ZM Earnings Prediction
The chart below shows how ZM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZM sees a -1.86% change in stock price 10 days leading up to the earnings, and a -0.46% change 10 days following the report. On the earnings day itself, the stock moves by +0.87%. This data can give you a slight idea of what to expect for the next quarter's release.
ZM Key Earning Data
ZM Earnings Analysis
Positive
Earnings Beat Expectations: Zoom Video Communications, Inc. beats earnings expectations with reported EPS of $1.41, exceeding expectations of $1.31.
AI-Driven User Growth: FY25 was marked by major advancements in AI, transforming Zoom into an AI-first work platform, with a 68% quarter-over-quarter growth in monthly active users of Zoom AI Companion.
Custom AI Companion Launch: The introduction of Custom AI Companion add-on in April aims to automate workplace tasks, enhancing personalization and integration with existing data and third-party tools.
Zoom Phone Expansion Success: Zoom Workplace had a significant win with Amazon in Q4, showcasing strong traction in Zoom Phone with new customers and expansions.
Record ARR Deal Achievement: The Contact Center achieved its largest ARR deal in history with a Fortune 100 US tech company, demonstrating the ability to win demanding enterprise customers.
Customer Growth Surge: Workvivo experienced a record quarter with an 89% year-over-year growth in customers, driven by strategic partnerships and strong demand.
Revenue Growth Exceeds Guidance: Total revenue grew approximately 3% year-over-year to $1.184 billion, exceeding guidance by $4 million, with Enterprise revenue growing 6% year-over-year.
Churn Rate Improvement: Average Monthly Churn improved to 2.8%, marking the lowest churn rate in a fourth quarter.
Improved Operating Margin: Non-GAAP operating margin improved to 39.5%, reflecting continued investment in AI and emerging growth businesses while maintaining profitability.
Cash Flow Growth: Operating cash flow increased 21% year-over-year to $425 million, with free cash flow growing 25% to $416 million, indicating strong cash generation capabilities.
Negative
Revenue Growth Slowdown: Total revenue growth was only 3% year-over-year, indicating a slowdown in growth compared to previous periods.
Earnings Performance Analysis: Despite beating earnings expectations, the non-GAAP diluted net income per share was $1.41, which is $0.01 lower than Q4 of last year, primarily due to higher income tax and unrealized foreign exchange losses.
Enterprise Customer Spending Stagnation: The trailing 12 months net dollar expansion rate for Enterprise customers remained flat at 98%, suggesting a lack of growth in existing customer spending.
Customer Retention Challenges: Average Monthly Churn was 2.8%, which, while an improvement, still indicates that customer retention is a concern.
Gross Margin Analysis: The non-GAAP gross margin in Q4 was 78.8%, slightly lower than the previous year, primarily due to strategic investments in AI, which may impact profitability in the short term.
Q1 FY26 Revenue Guidance: The guidance for Q1 FY26 indicates only 2% year-over-year revenue growth at the midpoint, reflecting ongoing challenges in the market.
Disappointing Revenue Growth Outlook: For FY26, the expected revenue growth is only 2.7% year-over-year at the midpoint, which may not meet investor expectations for a high-growth tech company.
ZM FAQs
How does ZM typically perform around its earnings report dates?
ZM's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.86% change leading up to the report and a -0.46% change in the 10 days following the release.
Is Zoom Video Communications Inc (ZM) Q4 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ZM Earning Call Sentiment
Zoom Video Communications, Inc. (NASDAQ:ZM) Q4 2025 Earnings Call Transcript
ZM.O
-1.98%
