# Zoom Video Communications Inc. (ZM) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/ZM/thesis · /stocks/ZM/memo

## Financial Snapshot

---
ticker: ZM
step: 04
generated: 2026-05-13
source: quick-research
---

### Zoom Communications, Inc. (ZM) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $4.10B | $4.39B | $4.53B | +3.1% |
| Non-GAAP Op. Margin | ~38% | ~37% | ~39% | |
| GAAP Operating Margin | ~20% | ~15% | ~25% | |
| Net Income (GAAP) | ~$1.4B | ~$0.1B | ~$1.3B | |
| EPS (non-GAAP diluted) | ~$4.95 | ~$4.99 | ~$5.11 | |

*FY2025: Revenue $4.665B (+3%); Non-GAAP EPS growing ~10% YoY; GAAP operating margin expanded to 26.4%. Q3 FY2026 (ended Oct 2025): Revenue $1.23B (+4.4%).*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$1.6B |
| Free Cash Flow | $1.47B |
| Capital Expenditures | ~$0.1B |
| Cash & Equivalents | ~$7.7B |
| Total Debt | ~$0 (net cash ~$7.7B) |

*Zoom is debt-free with $7.7B in net cash — extraordinary for a ~$22B market cap company. FCF yield (~6.5%) and buybacks ($1B program authorized late 2025) make this a capital return story as well as a growth story. Also holds $2B+ Anthropic equity stake.*

#### Key Ratios (approximate)
- P/E: ~16x (non-GAAP FY2026) | EV/EBITDA: ~10x | FCF Yield: ~6.5%
- Revenue Growth (TTM): ~4% | Non-GAAP Operating Margin: ~41%

#### Growth Profile
Zoom's revenue decelerated from 92% CAGR (FY2020–FY2023 COVID era) to ~3–5% post-normalization. The financial profile is outstanding — 41% non-GAAP operating margins, $1.5B+ FCF, $7.7B net cash — but the growth rate disappointment has kept the stock rangebound at $65–$85 vs. its 2020 peak of $550+. The re-acceleration thesis requires AI Companion monetization to drive enterprise upsell and enterprise seat growth to accelerate from ~7% to double digits.

#### Forward Estimates
- FY2026 guidance: Revenue $4.785–4.795B (~3% growth); non-GAAP EPS ~$5.75–5.80
- Q2 FY2026: Revenue $1.217B (+4.7%) — fastest acceleration in ~3 years; enterprise +7%
- AI Companion Custom: Launched July 2025; paid add-on for enterprise; early monetization
- Buyback: $1B program; stock at ~$75 is attractive relative to $7.7B cash + $2B Anthropic stake
- Anthropic stake: Could be worth $3–5B+ as Anthropic raises at higher valuations

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/ZM/fundamental

## Navigation

- Overview: /stocks/ZM
- Financials (this page): /stocks/ZM/financials
- Thesis: /stocks/ZM/thesis
- Investment Memo: /stocks/ZM/memo
- Coverage universe: /stocks