- Revenue Growth: Q4 FY '26 revenue reached $1.25 billion (5.3% YoY), with Enterprise revenue contributing 61% ($762.5 million) and growing 7.1% YoY.
- AI Product Momentum: Zoom Contact Center (ZCX) ARR grew in high double digits, and 7 of the top 10 Q4 deals included paid AI, reflecting strong demand for AI-driven solutions.
- AI Companion Adoption: AI Companion 3.0ās monthly active users tripled YoY, while MAUs using AI via the side panel doubled QoQ, signaling rapid user engagement growth.
- FY '27 Guidance: Full-year revenue projected at $5.065ā5.075 billion (4.1% YoY growth), with non-GAAP operating income expected to reach $2.05ā2.06 billion and margins at 40.5% midpoint.
AI-Driven Products Fuel Growth
Zoom's AI-driven products are gaining traction, with ZCX ARR growing in high double digits and 7 of the top 10 deals including paid AI. The company's AI Companion 3.0 has seen significant adoption, with monthly active users more than tripling year-over-year. The custom AI Companion is expected to drive growth in FY '27, with already closed big deals in Q3 and Q4.
Guidance and Outlook
For Q1 FY '27, Zoom expects revenue to be $1.22 billion to $1.225 billion, representing 4.1% year-over-year growth. For FY '27, revenue is expected to be $5.065 billion to $5.075 billion, representing 4.1% year-over-year growth, with non-GAAP operating income of $2.05 billion to $2.06 billion. The company's guidance assumes additional value will be realized through price increases and AI monetization.
Valuation and Growth Prospects
Zoom's current valuation metrics indicate a P/E Ratio of 11.54, P/S Ratio of 4.55, and EV/EBITDA of 11.17. Analysts estimate next year's revenue growth at 4.4%. With a strong track record of innovation and a growing portfolio of AI-driven products, Zoom is well-positioned for long-term growth. As noted by Zoom's CEO, Eric Yuan, the company's product velocity improvements, driven by AI coding tools, have accelerated innovation and sped up product development.
Key Drivers of Growth
The company's Enterprise revenue growth is expected to be the main driver of growth in FY '27, with a focus on the "better together" story, combining products like Phone, Contact Center, and AI. The acquisition of BrightHire is also expected to contribute to growth, with a focus on AI-powered hiring solutions. With a net retention rate of 98% in Q4, Zoom is optimistic about its long-term prospects, driven by progress in AI monetization and product diversification.