Zoom Communications

ZM · Nasdaq · Information Technology · Financials, fiscal 2018 to 2026

ZM · Last close · October 26, 2026

$98.04

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%.

Zoom Communications, Inc. Latest fiscal year ended January 31, 2026 10-K filed February 27, 2026 · 0001585521-26-000030 Updated October 11, 2026

Revenue

$4.9B

4.4%

Operating margin

23.1%

5.6 pts

Net income

$1.9B

88.1%

Free cash flow

$1.9B

6.4%

Return on capital

56.2%

0.5 pts

Market cap

$29.4B

Oct 26 close

P/E

9.1x

On $10.79 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

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.

Its biggest risks, as it describes them

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.
Using generative AI in its products, which may bring operational, legal and reputation problems.

From Zoom Communications's annual report on Form 10-K, filed February 27, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2020 to 2026, earnings per share grew 102.4% a year and net income 105.4% a year, as new shares raised the share count by 21% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Zoom Communications yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

What Zoom Communications says to expect

Third quarter fiscal 2027: total revenueTotal revenue is expected to be between $1.275 billion and $1.280 billion and revenue in constant currency is expected to be between $1.275 billion and $1.280 billion.
Full year fiscal 2027: total revenueTotal revenue is expected to be between $5.085 billion and $5.095 billion and revenue in constant currency is expected to be between $5.071 billion and $5.081 billion.

The company's own words, from its earnings release (Form 8-K, Exhibit 99), filed August 25, 2026. They are its expectations, not ours, and not a forecast or price target from The Filing Desk. Replaced when the next release is out.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Zoom Communications' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Zoom Communications' fiscal 2026 free cash flow of $1.9B, net cash of $7.8B at January 31, 2026 and 307 million diluted shares, from its filings. The scenarios are fitted to Zoom Communications: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 3.5% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Application Software); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2026.

Net cash, US$ millions Cash and short-term investments minus debt and finance leases at January 31, 2026. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2026.

Your assumptions

Start from

Fitted to Zoom Communications's own revenue growth, as above. Cautious: growth of 1.5% then 2% a year, 2% after year 10, a 10% discount rate. Base: growth of 3.5% then 3% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 5.5% then 4% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $98.04
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Careful. Zoom Communications' P/E today, 9.1×, is less than half the example multiple. A gap that wide usually means one of two things: its latest earnings include large one-off items, such as a tax benefit or a gain on a sale, or investors expect its earnings to fall. Either way the examples can mislead, so they aren't set against the share price. Check the earnings in its latest filings before using them.

Value per share on three example scenarios, from Zoom Communications' earnings per share of $10.79 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 34×, the middle of Zoom Communications' own P/E today, its peers' median and its sector's median (the Information Technology median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to July 31, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: OpenText, Palantir, Cadence Design Systems.

Earnings growth in the years ahead (% a year) Starts at Zoom Communications' revenue growth over the last 3 years, 3.5% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $98.04
Value at this multiple, against the last close: —
Zoom Communications' P/E at the last close: 9.1×

Company	Last close	Earnings per share	P/E today
PalantirPLTR	$198.84	$1.16	171.4×
Cadence Design SystemsCDNS	$322.17	$4.29	75.1×
OpenTextOTEX	$27.63	$2.58	10.7×
Zoom CommunicationsZM	$98.04	$10.79	9.1×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	5,419	5,413	6,962	7,792	7,817
Debt incl. finance leases	0	0	0	0	0
Net debt (negative means net cash)	−5,419	−5,413	−6,962	−7,792	−7,817
Net debt to EBITDA	−4.9x	−16.5x	−11.1x	−8.3x	−6.2x
Debt to equity	0.0x	0.0x	0.0x	0.0x	0.0x
Interest coverage	—	—	—	—	—
Current ratio	3.9x	3.7x	4.5x	4.6x	4.3x
Quick ratio	3.9x	3.7x	4.5x	4.6x	4.3x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Zoom Communications shares on the open market, and 6 insiders sold $81.5 million, all of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 22, 2026	Santiago SubotovskyDirector	Sold plan	20	$100.43	$2,009	Form 4
Oct 21, 2026	Michelle ChangChief Financial Officer	Sold plan	10,156	$101.93	$1.0 million	Form 4
Oct 21, 2026	Santiago SubotovskyDirector	Sold plan	3,812	$100.56	$383,336	Form 4
Oct 21, 2026	Herbert Raymond McMasterDirector	Sold plan	1,500	$101.25	$151,875	Form 4
Oct 15, 2026	Santiago SubotovskyDirector	Sold plan	717	$96.63	$69,282	Form 4
Oct 12, 2026	Michelle ChangChief Financial Officer	Sold plan	8,489	$99.46	$844,341	Form 4
Oct 12, 2026	Velchamy SankarlingamPres. of Engineering & Product	Sold plan	7,645	$99.26	$758,875	Form 4
Oct 8, 2026	Herbert Raymond McMasterDirector	Sold plan	3,000	$94.71	$284,120	Form 4
Sep 10, 2026	Velchamy SankarlingamPres. of Engineering & Product	Sold plan	2,590	$95.81	$248,144	Form 4
Sep 8, 2026	Santiago SubotovskyDirector	Sold plan	2,637	$96.63	$254,815	Form 4
Sep 2, 2026	Eric S. YuanChief Executive Officer, Director	Sold plan	12,100	$95.82	$1.2 million	Form 4
Sep 1, 2026	Eric S. YuanChief Executive Officer, Director	Sold plan	12,100	$95.34	$1.2 million	Form 4

The latest 12 of 55 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY24	FY25	FY26
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Fail	Fail
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Fail	Fail	Pass
Gross margin rose	Pass	Fail	Pass
Revenue rose relative to assets	Fail	Fail	Fail
F-score	6 of 9	5 of 9	6 of 9
Accruals ratio	−10.7%	−8.9%	−0.8%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Zoom Communications side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Zoom Communications	FY26	4.4%	23.1%	39.5%	56.2%	−6.2x	6
Snowflake	FY26	29.2%	−30.6%	23.9%	—	—	6	Compare
OpenText	FY26	1.5%	20.6%	15.4%	9.0%	3.2x	9	Compare
Palantir	FY25	56.2%	31.6%	46.9%	—	−5.0x	7	Compare
Cadence Design Systems	FY25	14.1%	28.2%	30.0%	23.7%	−0.4x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

9 years of figures

Fiscal year	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	152	330	623	2,651	4,100	4,393	4,527	4,665	4,869
Revenue growth	—	118.2%	88.4%	325.8%	54.6%	7.2%	3.1%	3.0%	4.4%
Gross profit	121	270	507	1,829	3,045	3,292	3,449	3,536	3,750
Research and development	16	33	67	164	363	774	803	852	845
Operating income	−5	6	13	660	1,064	245	525	813	1,124
Net income	−4	8	25	672	1,376	104	638	1,010	1,900
Diluted EPS (US$)	−0.11	0.00	0.09	2.25	4.50	0.34	2.07	3.21	6.18
Diluted shares (millions)	78	116	254	298	306	304	308	315	307
Cash flow
Cash from operations	19	51	152	1,471	1,605	1,290	1,599	1,945	1,989
Capital expenditure	10	28	38	80	133	104	127	137	65
Free cash flow	10	23	114	1,391	1,473	1,186	1,472	1,809	1,924
Dividends paid	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	1,000	0	1,094	1,621
Acquisitions	0	0	0	26	4	121	205	0	120
Stock-based compensation	10	9	73	276	477	1,286	1,057	931	761
Balance sheet at fiscal year end
Cash and short-term investments	36	176	855	4,245	5,419	5,413	6,962	7,792	7,817
Debt incl. finance leases	—	15	0	0	0	0	0	0	0
Total assets	—	355	1,290	5,298	7,551	8,128	9,930	10,988	11,960
Total liabilities	—	202	456	1,437	1,771	1,922	1,910	2,053	2,152
Shareholders' equity	−27	−7	834	3,861	5,780	6,207	8,019	8,935	9,808
Margins and ratios
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%
Net margin	−2.5%	2.3%	4.1%	25.4%	33.5%	2.4%	14.1%	21.6%	39.0%
Free cash flow margin	6.4%	6.9%	18.3%	52.5%	35.9%	27.0%	32.5%	38.8%	39.5%
Return on capital	—	—	—	—	—	—	43.5%	56.8%	56.2%
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%
Net debt to EBITDA	—	−12.3x	−29.3x	−6.2x	−4.9x	−16.5x	−11.1x	−8.3x	−6.2x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Zoom Communications' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Zoom Communications.