Detailed Narrative
AI-Powered System of Action
Zoom is strategically evolving its platform into an AI-powered system of action, moving beyond traditional systems of record and engagement. This transformation is guided by three priorities: elevating the workplace with AI, driving growth of new AI products, and scaling AI-first customer experience. The platform aims to unify internal and external workflows, eliminating silos and enabling continuous customer journeys from conversation to completion, leveraging AI to drive measurable outcomes.
Customer Experience (CX) Momentum
Zoom's CX platform is gaining significant traction, differentiated by its integration within the broader system of action rather than being a standalone solution. ZCX ARR continues to grow in high double digits, accelerating in Q4, primarily driven by AI monetization. Notably, every one of the top 10 CX deals in Q4 included paid AI, and 7 represented competitive displacements. Zoom Virtual Agent (ZVA) Voice, launched only a few quarters ago, was included in 4 of the top 10 CX deals and secured a nearly 7-figure ARR deal with a leading U.S. retailer, demonstrating strong market adoption.
New AI Products and Vertical Workflows
Beyond customer experience, Zoom is expanding its AI revenue streams and extending its system of action to new AI products across various vertical and horizontal workflows. Zoom Revenue Accelerator (ZRA) saw its customer base grow 50% year-over-year. The acquisition of BrightHire in Q4 aims to apply conversation AI to recruiting and hiring. Custom AI Companion is also making significant progress, with customers like Harmonic and Grand Valley State University adopting it wall-to-wall to integrate third-party tools, support knowledge retention, and streamline student-facing processes.
Zoom Workplace and Core Product Strength
The foundation of Zoom's system of action is Zoom Workplace, which saw a major step forward with the launch of AI Companion 3.0. This innovation is transforming meetings into engines of ongoing work. AI Companion monthly active users (MAUs) more than tripled year-over-year, and MAUs engaging AI through the side panel more than doubled quarter-over-quarter. Zoom Phone continues to demonstrate strong competitive wins, including a 140,000-seat deal with a Fortune 10 customer displacing Cisco Calling, and a significant expansion with a leading global bank, adding 50,000 seats for a total of 150,000.
Financial Performance and Shareholder Returns
Zoom reported Q4 revenue of $1.25 billion, exceeding guidance. Full FY26 revenue grew 4.4%, accelerating 130 basis points over FY25. The company also improved profitability, with non-GAAP gross margin reaching 79.7% for FY26 (up 80 bps) and non-GAAP operating margin at 40.4% (up 100 bps). Free cash flow grew 6.4% to $1.9 billion. Zoom repurchased 3.8 million shares for $324 million in Q4, bringing total repurchases under the current plan to 36.3 million shares for $2.7 billion, with an intent to offset dilution annually.
Channel and International Growth
Investments in channel partnerships are proving critical, particularly for Zoom Phone and Contact Center, driving large competitive wins; 9 of the top 10 large Contact Center deals were channel-driven. The channel base continues to grow, with an increasing proportion of new customers originating from channel partners. Internationally, Americas revenue grew 6%, EMEA 5%, and APAC 3%. The company is focused on further international expansion through product diversification, AI monetization, and channel investments, including local investments like a U.K. data center.