NASDAQ$ZM

Zoom Video Communications Inc · Q3 2025 earnings

Q3 2025 earnings · · Investor relations

Briefing

Zoom's Q3 2025 financial performance reflected improved revenue and enterprise growth, alongside a record Zoom Contact Center deal and Workvivo's largest deal with a Fortune 10 company.

Zoom Communications reported a 3.6% year-over-year increase in total revenue, reaching $1,177.5 million in the third quarter of fiscal year 2025. Enterprise revenue grew by 5.8% year-over-year, while online monthly average churn reached an all-time low of 2.7%. The company's GAAP net income was $207.1 million, or $0.66 per share, and non-GAAP net income was $435.1 million, or $1.38 per share.

  • Total revenue for the third quarter reached $1,177.5 million, a 3.6% increase year-over-year.
  • Enterprise revenue grew by 5.8% year-over-year, reaching $698.9 million.
  • GAAP net income was $207.1 million, or $0.66 per share, while non-GAAP net income was $435.1 million, or $1.38 per share.
  • Online monthly average churn hit a record low of 2.7%.

Headline financials

Total Revenue

$1.18B

Previous: $1.14B+3.6%
EPS (adj)

$1.38

Previous: $1.29+7.0%
Capital Expenditures

-$128M

Previous: -$108M-18.3%
Free Cash Flow

$78.8M

Previous: $32.8M+140.3%
Net Income

$207M

Previous: $141M+46.6%
Operating Income

$183M

Previous: $169M+7.9%
Gross Profit

$894M

Previous: $866M+3.2%
R&D Expense

$223M

Previous: $197M+13.3%
Stock-Based Comp

$241M

Previous: $259M-6.9%

Revenue & EPS history

Zoom · Revenue · Quarterly

$1.18B

Q3 2025+3.6%vs Q3 2024
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Zoom · $1.24B total across 2 segments · Q1 2027

  • Enterprise
    $756M
  • Online
    $483M

Forward guidance

Zoom provided guidance for the fourth quarter of fiscal year 2025, expecting total revenue between $1.175 billion and $1.180 billion, and non-GAAP diluted EPS between $1.29 and $1.30. For the full fiscal year 2025, the company anticipates total revenue between $4.656 billion and $4.661 billion, and non-GAAP diluted EPS between $5.41 and $5.43.

Tailwinds

  • Total revenue is expected to be between $1.175 billion and $1.180 billion
  • Revenue in constant currency is expected to be between $1.174 billion and $1.179 billion.
  • Non-GAAP income from operations is expected to be between $443.0 million and $448.0 million.
  • Non-GAAP diluted EPS is expected to be between $1.29 and $1.30
  • Approximately 315 million weighted average shares outstanding.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+2.7%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

44%

14 / 32 earnings

Positive

+52.9%

Q2 2021

Best reaction

-18.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+9.3%+3.4%-10.6%
Q4 2026-11.6%-14.0%-9.0%
Q3 2026+9.8%+8.1%+11.7%
Q2 2026+12.7%+10.6%+15.0%
Q1 2026-0.1%-4.1%-5.2%
Q4 2025-8.5%-9.1%-5.3%
Q3 2025-2.9%-3.7%-0.2%
Q2 2025+15.1%+20.6%+14.2%
Q1 2025-0.5%-1.8%-12.4%
Q4 2024+7.5%+11.8%+5.1%
Q3 2024+2.8%+0.6%+9.0%
Q2 2024-0.7%+2.1%+3.8%
Q1 2024-5.4%-4.5%-3.5%
Q4 2023+0.9%-4.2%-4.5%
Q3 2023-5.5%-7.6%-14.3%
Q2 2023-18.3%-18.2%-23.7%
Q1 2023+5.1%+23.0%+28.3%
Q4 2022-2.0%-13.1%-2.3%
Q3 2022-17.8%-12.4%-23.1%
Q2 2022-15.1%-12.5%-24.5%
Q1 2022-1.3%+1.3%+16.6%
Q4 2021-0.2%-9.7%-14.0%
Q3 2021-13.8%-13.1%-25.1%
Q2 2021+52.9%+23.6%+57.1%
Q1 2021+9.7%+1.7%+28.2%
Q4 2018+28.9%+11.6%+21.2%
Q4 2020+6.4%-3.2%+9.1%
Q3 2020-10.3%-7.7%-3.8%
Q2 2018-1.1%+3.7%-12.5%
Q2 2020-8.7%-14.1%-18.2%
Q1 2018+28.4%+29.4%+15.7%
Q1 2020+20.5%+21.6%+17.7%
Q4 2019
Q3 2018

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