Zoom Communications Inc. Reports Fourth‑Quarter and FY 2026 Results
Zoom Communications Inc. (NASDAQ: ZM) released its fourth‑quarter and full‑year 2026 financial results on February 25, 2026. The company reported a total revenue of $1,247.0 million for the quarter, reflecting a 5.3 % year‑over‑year increase and a 4.8 % rise when adjusted for constant currency. Full‑year revenue for 2026 was $4,944.0 million, up 6.3 % year‑over‑year and 5.9 % in constant currency.
Earnings and Guidance
Zoom’s earnings per share for the quarter exceeded market expectations, but the company announced a moderate downward revision of its fiscal‑year earnings guidance. The revised outlook placed the 2026 earnings‑per‑share target at $5.25 versus the previously projected $5.40. Analysts noted that the adjustment was largely attributable to a slight miss in net income relative to consensus estimates.
Operating Highlights
- Revenue Growth: The company’s revenue growth was driven by increased usage of its video‑meeting platform, particularly among enterprise customers.
- Gross Margin: Gross margin for the quarter was 73.5 %, slightly higher than the 72.8 % reported in the previous year.
- Operating Expenses: Research and development spending rose to $134.2 million (4.2 % increase YoY), while sales, general and administrative expenses increased to $198.7 million (3.9 % increase YoY).
- Net Income: Net income for the quarter was $114.6 million, up 12.1 % year‑over‑year.
Market Reaction
Following the earnings announcement, Zoom’s shares fell 2.8 % on the Nasdaq exchange, reflecting investor concern over the revised earnings guidance. The broader technology index, the Nasdaq 100, was down 1.6 % at the close of trading on February 26, 2026, amid a broader sell‑off in software equities after Nvidia’s “phenomenal” results shifted capital flows toward the software sector.
Company Profile
| Item | Value |
|---|---|
| Sector | Information Technology |
| Industry | Software |
| Primary Exchange | Nasdaq |
| Currency | USD |
| Market Cap | $25.48 billion |
| Price (Feb 23) | $87.51 |
| 52‑Week High | $97.58 |
| 52‑Week Low | $64.41 |
| P/E Ratio | 16.72 |
| Business Focus | Video‑meeting, phone‑call, whiteboard, and annotation solutions for global customers |
Zoom’s platform enables users to connect for video meetings, phone calls, whiteboarding, and annotation from anywhere. The company continues to expand its product offering and market reach, particularly in the enterprise and education segments.
Outlook
Zoom maintains its guidance for 2026 revenue growth of 6.0 % and a gross margin expansion to 75 %. The company emphasizes continued investment in product innovation, international expansion, and strategic acquisitions to sustain growth momentum.
The information presented above is based on the company’s latest financial release and accompanying market reports as of February 27, 2026.
