stockrowWhat it does
Zoom Communications sells software that helps people communicate, collaborate and serve customers. Founded in 2011 and headquartered in San Jose, the company is led by President and Chief Executive Officer Eric S. Yuan. Its customers range from individuals and entrepreneurs to global enterprises.
Zoom Workplace brings together tools for video meetings, business phone calls, team chat, documents and digital whiteboards. For example, Zoom Meetings lets people share video, voice, chat and content across devices, while Zoom Phone provides businesses with calling and voicemail features. Zoom Rooms connects meeting-room equipment with the company’s meeting software.
Zoom also sells software for customer-facing work. Zoom Contact Center helps organizations handle interactions across channels including voice, video, SMS and webchat. Zoom Revenue Accelerator analyzes customer conversations for sales teams, and Zoom Events helps customers manage virtual and hybrid events. Workvivo provides tools for internal communication, employee recognition and intranets.
Zoom AI Companion works across several of these products. Its functions include creating meeting summaries, drafting chat messages, transcribing voicemail and assisting contact-center agents. It uses both Zoom’s own AI models and models from other providers. Developers can also use Zoom’s tools to build applications, connect other software to Zoom or embed its technology in their own products.
How it makes money
Zoom’s revenue is driven by subscriptions to Zoom Workplace and Zoom Business Services. Subscription revenue is primarily driven by the number of paid licenses within a customer and purchases of additional products. Zoom reports one segment.
Fiscal 2026 revenue: $4,868.8 million.
Zoom Workplace is sold in Pro, Business and Enterprise bundles, with plans for education, health care and government. Customers can buy Zoom Phone as a standalone service or as an add-on to Zoom Meetings, with regional and global calling plans. Zoom Contact Center is another subscription offering. Workvivo has a monthly subscription and optional features for an additional fee.
Zoom AI Companion is included at no additional cost with eligible paid Zoom services and is also available as a standalone offering. Customers can use a customized version to connect the assistant to internal data sources and selected third-party applications. The company also sells services for events, webinars and meeting rooms.
Zoom uses free access as a way to introduce users and meeting participants to its platform. It seeks to convert some of those users to paid plans and to sell more products or licenses as organizations expand their use. Its sales routes include self-service online purchases, direct sales, resellers and strategic partners.
For Enterprise customers, Zoom tracks how subscription revenue from the same group changes through added users and products, contractions and customer losses. Its trailing 12 month net dollar expansion rate for Enterprise customers was 98% as of January 31, 2026.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Reportable Segment | $4.9 billion | 100.0% | 4.36% |
Customers and how it sells
Zoom serves individuals, small and medium-size businesses, and large organizations across industries including education, finance, government, health care, manufacturing, retail and software. No individual customer represented more than 10% of total revenue in the fiscal year ended January 31, 2026.
Enterprise customers are business units engaged by Zoom’s direct sales team, resellers or strategic partners. They represented 60.3% of fiscal 2026 revenue. Online customers subscribe directly through Zoom’s website. The online group includes individual consumers, solopreneurs and small and medium-size businesses.
Zoom had 4,468 customers contributing more than $100,000 of trailing 12 months revenue as of January 31, 2026. These customers accounted for 32.8% of fiscal 2026 revenue. The company’s field sales representatives and product specialists are organized by subscription size, region and industry; its online channel supports self-service purchases.
The Americas generated $3.5 billion of fiscal 2026 revenue, or 72.1% of the total. Europe, the Middle East and Africa generated $769.9 million, while Asia-Pacific generated $590.7 million. Zoom has customers, offices and data centers in multiple regions.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Americas | $3.5 billion | 72.1% | 4.68% |
| EMEA | $769.9 million | 15.8% | 3.66% |
| APAC | $590.7 million | 12.1% | 3.37% |
Suppliers and costs
Zoom operates a software platform rather than describing a manufacturing operation. Video communication requires computing resources and network bandwidth. Zoom uses globally distributed cloud infrastructure to route meetings, and it had 20 co-located data centers globally as of January 31, 2026. If data centers or cloud hosting services cannot keep up with capacity needs, customers may experience delays or interruptions.
For AI Companion, Zoom combines its own models with third-party models, including models from OpenAI and Anthropic. Zoom also works with hardware, software and telecommunications partners. Customers using Zoom Phone can retain their existing phone service providers through connections to the Zoom Phone Cloud.
The company’s spending includes sales and marketing, research and development, employees, and infrastructure. Its research teams work on AI, communication products, security, audio and video quality, and integrations. Zoom also has commitments for office and equipment leases and non-cancelable purchases. Future capital requirements depend on factors including revenue growth, subscription renewals, spending on sales and product development, international expansion and investment in data centers.
- Revenue$4.9B
- Cost of revenue−$1.1B
- Research and development−$844.9M
- Selling, general and administrative−$1.8B
- Operating income$1.1B
Competitive position
Zoom competes across several communications and collaboration markets. In meetings, it faces Cisco Webex and GoTo, as well as Microsoft 365 with Teams and Google Workspace with Meet. Microsoft and Google bundle communications products with broader productivity software. In business communications and phone services, Zoom names Avaya, RingCentral and 8x8 as competitors. In contact centers, it competes with Five9, Genesys and NICE inContact. Consumer-facing platforms from Amazon, Apple and Facebook can also serve small or medium-size businesses.
Zoom identifies ease of use, reliability, brand awareness, functionality and the ability to use existing infrastructure among its competitive factors. Its App Marketplace offers more than 3,100 apps, and its developer platform lets customers build integrations or embed Zoom technology in their products. The company also offers multiple communications products on the same platform and includes AI Companion with eligible paid services.
Our reading: The breadth of Zoom’s products and integrations can help customers incorporate it into multiple workflows, but the presence of bundled productivity suites limits how much differentiation that breadth provides on its own. Our reading: Familiarity with Zoom Meetings and its brand can support adoption, while competing services and the need to retain and upgrade users constrain that advantage.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Microsoft | Meetings and bundled productivity software through Teams | High |
| Meetings and bundled productivity software through Meet | High | |
| Cisco Webex | Web-based meetings | Medium |
| GoTo | Web-based meetings | Medium |
| Avaya | Business communications and phone services | Medium |
| RingCentral | Business communications and phone services | Medium |
| 8x8 | Business communications and phone services | Medium |
| Five9, Inc. | Contact centers | Medium |
Growth opportunities
Zoom’s growth strategy centers on acquiring customers, expanding sales to existing organizations and adding products. It uses free users and their meeting attendees to introduce the platform, then combines online sales with direct representatives, resellers and partners to pursue paid upgrades. Within existing customers, it seeks adoption by additional teams and departments and sales of phone, contact-center, events and employee-experience products.
The company is investing in AI features across its platform, including meeting summaries, task suggestions, knowledge retrieval and assistance for customer-facing teams. Its AI Companion uses multiple models, and Zoom is developing agentic capabilities. Zoom also intends to expand its developer ecosystem so customers and partners can build integrations and applications using its technology.
International expansion is another part of the strategy. Zoom offers translated captions to support communication across languages, and Zoom Phone provides native public telephone network connectivity in more than 45 countries and territories as of January 31, 2026. The company also selectively pursues acquisitions aligned with its strategic objectives.
Revenue was $4,868.8 million in the fiscal year ended January 31, 2026, compared with $4,665.4 million in the prior fiscal year. Zoom’s Enterprise net dollar expansion rate remained at 98% as of January 31, 2026; the company attributes pressure on expansion in recent years partly to slower hiring and reductions in customers’ seat counts.
- $4.1BFY2022
- $4.4BFY2023
- $4.5BFY2024
- $4.7BFY2025
- $4.9BFY2026
- $5.1BFY2027 guidance
Structural risks
- Customer acquisition and retention: Zoom’s business depends on attracting new customers, retaining existing ones, selling them additional products and upgrading free users to paid offerings. Reductions in customer technology budgets or consolidation of spending on competitors’ platforms can affect demand.
- Competition and pricing: Zoom faces competitors across meetings, productivity suites, business communications and contact centers. Changes in competitors’ products or pricing, and consolidation among competitors, can affect its results.
- Service reliability and capacity: Data centers or cloud hosting services may not keep pace with capacity needs, causing delays or interruptions. Outages or performance problems can lead to customer losses, refunds, damage claims or additional support costs.
- Privacy and security: Actual, alleged or perceived privacy violations and security vulnerabilities or breaches can lead to customer losses, lawsuits, regulatory action, negative publicity and reputational harm.
- Enterprise spending: Zoom has experienced longer sales cycles and continued caution in enterprise spending. Slower hiring and customer seat-count reductions have affected expansion among existing Enterprise customers.
- International operations: Operating across jurisdictions exposes Zoom to differing privacy, telecommunications and data-protection rules, as well as potential government interference, trade tensions and limits on intellectual-property protection.
Bottom line
Our reading
Our reading: Zoom is a subscription software business built around communications, with opportunities to sell more tools to the organizations already using its platform. Its reach and integrations support that model, but large bundled rivals compete for the same workflows. Enterprise expansion below 100% and the need to keep services reliable show why retention, product adoption and infrastructure remain central to the business.