Zoom Posts a Rare Quarterly Earnings Miss, but Underlying Fundamentals Remain Strong

"For a company that had beaten estimates in each of the prior seven quarters, including a remarkable +148% surprise in Q3 FY2026, the miss carries more symbolic weight than its small magnitude suggests. Zoom's Q4 FY2026 EPS miss is narrow in dollar terms but meaningful in context. The company had built a reputation for consistent upside surprises, averaging roughly +28% positive surprise across FY2024 and FY2025."

"The underlying business remains financially healthy. Enterprise revenue had been growing faster than the online segment, +6.1% versus +2.0% YoY in Q3, and the company's AI Companion rollout represents a credible product catalyst. The full-year FY2026 guidance called for revenue of $4.852B-$4.857B and non-GAAP EPS of $5.95-$5.97, which would represent steady if unspectacular progress."

"Investors should focus on Q1 FY2027 guidance and any update on AI Companion monetization. Whether this miss reflects a one-quarter stumble or a trend shift in earnings power is the central question heading into the next report."

Zoom reported Q4 FY2026 results with non-GAAP EPS of $1.44, missing the $1.46 consensus estimate. Revenue reached $1.25B, up 5.3% year-over-year and beating expectations. The earnings miss breaks a significant streak of seven consecutive quarterly beats, with the company previously averaging approximately 28% positive surprises in FY2024 and FY2025. Enterprise revenue grew faster than online segments at 6.1% versus 2.0% year-over-year. Full-year FY2026 guidance projects revenue of $4.852B-$4.857B and non-GAAP EPS of $5.95-$5.97. The company's AI Companion rollout represents a potential product catalyst. The miss raises questions about whether growth is plateauing as post-pandemic tailwinds diminish.

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