Executive Summary

Q4 FY25 revenue was $1.184B, +3.3% YoY (constant-currency +3.6%), with non-GAAP operating margin of 39.5% and GAAP operating margin of 19.0% . Management said results beat top-line and profitability guidance; revenue was ~$4M above the high end and non-GAAP EPS of $1.41 was $0.11 above the high end of guidance .
Enterprise strength (+5.9% YoY to $706.8M) offset a modest Online decline (-0.4% YoY); Online churn hit 2.8% (record low for Q4), while >$100k TTM customers rose 7.3% YoY to 4,088 . Deferred revenue grew 7% YoY to ~$1.35B, above the 5–6% outlook given last quarter, and RPO rose 6% YoY to ~$3.8B, with 59% to be recognized in 12 months .
FY26 guide implies modest growth: revenue $4.785–$4.795B (~2.7% YoY; ~3.1% cc), non-GAAP OI $1.85–$1.86B (~39% margin), FCF $1.68–$1.72B; Q1 FY26 revenue $1.162–$1.167B with ~38% non-GAAP OI margin and one fewer day than prior year .
Strategic catalysts highlighted: largest Contact Center ARR deal (>15k agents), Workvivo customer growth +89% YoY and three >$1M ARR deals, and a Zoom Workplace win with Amazon; Custom AI Companion (target ~$12/seat) expected to begin monetization in FY26 H2 while core AI Companion remains bundled to drive stickiness .

What Went Well and What Went Wrong

What Went Well
- Revenue/EPS beat internal guidance; non-GAAP OI of $468M and non-GAAP EPS of $1.41 exceeded the high end as operational efficiency offset AI investment .
- Enterprise momentum: largest ever Contact Center ARR deal (>15k agents) with a Fortune 100 U.S. tech company; >$100k TTM customers +7.3% YoY; Enterprise now ~60% of revenue (+2 pts YoY) .
- Workvivo and platform traction: Workvivo customers +89% YoY with three >$1M ARR wins; Amazon selected Zoom Workplace; AI Companion adoption up 68% QoQ, reinforcing AI-first positioning .
What Went Wrong
- Online revenue was slightly negative YoY (-0.4%), though churn improved to 2.8%; management still guides Online to flat-to-slightly down in FY26 .
- Non-GAAP gross margin dipped to 78.8% due to AI investments (still targeting ~80% long term); macro remains “mixed but stable,” with headlines (layoffs, etc.) tempering sentiment .
- FY26 top line guide (~2.7% YoY; ~3.1% cc) remains below prior “mid-single-digit” long-term narrative, with management emphasizing enterprise-led growth while Online drags near term .

Financial Results

Metric	Q2 FY2025	Q3 FY2025	Q4 FY2025
Revenue ($USD Millions)	$1,162.5	$1,177.5	$1,184.1
YoY Revenue Growth %	2.1%	3.6%	3.3%
GAAP Diluted EPS ($)	$0.70	$0.66	$1.16
Non-GAAP Diluted EPS ($)	$1.39	$1.38	$1.41
GAAP Operating Margin %	17.4%	15.5%	19.0%
Non-GAAP Operating Margin %	39.2%	38.9%	39.5%
Operating Cash Flow ($USD Millions)	$449.3	$483.2	$424.6
Free Cash Flow ($USD Millions)	$365.1	$457.7	$416.2

Segment revenue breakdown:

Segment	Q2 FY2025 ($M)	Q3 FY2025 ($M)	Q4 FY2025 ($M)
Enterprise Revenue	$682.8 (+3.5% YoY)	$698.9 (+5.8% YoY)	$706.8 (+5.9% YoY)
Online Revenue	$479.7 (flat YoY)	$478.7 (flat YoY)	$477.3 (-0.4% YoY)

KPIs:

KPI	Q2 FY2025	Q3 FY2025	Q4 FY2025
Enterprise Customers (approx.)	~191,600	~192,400	~192,600
Customers >$100k TTM	3,933	3,995	4,088
Enterprise TTM Net Dollar Expansion	98%	98%	98%
Online Avg Monthly Churn	2.9%	2.7%	2.8%
Online MRR ≥16 Months	74.4%	74.1%	75.1%

Non-GAAP and adjustments note: Non-GAAP excludes SBC and related payroll taxes, acquisition-related items, restructuring, litigation settlements, gains on strategic investments, and tax effects; this drove non-GAAP OI of $468.0M and 39.5% margin in Q4 vs GAAP OI of $225.1M and 19.0% .

Guidance Changes

Q1 FY2026 and FY2026 issued (new):

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	Q1 FY26	N/A	$1.162–$1.167	New
Non-GAAP Income from Operations ($M)	Q1 FY26	N/A	$440–$445	New
Non-GAAP Diluted EPS ($)	Q1 FY26	N/A	$1.29–$1.31; ~316M shares	New
Revenue ($B)	FY26	N/A	$4.785–$4.795 (cc $4.803–$4.813)	New
Non-GAAP Income from Operations ($B)	FY26	N/A	$1.850–$1.860	New
Non-GAAP Diluted EPS ($)	FY26	N/A	$5.34–$5.37; ~318M shares	New
Free Cash Flow ($B)	FY26	N/A	$1.68–$1.72	New

Q4 FY2025 actual vs prior guidance (from Q3):

Metric	Q4 FY25 Guidance (Q3)	Actual Q4 FY25	Result
Revenue ($B)	$1.175–$1.180	$1.184	Beat (above high end)
Non-GAAP Income from Operations ($M)	$443–$448	$468.0	Beat
Non-GAAP Diluted EPS ($)	$1.29–$1.30	$1.41	Beat

Management added that Q1 FY26 has one fewer day than prior year, and FY26 revenue growth is ~2.7% YoY at midpoint (~3.1% in constant currency) .

Earnings Call Themes & Trends

Topic	Q2 FY25 (Prev)	Q3 FY25 (Prev)	Q4 FY25 (Current)	Trend
AI/Technology	Highlighted AI features in Contact Center; strong FCF growth	Announced AI Companion 2.0 and paid add-ons; Online churn at all-time low	AI Companion MAUs +68% QoQ; Custom AI Companion monetization targeted; federated AI model approach	Accelerating AI adoption/monetization path
Contact Center	Largest single order to-date	Record >20k-seat EMEA deal	Largest ARR deal (>15k agents); majority of deals at elite/premium AI tiers	Strengthening
Workvivo	—	Largest deal with a Fortune 10 company	Customers +89% YoY; 3 deals >$1M ARR	Strengthening
Regional Trends	—	—	Americas +4% YoY; EMEA +2% (+2% cc); APAC +3% (+5% cc)	Modest growth
Macro/Tariffs	Macro risk referenced in disclosures	Macro risk referenced in disclosures	Macro “mixed but stable”; layoffs headlines vs improved churn/downsells	Stable to slightly positive
Gross Margin/Costs	—	—	Non-GAAP GM 78.8% (down slightly on AI investments); long-term ~80% goal reiterated	Investing with efficiency
Healthcare Features	—	—	Clinician-focused AI note-taking, medical features starting March	New vertical features

Management Commentary

“We beat our top line and profitability guidance… Q4 total revenue grew approximately 3% YoY to $1.184B, $4M above the high end… non-GAAP diluted EPS was $1.41, $0.11 above the high end” .
“AI Companion has emerged as a driving force behind our transformation into an AI-first company… adoption… accelerated to 68% quarter-over-quarter” .
“In Contact Center, we achieved our largest [ARR] deal in history… over 15,000 agents… The majority of our deals are now in the higher tier elite or premium packages” .
“Workvivo… record quarter… total number of Workvivo customers grew 89% year-over-year… three deals over $1 million in ARR” .
“Deferred revenue… grew 7% year-over-year to $1.35B, outperforming the 5% to 6% we estimated last quarter… RPO increased 6% YoY to approximately $3.8B; 59% to be recognized over the next 12 months” .

Q&A Highlights

AI monetization and pricing: Custom AI Companion priced around ~$12/seat targeted at enterprise; some FY26 revenue assumed but larger impact expected in FY27; core AI Companion remains bundled to drive stickiness and TCO advantage vs competitors .
Cost/margins for AI: AI usage costs per active user are trending down as expected; efficiencies and federated AI approach (matching model to task) expected to offset AI cost growth to maintain margin framework in FY26 .
Growth drivers FY26: Enterprise expected to be the dominant growth driver; Online guided flat to slightly down; priorities are move upmarket, accelerate channel, and return Online to growth over time .
Go-to-market/channel: 6 of top 10 Contact Center deals driven by channel; increased channel investments planned to scale CCaaS .
Macro/back-to-office: Macro is “mixed but stable”; Zoom supports all working models; continued importance of collaboration tools even with more in-office policies .
Amazon/AWS: Amazon selected Zoom Workplace; leveraging AWS Marketplace is seen as a distribution opportunity; deepening partnership with AWS .

Estimates Context

S&P Global (Capital IQ) consensus for Q4 FY25, Q1 FY26, and FY26 was unavailable at time of analysis due to a daily request limit. As a result, we compare results to company guidance rather than Wall Street consensus [GetEstimates error].
Implications for estimates: Q4 outperformance vs guidance and stronger deferred revenue (+7% YoY vs 5–6% outlook) could support modest upward revisions to near-term revenue/FCF trajectories, but FY26 guide (~2.7% YoY; ~3.1% cc) and management’s assumption of Online flat-to-down provide a conservative anchor .

Key Takeaways for Investors

Enterprise-led resilience with improving quality of revenue: Enterprise +5.9% YoY and record CCaaS/Workvivo wins offset Online softness; Online churn remains at record lows, stabilizing the base .
Beat-and-raise quality vs internal targets: Q4 topped the high end on revenue and EPS; FY26 guide balances continued AI and growth investments with ~39% non-GAAP OI margin and $1.68–$1.72B FCF .
AI strategy is a differentiator: High engagement (MAUs +68% QoQ) and a federated model approach underpin both value and unit economics; Custom AI Companion provides a tangible monetization vector starting FY26 H2 .
CCaaS scaling with channel leverage: Largest ARR deal to date (>15k agents) and majority of deals at AI-rich tiers signal durable upmarket traction; 6 of top 10 CC deals via channel suggests scalable distribution .
Cash generation supports buybacks and optionality: Q4 FCF $416M; FY25 FCF $1.81B; $1.6B buyback authorization remaining as of Jan 31, 2025 .
Watch FY26 mix and cadence: Management assumes Online flat-to-down, enterprise to carry growth; Q1 FY26 has one fewer day; monitoring CCaaS/Workvivo land-expand and AI monetization ramp will be key to estimate revisions .
Narrative focus: AI adoption and monetization ramp, CCaaS competitive displacements, and channel execution are likely stock catalysts; macro headlines remain a swing factor but trends are “mixed but stable” per management .

Appendix: Non-GAAP/Definitions

Non-GAAP excludes SBC (and related payroll taxes), acquisition-related, restructuring, litigation settlements, gains on strategic investments, and tax effects; non-GAAP operating margin = non-GAAP OI / GAAP revenue .
FY26 guidance does not include impact from $1.6B authorized share repurchase remaining as of Jan 31, 2025 .

Sources:

Q4 FY25 press release and financials
Q4 FY25 earnings call transcript
Q4 FY25 8-K (Item 2.02, Exhibit 99.1)
Q3 FY25 press release (for prior guidance/trends)
Q2 FY25 press release (for trend analysis)

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