Zoom Communications Inc (NASDAQ:ZM) reported financial results for the third quarter after the market close on Monday. Here’s a rundown of the communications company’s report.
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Q3 Highlights: Zoom posted revenue of $1.23 billion for the third quarter, beating the consensus estimate of $1.21 billion. The company reported third-quarter adjusted earnings of $1.52 per share, beating analyst estimates of $1.44 per share, according to Benzinga Pro.
Total revenue was up 4.4% on a year-over-year basis. Enterprise revenue was up 6.1% year-over-year to $741.4 million, and online revenue was up 2% year-over-year to $488.4 million.
Zoom said online monthly average churn was 2.7% in the quarter. The company ended the quarter with 4,363 customers contributing more than $100,000 in trailing 12 months revenue, up 9.2% year-over-year.
Net cash provided by operating activities was $629.3 million in the third quarter and free cash flow came in at $614.3 million. Zoom ended the period with $7.0 billion in cash, cash equivalents and marketable securities.
“Zoom is continuing to build on our vision of an AI‑first platform that helps people connect and collaborate more seamlessly,” said Eric Yuan, founder and CEO of Zoom.
“This quarter we announced AI Companion 3.0, and we’re thrilled to see AI Companion adoption grow meaningfully. We’re also seeing strong momentum with Custom AI Companion and our AI‑first Customer Experience suite, which helped make this one of our best CX quarters, with broad AI adoption across major deals.”
What’s Next: Zoom expects fourth-quarter revenue to be in the range of $1.23 billion to $1.235 billion versus estimates of $1.228 billion. The company anticipates fourth-quarter adjusted earnings of $1.48 to $1.49 per share versus estimates of $1.45 per share.
Zoom also raised its fiscal 2026 guidance. The company now expects full-year revenue of $4.852 billion to $4.857 billion, up from prior guidance of $4.825 billion to $4.835 billion. Analysts are looking for full-year revenue of $4.834 billion.
Zoom raised its full-year adjusted earnings outlook from a range of $5.81 to $5.84 per share to a new range of $5.95 to $5.97 per share, versus estimates of $5.88 per share.
Zoom’s management team will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
ZM Price Action: Zoom shares were up 3.56% in after-hours, trading at $81.39 at the time of publication on Monday, according to Benzinga Pro.
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