Zoom Communications, Inc.ZM
NasdaqGS•Technology•Software - Application
Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.
Zoom Communications, Inc. (ZM) reported trailing twelve months revenue of $4.93B as of April 2026, a 5.0% increase year-over-year. Quarterly revenue reached $1.24B, reflecting continued top-line momentum.
Zoom Communications, Inc. generated $2.07B in TTM net income, with quarterly EBITDA of $343.25M. The operating margin expanded from 20.6% to 25.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (25.1%) and net margin (34.4%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 21.7% a year ago, signaling stronger bottom-line efficiency.
ZM trades at a P/E of 13.6x (below the broader market average) and a P/S of 5.7x. The price-to-book ratio of 2.8x reflects a moderate premium to book value.
The company generated $500.50M in free cash flow over the trailing twelve months, a 8.0% increase year-over-year, indicating cash generation ability. The balance sheet shows $12.16B in total assets with no in long-term debt against $9.97B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~21.2%, suggesting durable pricing power and cost discipline.
ROE is positive at ~14.3% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~7.5% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~24.2% — no sign of cost or pricing stress.
FCF covers net income by 1.4x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.8% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation