Filing Flows › Zoom Communications (ZM) › Q1 FY27
Zoom Communications (ZM) Q1 FY27 earnings results (first quarter fiscal 2027)
10-Q filed May 22, 2026
Zoom Communications (ZM) reported revenue of $1.2B for the first quarter fiscal 2027 (Q1 FY27), +5% from a year earlier and -0.6% from the quarter before. Operating margin was 25.1%, net earnings $426M (34.4% of revenue).
Zoom Communications, Q1 FY27: revenue $1.2B (+6% year over year), operating margin 25.1%, net earnings $426M, operating cash flow $522M. The chart follows the revenue to costs, profit and cash.
| Q1 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.2B | -0.6% | +5% |
| Gross profit | $965M | +1% | +8% |
| Operating profit | $310M | +24% | +29% |
| Net earnings | $426M | -37% | +67% |
| Operating cash flow | $522M | +47% | +7% |
| Free cash flow | $500M | — | +8% |
What changed
Revenue was $1.2B in Q1 FY27, up 5% year over year and down 1% from the previous quarter.
Gross margin was 77.9%, up 1.6 points from Q1 FY26. Operating profit was $0.31B, a 25.1% margin (up 4.5 points year over year). Of the extra revenue versus Q1 FY26, 107% reached operating profit, above the 21% margin then. Operating expenses fell 0% while revenue rose 5%. The fastest-growing cost line was Research & development (+11%). Net earnings were $0.43B, up 67% year over year. The effective tax rate was 19.9%. Non-operating items added $0.22B, 42% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.52B (up 7% year over year), 123% of net earnings. Non-cash charges added back $0.03B of depreciation and amortization and $0.18B of share-based compensation. Working capital and other items used $0.12B. After purchases of property and equipment ($0.02B), free cash flow as the company reports it was $0.50B.
Questions
What was Zoom Communications' revenue in the first quarter fiscal 2027?
Zoom Communications (ZM) reported revenue of $1.2B for the first quarter fiscal 2027 (Q1 FY27), +5% from a year earlier and -0.6% from the quarter before.
Was Zoom Communications profitable in the first quarter fiscal 2027?
Operating profit was $310M (25.1% of revenue) and net earnings $426M.