Snowflake vs Zoom Communications
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KIRAβs take AI analyst
I put Snowflake and Zoom Communications side by side, using each oneβs latest annual report. Here is what stands out:
- Zoom Communications is the larger business, with $4.9B of revenue in fiscal 2026 against $4.7B for Snowflake.
- Snowflake grew revenue faster (29.2%, against 4.4%).
- Zoom Communications kept more of each dollar of sales as operating profit (23.1% operating margin, against β30.6%).
- Zoom Communications turned more of its sales into free cash flow (39.5% FCF margin, against 23.9%).
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Snowflake
SNOW
2/9
Revenue growth5-year growth
Zoom Communications
ZM
6/9
Gross marginOperating marginNet marginFCF marginReturn on equityShare count change
Side by side
Best in the row
| Latest fiscal year | SNOW FY26 | ZM FY26 |
|---|---|---|
| Size | ||
| Market cap | $117.0B | $29.4B |
| Revenue | $4.7B | $4.9B |
| Free cash flow | $1.1B | $1.9B |
| Net income | β$1.3B | $1.9B |
| Growth | ||
| Revenue growth | 29.2% | 4.4% |
| 5-year growth | 51.2% | 12.9% |
| Share count change | 1.4% | β2.5% |
| Profitability | ||
| Gross margin | 67.2% | 77.0% |
| Operating margin | β30.6% | 23.1% |
| Net margin | β28.4% | 39.0% |
| FCF margin | 23.9% | 39.5% |
| Return on capital | β | 56.2% |
| Return on equity | β54.1% | 20.3% |
| Balance sheet | ||
| Net debt | β$1.7B | β$7.8B |
| Net debt / EBITDA | β | β6.2x |
| Dividends and buybacks | $874M | $1.6B |
| Valuation & quality | ||
| P/E | β | 9.1x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.