Filing Flows › Zoom Communications (ZM) › Q1 FY26
Zoom Communications (ZM) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed May 23, 2025
Zoom Communications (ZM) reported revenue of $1.2B for the first quarter fiscal 2026 (Q1 FY26), +3% from a year earlier and -0.8% from the quarter before. Operating margin was 20.6%, net earnings $255M (21.7% of revenue).
Zoom Communications, Q1 FY26: revenue $1.2B (+3% year over year), operating margin 20.6%, net earnings $255M, operating cash flow $489M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.2B | -0.8% | +3% |
| Gross profit | $896M | -0.1% | +3% |
| Operating profit | $242M | +7% | +19% |
| Net earnings | $255M | -31% | +18% |
| Operating cash flow | $489M | +15% | -17% |
| Free cash flow | $463M | — | -19% |
What changed
Revenue was $1.2B in Q1 FY26, up 3% year over year and down 1% from the previous quarter.
Gross margin was 76.3%, up 0.2 points from a year earlier. Operating profit was $0.24B, a 20.6% margin (up 2.8 points year over year). Of the extra revenue versus a year earlier, 115% reached operating profit, above the 18% margin then. Operating expenses fell 2% while revenue rose 3%. Net earnings were $0.25B, up 18% year over year. The effective tax rate was 19.4%. Non-operating items added $0.07B, 23% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.49B (down 17% year over year), 192% of net earnings. Non-cash charges added back $0.04B of depreciation and amortization and $0.20B of share-based compensation. After purchases of property and equipment ($0.03B), free cash flow as the company reports it was $0.46B.
Questions
What was Zoom Communications' revenue in the first quarter fiscal 2026?
Zoom Communications (ZM) reported revenue of $1.2B for the first quarter fiscal 2026 (Q1 FY26), +3% from a year earlier and -0.8% from the quarter before.
Was Zoom Communications profitable in the first quarter fiscal 2026?
Operating profit was $242M (20.6% of revenue) and net earnings $255M.