Takeaways by Saasverse AI
- $1.23B Revenue (4.4% YoY Growth) | GAAP Operating Margin: 25.2% | Operating Cash Flow: $629M (+30.2%)
- Enterprise Revenue: $741M (+6.1%) | AI Companion 3.0 Adoption Rising | $100K+ Accounts: 4,353 (+9%)
- Raised FY Revenue Guidance ($4.85B-$4.86B) | $1B Buyback Authorization | Stock +3% After Hours
Zoom’s financial performance in Q3 FY2026 reflects its ongoing success in adapting to the hybrid work environment, bolstered by its AI-first platform strategy. The company reported $1.23 billion in revenue, a 4.4% year-over-year increase, surpassing market expectations. Enterprise customer revenue led the way with $741 million, up 6.1%, while the number of customers generating over $100,000 in annual revenue climbed 9% to 4,353. Zoom’s GAAP operating margin reached 25.2%, and its non-GAAP margin was even more impressive at 41.2%. Operating cash flow surged 30.2% year-over-year to $629 million, underscoring strong financial management.
CEO Eric S. Yuan credited the results to the company’s AI-focused strategy, which continues to enhance user experience and collaboration. Notably, the Q3 launch of AI Companion 3.0 has seen significant adoption, offering intelligent insights, low-code development support, and realistic AI avatars. Additionally, Zoom’s new AI-powered tools, such as the custom-built AI Companion and Zoomie for hybrid meetings, have strengthened its foothold in the customer experience (CX) domain, contributing to one of the best quarters for its CX business. Further, the company’s collaboration with Nvidia to implement NeMo open technology highlights its commitment to expanding AI applications in specialized sectors like finance, healthcare, and government.
Zoom also demonstrated confidence in its growth trajectory by revising its FY2026 revenue guidance upward to a range of $4.85 billion to $4.86 billion, with adjusted EPS guidance raised to $5.95-$5.97. The company authorized an additional $1 billion in share buybacks after repurchasing approximately 5.1 million shares during the quarter. These moves signal robust capital allocation strategies aimed at enhancing shareholder value.
Saasverse Insights
The market responded positively to the strong results and optimistic guidance, with Zoom’s stock rising over 3% in after-hours trading. As the hybrid work model persists and AI continues to transform workplace tools, Zoom’s strategic investments in AI and customer-centric solutions position it well for sustained growth in the competitive SaaS landscape. Looking ahead, maintaining innovation momentum and expanding its enterprise client base will be critical for Zoom to capitalize on emerging opportunities.