Zoom is still finding new ways to cash in on talking to your coworkers. The San Jose company reported that total revenue for the quarter ended April 30 rose 5.5% year over year to about $1.24 billion. Enterprise revenue, its biggest money-maker, climbed roughly 7.2% to $755.7 million. Management also signed off on an extra $1.0 billion for share buybacks and pointed to improving margins as it works to turn Zoom into much more than a basic video meeting app.
According to the Silicon Valley Business Journal, the results topped the high end of Zoom's guidance and were powered in large part by stronger sales to enterprise customers. The outlet notes that Zoom's trailing 12-month net dollar expansion rate for enterprise customers inched up to 99% from 98%, while online churn stayed elevated but stable. The Business Journal described the quarter as an early sign that Zoom's bet on AI-powered services is starting to show up in the numbers.
How AI Is Reshaping Zoom's Product Stack
In its latest shareholder letter and investor deck, Zoom said AI Companion monthly active users more than tripled during fiscal 2026, and the company has started charging for some of that usage through paid options like Custom AI Companion, as outlined in Zoom. Executives are pitching Zoom Workplace as an AI-first system of action that pulls together meetings, phone, chat, docs and whiteboard into workflows that can be automated and, ideally, monetized. That product roadmap, including deals such as the BrightHire acquisition and new AI-powered hiring and contact-center tools, is the main lever Zoom is using to sell deeper deployments into big corporate accounts.
Numbers Behind The Pivot
Zoom's corporate press release shows that non-GAAP operating margin widened to 41.1%, and free cash flow landed at roughly $500.5 million for the quarter, per the company release. The board also authorized another $1.0 billion for share repurchases and issued near-term revenue guidance that keeps the next quarter in the roughly $1.26 billion range, a forecast investors weighed alongside the steady drumbeat of product updates. Whether Zoom Phone, Zoom Contact Center and paid AI add-ons can turn that momentum into sustained growth remains the key test for the coming quarters.
Management told investors it expects to surpass $5 billion in revenue in fiscal 2027 as AI monetization and cross-product deals scale, a projection detailed in Zoom investor materials. For San Jose and the wider Bay Area, the latest quarter suggests one of the region's most recognizable pandemic-era tools is trying to reinvent itself as a broader, AI-driven enterprise platform rather than just the app you used for virtual happy hours.
