRA
At $98.04 a share, the company is worth $29.4B: 9.1 times its earnings of the last four quarters.
Zoom Communications grew sales faster than 1 of its 4 similar companies. Its P/E is higher than 0 of 2.
Source: SEC EDGAR XBRL filings (CIK 0001585521). Data updated October 11, 2026. For information only — not investment advice. Check the original filings before relying on any figure.