Zoom Q1 revenue rises, beats analyst expectations

Zoom Communications

21/05/2026 21:14

Overview

Video communications platform's fiscal Q1 revenue grew 5.5% yr/yr, beating analyst expectations

Adjusted operating margin for fiscal Q1 rose to 41.1%

Company increased share repurchase authorization by $1 bln

Outlook

Zoom sees Q2 revenue between $1.265 bln and $1.270 bln

Company expects Q2 non-GAAP diluted EPS of $1.45-$1.47

Zoom forecasts FY27 revenue of $5.080 bln-$5.090 bln

Result Drivers

AI PRODUCT ADOPTION - Co said growth was driven by increased adoption of AI Companion and My Notes features, with AI Companion paid users up 184% yr/yr

ENTERPRISE CUSTOMER GROWTH - Enterprise revenue rose 7.2% yr/yr, supported by an 8.2% increase in customers contributing over $100,000 in trailing 12 months revenue

AI MONETIZATION STREAMS - Co reported strong progress in new AI monetization streams and customer experience offerings

Company press release: ID:nGNX6B6sFl

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.24 bln
$1.22 bln (25 Analysts)
Q1 Adjusted operating Margin
41.10%
Q1 Operating Margin
25.10%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Zoom Communications Inc is $100.00, about 0.6% above its May 20 closing price of $99.42

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)