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How Zoom Communications (ZM) makes money
Zoom Communications (ZM) made $1.3B of revenue in the second quarter fiscal 2027 (Q2 FY27), +5% from a year earlier. Of every dollar of revenue, 77¢ was left as gross profit, 25¢ was left as operating profit, 121¢ was left as net earnings.
Drawing the Sankey…
Where each dollar of revenue goes
| Line | Q2 FY27 | % of revenue |
|---|---|---|
| Revenue | $1.3B | 100.0% |
| Cost of revenue | $292M | 22.8% |
| Gross profit | $985M | 77.2% |
| Operating expenses | $671M | 52.6% |
| Operating profit | $314M | 24.6% |
| Income tax | $453M | 35.4% |
| Net earnings | $1.5B | 120.8% |
| Operating cash flow | $495M | 38.7% |
| Free cash flow | $472M | 37.0% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q2 FY27 | $1.3B | +5% |
| Q1 FY27 | $1.2B | +6% |
| Q4 FY26 | $1.2B | +5% |
| Q3 FY26 | $1.2B | +4% |
| Q2 FY26 | $1.2B | +5% |
| Q1 FY26 | $1.2B | +3% |
| Q4 FY25 | $1.2B | +3% |
From Zoom Communications' 10-Q filed Aug 26, 2026 (on EDGAR).
Questions
How does Zoom Communications make money?
Zoom Communications (ZM) made $1.3B of revenue in the second quarter fiscal 2027 (Q2 FY27), +5% from a year earlier. Of every dollar of revenue, 77¢ was left as gross profit, 25¢ was left as operating profit, 121¢ was left as net earnings.
What is Zoom Communications' profit margin?
Net earnings were $1.5B, 120.8% of revenue, in the second quarter fiscal 2027; the operating margin was 24.6%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.