At a glance
Zoom Video Communications Inc is worth $28.42B, about 16 times its fiscal 2026 earnings. Revenue grew 4.4% to $4.87B in fiscal 2026, with 39.0% kept as profit; over 5 years it has grown 12.9% a year. It pays no dividend; it spent $3.71B buying back its shares over FY2022–FY2026. The stock returned +14.4% over the past year with dividends reinvested and −18.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 14.0% in the 2020 crash (S&P 500: 33.7%) and 60.2% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Zoom Communications, formerly Zoom Video Communications, sells cloud software that lets people meet, call, message and work together online. Its main bundle, Zoom Workplace, includes Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom Docs and Zoom Whiteboard. A second group, Zoom Business Services, serves sales, marketing and customer-service teams with Zoom Contact Center, Zoom Revenue Accelerator and Zoom Events. Zoom AI Companion is an AI assistant launched in September 2023. It works across the products and can draw on models from OpenAI, Anthropic and NVIDIA as well as Zoom's own.
Customers range from entrepreneurs to global enterprises. Zoom earns its money from subscriptions, which it books as revenue over each contract's term. Many users start on a free plan. Zoom then tries to upgrade them and spread into more teams at the same organization, an approach it calls "land and expand." It sells through its own sales staff, online, and through resellers and partners.
In the fiscal year ended January 31, 2026, revenue was about $4.87 billion, up 4.4%. The Americas supplied 72.1% of revenue, Europe, the Middle East and Africa (EMEA) 15.8%, and Asia-Pacific 12.1%. Zoom kept 77% of revenue as gross profit, meaning sales minus the direct cost of running the service.
Price history
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ZM +14.4% over the year to Oct 27, 2026, total return with dividends reinvested.
How it makes money
By geography
| Americas | $3.51B | 72.1% |
| EMEA | $769.9M | 15.8% |
| APAC | $590.7M | 12.1% |
Latest results
- In Q2 FY2027 (ended Jul 31, 2026), revenue was $1.28B, up 4.9% from a year earlier, and net income was $1.54B (+330.1%).
- For fiscal 2026, revenue was $4.87B (+4.4% year over year; +12.9% a year from FY2021 to FY2026) with a 39% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +12.9% good |
|---|---|
| Operating margin | 23.1% good |
| Free cash flow margin | 39.5% good |
| Return on equity (FY2026) | 19.4% good |
| Return on assets (FY2026) | 15.9% good |
| Cash and investments | $7.25B (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $2.65B | $672.3M | $1.39B |
| FY2022 | $4.10B | $1.38B | $1.47B |
| FY2023 | $4.39B | $103.7M | $1.19B |
| FY2024 | $4.53B | $637.5M | $1.47B |
| FY2025 | $4.67B | $1.01B | $1.81B |
| FY2026 | $4.87B | $1.90B | $1.92B |
Valuation snapshot
| Market value | $28.42B |
|---|---|
| P/E ratio | 15.8 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ZM price data to Oct 27, 2026 | +12.9% | +14.4% | +18.0% | -18.6% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +12.9% |
| 2025 | +5.7% |
| 2024 | +13.5% |
| 2023 | +6.2% |
| 2022 | -63.2% |
| 2021 | -45.5% |
| 2020 | +395.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 53.5% over that stretch · deepest drop along the way 14%, back to its old high 0.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 59.2% over that stretch · deepest drop along the way 60.2%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 57 sales ($19.2M), 57 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 13, 2026 | Eric S. Yuan Chief Executive Officer, Director | sell (plan) | $1.7M |
| Jul 13, 2026 | Eric S. Yuan Chief Executive Officer, Director | sell (plan) | $1.4M |
| Oct 6, 2026 | Eric S. Yuan Chief Executive Officer, Director | sell (plan) | $1.1M |
| Oct 5, 2026 | Eric S. Yuan Chief Executive Officer, Director | sell (plan) | $1.1M |
| Oct 21, 2026 | Michelle Chang Chief Financial Officer | sell (plan) | $1.0M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 6.7% | Dec 31, 2024 |
| Vanguard Capital Management | 5.19% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.08% | Sep 30, 2026 |
ETFs with the most weight in ZM
| CLOU Global X Cloud Computing ETF | 3.9% |
| NEWZ StockSnips AI-Powered Sentiment US All Cap ETF | 3.34% |
| ARVR First Trust Indxx Metaverse ETF | 2.96% |
| CCSO Carbon Collective Climate Solutions U.S. Equity ETF | 2.93% |
| VFLO VictoryShares Free Cash Flow ETF | 2.62% |
| JTEK JPMorgan U.S. Tech Leaders ETF | 2.13% |
| SMRI Bushido Capital US Equity ETF | 1.97% |
| QQJG Invesco ESG NASDAQ Next Gen 100 ETF | 1.91% |
What could go wrong
- Revenue growth has slowed sharply. Revenue rose 4.4% in the fiscal year ended January 31, 2026, against an average of 12.9% a year over five years. Zoom warns that growth could stay flat or decline as the business matures.
- Customers can cancel, shrink or switch. Customers have no obligation to renew. At renewal they may cut licenses or move all their spending to a rival's platform, which is more likely when IT budgets tighten. Free users may never upgrade.
- Outages can disrupt service and trust. Zoom relies on rented data-center space plus Amazon Web Services and Oracle Cloud. Outages have disrupted service before. Future ones could force credits or penalty payments and push customers toward rivals.
- Privacy and security lapses have hurt before. Zoom carries customers' meetings, calls and chats. Its annual report says real or perceived failures to follow privacy and data-protection rules have harmed its reputation and business in the past and could bring significant fines.
- AI features bring legal and competitive risk. Zoom builds generative AI, which creates text such as meeting summaries, into products like AI Companion. It warns this could bring operational problems, legal liability, reputational damage, regulatory scrutiny and competitive risk.
- Dual-class shares concentrate voting control. Zoom has two share classes. Holders from before its initial public offering, including executives and directors, hold concentrated voting control. That limits how much public shareholders can influence corporate decisions.
Recent events
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Executive or board change
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
- Quarterly results released
For income and retirement investors
Zoom pays no dividend, and its annual report says it does not intend to pay one for the foreseeable future. For an income investor, that means the stock produces no regular cash. Any income would have to come from selling shares. Zoom returns money through buybacks instead. It spent about $3.71 billion on its own shares from fiscal 2022 through fiscal 2026, including $1.62 billion in the year ended January 31, 2026. The share price has swung widely. While the broader market fell from February 19 to March 23, 2020, Zoom shares rose 53.5%. In the 2022 bear market, a long market slide, they fell 60.2% between January 3 and September 26, 2022. They had not regained that January peak as of October 27, 2026. At their worst, the shares were 90.3% below an earlier high. A single stock like Zoom carries more risk than a diversified fund that spreads money across many companies.
Questions investors ask
How does Zoom make money?
Zoom makes money by selling subscriptions to its cloud software. Paid plans cover Zoom Workplace tools such as Meetings, Phone, Team Chat, Docs and Whiteboard. They also cover customer-facing products such as Zoom Contact Center and Zoom Events. Many users start on a free plan, and Zoom tries to upgrade them and add more licenses across each organization. In the fiscal year ended January 31, 2026, revenue was about $4.87 billion, with 72.1% from the Americas.
Does Zoom pay a dividend?
No. Zoom paid no dividends from fiscal 2022 through fiscal 2026, and its annual report says it does not intend to pay any for the foreseeable future. Instead, it repurchases its own shares. That reduces the share count and gives each remaining share a larger slice of profits. Repurchases totaled about $3.71 billion over those five years, including $1.62 billion in the year ended January 31, 2026.
Is Zoom still growing?
Yes, but slowly. Revenue rose 4.4% to about $4.87 billion in the fiscal year ended January 31, 2026. That is well below its average growth of 12.9% a year over the five years from fiscal 2021. In the quarter ended July 31, 2026, revenue was about $1.28 billion, up 4.9% from a year earlier. Zoom's growth plan leans on new AI products, more sales to existing customers and its customer-experience tools such as Zoom Contact Center.
How has Zoom stock performed over the long run?
Poorly over five years, better over three. The shares gained 395.8% in 2020, then fell 45.5% in 2021 and 63.2% in 2022. At their worst, they were 90.3% below an earlier high. Over the five years to October 27, 2026, the price fell about 64% in total. Over the three years to that date, it rose about 64%. For 2026, the shares were up 12.9% as of October 27, which covers only part of the year.
What is Zoom's P/E ratio?
About 15.8 as of October 27, 2026. The price-to-earnings (P/E) ratio compares the share price with profit per share. Here that profit is diluted earnings of $6.18 for the fiscal year ended January 31, 2026, nearly double the $3.21 of the year before. Net income of $1.90 billion was well above operating income of $1.12 billion. That means items outside day-to-day operations added to profit, and those may not repeat. As of July 31, 2026, Zoom held about $7.25 billion in cash and investments and reported no borrowings.