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Live: Complete Coverage of Zoom’s Q3 Earnings

By Joel South Published Nov 24, 3:30PM EST

Quick Read

Zoom (ZM) reports fiscal Q3 2026 results with expectations of mid-single-digit growth and continued margin stability.
Zoom Contact Center delivers high double-digit growth with nine of the top ten recent deals displacing incumbent cloud providers.
Enterprise revenue grew 7% year-over-year and remains the core driver of FY26 growth.

Live Updates

Guidance Update

Nov 24, 2025 at 4:16 PM EST

Guidance Item	New Guidance	Prior Consensus	Direction
Q4 Revenue	$1.230B to $1.235B	~$1.23B	⚖️ In line
Q4 EPS (Non-GAAP)	$1.48 to $1.49	~$1.47	📈 Raised
FY26 Revenue	$4.852B to $4.857B	$4.83B	📈 Raised slightly
FY26 EPS (Non-GAAP)	$5.95 to $5.97	$5.87	📈 Raised

EPS is the standout. Full-year non-GAAP EPS is now almost 10 cents above Street expectations, reflecting cost discipline and operating leverage.

KPI	Q3 FY26	YoY	Why It Matters
Enterprise Revenue	$741.4M	+6.1 percent	Core engine of growth and a proxy for corporate demand.
Customers > $100K TTM	4,363	+9.2 percent	Shows continued traction with high-value accounts.
Non-GAAP Operating Margin	41.2 percent	+230 bps	Margin strength continues despite AI usage scaling.
Free Cash Flow	$614.3M	+34 percent	50 percent FCF margin underscores strong cash efficiency.
Online Revenue	$488.4M	+2 percent	Stable, but still a drag relative to Enterprise.
Net Dollar Expansion (Enterprise)	98 percent	Flat	Not expanding, but comfortably stable.

Management Commentary

Nov 24, 2025 at 4:15 PM EST

CEO Eric Yuan:
“Zoom is continuing to build on our vision of an AI first platform… AI Companion adoption [is] growing meaningfully. This was one of our best CX quarters, with broad AI adoption across major deals.”

Interpretation:
The company positioned Q3 as a proof point that AI is becoming a real revenue and pipeline driver. Broad adoption across large CX deals validates the Contact Center growth vector and supports the FY27 monetization narrative.

Zoom Up After Earnings

Nov 24, 2025 at 4:08 PM EST

Metric	Actual	Estimate	Beat or Miss
Revenue	$1.2298B	$1.21B	✅ Beat
EPS (Non-GAAP)	$1.52	$1.44	✅ Beat

Zoom posted a clean beat on both revenue and EPS, powered by 6.1 percent Enterprise growth, 41.2 percent non-GAAP operating margin, and a massive $629 million in operating cash flow. AI Companion adoption was a central highlight, with management calling Q3 one of its best Contact Center quarters. With the stock up more than three percent after hours, investors are responding to resilient demand, strong margins, and a material guide raise for FY26 EPS.

What's at Stake

Nov 24, 2025 at 4:02 PM EST

Zoom Video Communications Inc (NASDAQ: ZM | ZM Price Prediction) reports Q3 fiscal 2026 earnings after the close today, with Wall Street expecting non-GAAP EPS of $1.44 on revenue of $1.21 billion. The consensus marks a 4.3% earnings increase from $1.38 in Q3 fiscal 2025.

Zoom enters with an eight-quarter beat streak intact—averaging a 17.4% surprise—but faces sequential pressure after Q2’s $1.53 result. Prediction markets assign a 95.3% probability of another beat, though confidence has cooled 4.7% in 24 hours.

Shares traded at $78.74 today, up 0.59%, after hitting an intraday high of $80.27. The stock carries a forward P/E of 13.05 against a trailing 20.69, implying continued earnings growth expectations.

Key metrics to watch: enterprise revenue acceleration (up 5.9% in Q2 versus flat online revenue), AI product adoption rates, and operating margin expansion beyond Q2’s 39.8%. Analysts maintain a $93.04 average target, suggesting 18% upside.

Valuation

Nov 24, 2025 at 3:30 PM EST

At 16x forward EPS and low-single-digit revenue growth, Zoom screens as a profitable, cash-rich communications platform transitioning toward an AI-powered enterprise workflow suite.

The bull case hinges on Contact Center scale and Custom AI Companion monetization inflecting in FY27; the bear case argues that growth remains capped by a mature meetings market and competitive AI pricing from hyperscalers. With consensus modeling stable margins and modest growth, the upcoming print serves as a key checkpoint on Zoom’s ability to convert usage-based AI adoption into revenue acceleration.

Zoom (Nasdaq:ZM) reports fiscal Q3 2026 results after the close, with expectations centered on modest mid-single-digit growth and continued margin stability. The company enters the print with strong momentum from its Q2 beat, revenue +4.7 percent YoY and EPS well above guidance, and a heightened investor focus on AI monetization, Contact Center pipeline velocity, and the durability of Enterprise demand in a dynamic macro.

Estimates Snapshot

Revenue: $1.21B
EPS (Normalized): $1.44
Next Qtr EPS: $0.81
FY 2026 Revenue: $4.83B
FY 2026 EPS: $5.87
FY 2027 Revenue: $5.00B
FY 2027 EPS: $3.45

The Q3 revenue estimate implies roughly 3 percent YoY growth, consistent with management’s last outlook. FY26 revenue growth is pegged near 3.5 percent, while EPS growth remains above 6 percent YoY, continuing Zoom’s profile as a high-margin, low-growth cash generator.

Key Areas to Watch

AI Companion engagement and pathway to monetization- Management highlighted 4x growth in monthly active AI users and rising usage across pre-meeting prep, post-meeting tasks, Zoom Phone call summaries, and Zoom Docs content generation. Last quarter emphasized that Custom AI Companion and agentic automation will be central to FY27 monetization, with FY26 revenue contribution limited but pipeline expanding.

Contact Center momentum and cloud displacement wins- Zoom Contact Center continues to deliver high double-digit growth, with nine of the top ten recent deals displacing incumbent cloud providers. AI-native capabilities, including Virtual Agent 2.0 and agent-assist workflows, are driving competitive differentiation. Investors will watch whether sequential bookings remain elevated and if new CCaaS innovations (auto-dialer, departmental expansions) broaden deal sizes.

Zoom Phone as a platform gateway- Zoom Phone maintained mid-teens ARR growth and is increasingly serving as an entry point into broader Workplace and Contact Center deployments. CFO commentary pointed to rising AI adoption within Phone and deeper integration with ZVA and Revenue Accelerator, supporting expansion opportunities in SMB and enterprise segments.

Enterprise stabilization vs. Online flatness- Enterprise revenue grew 7 percent YoY last quarter and remains the core driver of FY26 growth. Online is expected to remain flat for the year despite modest benefit from the Pro SKU price increase ($10–$15M of incremental FY26 revenue). Signs of weakening SMB sentiment or slowing Enterprise expansion would be a negative surprise.

Gross margin durability amid AI cost pressure- Non-GAAP gross margin reached 79.8 percent in Q2, benefiting from cloud-to-colo optimization and model-efficiency improvements. Investors will watch whether margin traction persists as AI usage scales and inferencing costs rise, management reiterated long-term targets near 80 percent.

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About the Author Joel South →

Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.

He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.