Zoom reported quarterly revenue that topped analysts’ estimates, a sign of strength for the software maker’s expanded suite of business tools https://t.co/T7VrsBrHo6 ...

Group 1 - The Q3 earnings season for S&P 500 companies has started positively, with 95% of companies reporting results as of November 21, and analysts expecting a 13.4% increase in earnings per share for the quarter [2] - This anticipated growth would represent the fourth consecutive quarter of double-digit earnings growth, accelerating from the 12% growth rate reported in Q2 [2] - Initial expectations for Q3 were lower, with analysts predicting only a 7.9% increase in earnings per share as of September 30 [3] Group 2 - Upcoming earnings reports from companies such as Abercrombie & Fitch, Dick's Sporting Goods, and Burlington Stores will provide insights into the impact of consumer sentiment on purchasing decisions [4] - Additional reports from technology and other sectors are expected from companies including Zoom, Dell, Workday, HP Inc., Deere, and Pony AI [4]

Financial Performance - Total revenue for Q3 FY 2026 was $1,229.8 million, representing a 4.4% year-over-year increase[5] - Enterprise revenue reached $741.4 million, up 6.1% year-over-year[5] - GAAP net income for Q3 was $612.9 million, or $2.01 per share, compared to $207.1 million, or $0.66 per share, in the same quarter last year[6] - Non-GAAP diluted EPS for Q3 was $1.52, up 10.1% year-over-year[5] - GAAP revenue for Q3 2025 was $1,229,835, representing a year-over-year growth of 4.4%[34] - GAAP net income for the nine months ended October 31, 2025, was $1,226,068, up from $642,373 in the same period last year, marking a significant increase of 90.7%[34] - The company reported a basic net income per share of $2.05 for the three months ended October 31, 2025, compared to $0.67 for the same period in 2024, an increase of 205.2%[30] Cash Flow and Expenses - Operating cash flow for Q3 was $629.3 million, a 30.2% increase year-over-year[5] - Free cash flow for Q3 was $614.3 million, compared to $457.7 million in Q3 FY 2025[6] - Cash flows from operating activities for the three months ended October 31, 2025, were $629,326, up from $483,217 in the same period of 2024, an increase of 30.3%[32] - Operating expenses decreased to $647,651 for the three months ended October 31, 2025, from $710,820 in the same period of 2024, a reduction of 8.9%[30] - Free cash flow (non-GAAP) for Q3 2025 was $614,317, compared to $457,733 in Q3 2024, indicating a growth of 34.2%[34] Guidance and Projections - Fourth quarter revenue guidance is projected between $1.230 billion and $1.235 billion[14] - Full fiscal year 2026 revenue is expected to be between $4.852 billion and $4.857 billion[14] Customer Metrics - The number of customers contributing over $100,000 in trailing 12 months revenue increased by 9.2% year-over-year, totaling 4,363 customers[14] Assets and Equity - Total assets as of October 31, 2025, were $11,390,811, compared to $10,988,421 as of January 31, 2025, an increase of 3.7%[28] - Total stockholders' equity increased to $9,286,840 as of October 31, 2025, from $8,935,084 as of January 31, 2025, reflecting a growth of 3.9%[28] Strategic Investments - Strategic investments increased to $1,052,604 as of October 31, 2025, from $591,481 as of January 31, 2025, a rise of 77.8%[28] Revenue and Profitability Metrics - Gross profit for the three months ended October 31, 2025, was $958,065, representing a gross margin of approximately 77.9%[30] - Non-GAAP income from operations for Q3 2025 reached $506,950, compared to $457,794 in Q3 2024, reflecting an increase of 10.7%[34] - GAAP operating margin improved to 25.2% in Q3 2025 from 15.5% in Q3 2024[34] - Operating cash flow margin (GAAP) increased to 51.2% in Q3 2025 from 41.0% in Q3 2024[34] - Revenue in constant currency (non-GAAP) for Q3 2025 was $1,227,416, with a year-over-year growth of 4.2%[34] Stock Repurchase - Zoom's Board of Directors authorized an additional $1.0 billion for stock repurchase, increasing the total authorization to $1.310 billion[10]

Core Viewpoint - Zoom Video is facing increased competition from major players like Microsoft and Google, which necessitates a strategic pivot to remain relevant in the market [3][6][12]. Company Analysis - The excitement surrounding Zoom has diminished since its peak during the COVID-19 pandemic, and it is now viewed as a company needing to adapt to survive [2][4]. - The company is currently competing in a saturated market where Microsoft Teams is integrated into many existing systems, making it difficult for Zoom to gain traction [6][12]. - There is a need for Zoom to explore opportunities in AI and workflow automation to differentiate itself from competitors and avoid being seen as a commodity service [4][8][13]. Competitive Landscape - Microsoft and Google dominate the video conferencing space, making it challenging for Zoom to compete directly [3][6]. - The potential for Microsoft to acquire Zoom has likely passed due to the significant increase in Zoom's stock price, which makes it less attractive compared to building similar technology in-house [5][7]. - Zoom may need to carve out a niche in the small and medium enterprise market, but this is complicated by the widespread use of Microsoft products among these businesses [11][12]. Future Outlook - For Zoom to regain investor interest, it must demonstrate a clear strategy for AI adoption and workflow automation that enhances employee productivity beyond just video conferencing [8][13]. - The company’s ability to pivot towards AI-driven solutions could potentially accelerate growth and improve its market valuation [8].

Core Insights - Zoom Communications, Inc. reported a total revenue of $1,229.8 million for the third fiscal quarter, reflecting a year-over-year increase of 4.4% as reported and 4.2% in constant currency [4][5] - The company emphasized its commitment to an AI-first platform, highlighting the growth in adoption of its AI Companion 3.0 and Custom AI Companion, contributing to strong customer experience metrics [2][4] - The financial results indicate significant profitability, with GAAP EPS increasing by 204.5% year-over-year to $2.01, and non-GAAP EPS rising by 10.1% to $1.52 [4][5] Financial Performance - Total revenue for Q3 was $1,229.8 million, with Enterprise revenue at $741.4 million, up 6.1% year-over-year, and Online revenue at $488.4 million, up 2.0% [4][5] - GAAP operating margin stood at 25.2%, while non-GAAP operating margin was 41.2% [5][36] - Operating cash flow reached $629.3 million, marking a 30.2% increase year-over-year, with a cash flow margin of 51.2% and free cash flow margin of 50.0% [4][5][37] Shareholder Returns - The company repurchased approximately 5.1 million shares in Q3, totaling 32.5 million shares repurchased under the current plan [4][9] - The Board of Directors authorized an additional $1.0 billion for stock repurchase, increasing the total authorization to $1.310 billion [9][11] Customer Metrics - The number of customers contributing over $100,000 in trailing 12 months revenue increased by 9.2% year-over-year, totaling 4,363 customers [4][13] - The trailing 12-month net dollar expansion rate for Enterprise customers was reported at 98% [13] - Online average monthly churn remained stable at 2.7% year-over-year, with 74.4% of total Online MRR from customers with a continual term of service of at least 16 months [13] Financial Outlook - For Q4 FY 2026, total revenue is expected to be between $1.230 billion and $1.235 billion, with non-GAAP income from operations projected between $477.0 million and $482.0 million [13] - The full fiscal year 2026 revenue guidance is between $4.852 billion and $4.857 billion, with non-GAAP income from operations expected between $1.955 billion and $1.960 billion [13]

PresentationEmmanuel Jude Dillipraj RajakarierGroup CEO, COO & Director Good afternoon, everyone, and thank you for joining us today for the update for quarter 3. We, at Minor, of course, very much appreciate your interest and taking the time to join us here today, whether you're joining us here in person or whether you're dialing in today overseas. So a very warm welcome. Before I actually dive into the details, let me start -- let me also start by just giving some overview about the global markets and wha ...

Earnings Reports Overview - The current earnings season is nearing its end, with notable companies reporting during the holiday-shortened week [1] - Retail investors are particularly focused on earnings reports from major companies [1] Company-Specific Earnings Reports - WeRide Inc. (NASDAQ:WRD) and LexinFintech Holdings Ltd. (NASDAQ:LX) reported before the market opened on November 24, both showing better-than-expected results, leading to stock price increases [2] - Zoom Communications Inc. (NASDAQ:ZM) is expected to report third-quarter results after the market closes on November 24, with analysts predicting earnings of $1.44 per share and revenue of $1.21 billion [3] - Alibaba Group Holding Ltd. (NYSE:BABA) will release its Q2 earnings report before the market opens on November 25, with expectations of adjusted earnings of 81 cents per share and revenue of $34.43 billion [3] - Retailers Kohl's Corp. (NYSE:KSS) and Best Buy Co. Inc. (NYSE:BBY) are anticipated to provide insights into consumer behavior with their reports on November 25 [4] - Cleanspark Inc. (NASDAQ:CLSK), Dell Technologies Inc. (NYSE:DELL), and Zscaler Inc. (NASDAQ:ZS) are set to report after the market closes on November 25 [5] - Li Auto Inc. (NASDAQ:LI) and EHang Holdings Ltd. (NASDAQ:EH) will report their results before the market opens on November 26, alongside Deere & Co. (NYSE:DE), which has consistently beaten analyst expectations for 12 consecutive quarters [6] Market Schedule - U.S. stock markets will be closed on November 27 for the Thanksgiving holiday [8] - The stock market will have an early closure at 1 p.m. ET on November 28 [9]

Core Viewpoint - Zoom, once a pandemic favorite, is facing challenges as the market shifts back to in-person work and competition increases from platforms like Microsoft Teams and Google Workspace [2][3][4] Company Performance Expectations - Earnings per share (EPS) is anticipated to be $1.43, with revenue expected to exceed $1.22 billion [4][6] - Key metrics to watch include the performance of Zoom's contact center business, which is seen as a growth area [6][8] Competitive Landscape - Zoom must adapt its strategy to compete with Microsoft and Google, particularly in the realm of AI integration and collaboration tools [9][10][13] - The company is focusing on democratizing its AI features to enhance user engagement without increasing costs [9][11] Future Positioning - Zoom needs to transition from being solely a communication tool to a platform that facilitates collaboration and integrates with other services [7][12][14] - The success of Zoom's enterprise sector and its ability to attract large clients will be critical indicators of future performance [8][16] Industry Outlook - The tech sector is experiencing seat compression due to AI-driven layoffs, which may impact demand for Zoom's services [16][17] - The performance of Zoom could serve as a bellwether for the mid-market segment, reflecting broader trends in the tech industry [16][18]

Zoom Communications Inc. (NASDAQ:ZM) is one of the stocks on Jim Cramer’s game plan for the week. Cramer said that he expects a “decent quarter” from the company. The Mad Money host commented: “So it all starts with a pretty quiet Monday, at least it should be. We’re going to hear from Zoom Communications. Yeah, Zoom. And all I can say about it is while I love it with my, I don’t know, my PC comes loaded with this Teams thing, you probably have it too, it’s the bane of Zoom’s existence. I was always hopin ...

Group 1: Walmart Inc. (NYSE: WMT) - Walmart reported better-than-expected third-quarter financial results on November 20, raising its fiscal year 2026 revenue and adjusted EPS outlook [1] - The company is experiencing growth in e-commerce and its membership model, with management providing strong forward guidance [1] - Walmart is set to transfer its listing from NYSE to Nasdaq, effective December 9 [1] Group 2: Vistra Corp. (NYSE: VST) - Vistra has seen a 25% pullback over the past few months, but analysts maintain an Outperform rating [2] - BMO Capital raised the price target for Vistra from $236 to $245, while Evercore ISI Group increased the price target from $237 to $243 [2] Group 3: Leidos Holdings, Inc. (NYSE: LDOS) - Leidos reported better-than-expected third-quarter results on November 4, with quarterly revenue growth of 7% year over year to $4.47 billion, surpassing the analyst consensus estimate of $4.28 billion [3] - The company also raised its full-year EPS guidance [3] Group 4: Zoom Communications Inc. (NASDAQ: ZM) - Zoom is scheduled to report quarterly earnings on Monday, with analysts expecting earnings of $1.44 per share, up from $1.38 per share in the previous year [4] - The consensus estimate for Zoom's quarterly revenue is $1.21 billion, compared to $1.18 billion a year earlier [4] Group 5: Price Action - Vistra shares fell 3% to close at $168.59 [6] - Leidos shares rose 0.5% to close at $186.49 [6] - Walmart shares fell 1.7% to settle at $105.32 [6] - Zoom shares gained 0.3% to close at $78.63 [6]