Zoom Video Communications, Inc. is a leading technology company headquartered in San Jose, California, known primarily for its video conferencing platform that has revolutionized remote communication. Founded in 2011 by Eric Yuan, Zoom offers a suite of products and services that facilitate video and audio conferencing, collaboration, chat, and webinars across various devices and locations. Zoom’s intuitive, reliable, and high-quality service has made it indispensable for businesses, educational institutions, and individuals, especially in the era of remote work and learning. The company’s commitment to innovation is evident in its continuous enhancement of features, such as the AI Companion 2.0, aimed at improving user experience and expanding its capabilities beyond traditional video conferencing. So, this company has become synonymous with virtual meetings and continues to play a pivotal role in connecting people globally.
Zoom Fiscal Q3 2025
Zoom Video Communications (ZM) reported strong fiscal Q3 2025 results, with total revenue reaching a 4% year-over-year increase. Also, the company posted an adjusted EPS surpassing analyst expectations.
However, Zoom posted higher operating expenses in Q3. This was primarily due to increased investments in innovation and product development, including the launch of new features like the premium Custom AI Companion and single-use webinar options.
These increased costs impacted Zoom’s profit margins, which was a concern for investors despite the company’s strong revenue growth.
Earnings Highlights:
- Revenue: $1.18 billion, up 4% year-over-year.
- Adjusted EPS: $1.38, beating analyst estimates.
- Net Income: $207.1 million, up from $141.2 million last year.
- Enterprise Customers: 192,400, an increase of 800 from the previous quarter.
- Cash Balance: Approximately $7.7 billion.
Full Fiscal Year 2025 Outlook
- Revenue: Zoom projects full-year revenue to be between $4.656 billion and $4.661 billion.
- Earnings Per Share (EPS): The company expects full year adjusted EPS to be in the range of $5.41 to $5.43.
- Customer Growth: Zoom anticipates continued growth in its enterprise customer base, driven by the demand for its new features and services.
Q4 2025 Outlook
- Revenue: Zoom expects Q4 revenue to be in the range of $1.175 billion to $1.180 billion.
- Earnings Per Share (EPS): The company anticipates Q4 adjusted EPS to be between $1.29 and $1.30.
- Market Expansion: Zoom aims to expand its market presence, particularly in international markets, despite potential regulatory and compliance challenges.
The board and executive team expressed confidence in Zoom’s growth trajectory.
Board Statements
During Zoom’s Q3 2025 earnings call, the board and executive team shared several key points:
- Eric Yuan, Founder and CEO: Yuan expressed satisfaction with the company’s performance, highlighting the successful launch of new features like the premium Custom AI Companion and single-use webinar options. He emphasized Zoom’s commitment to innovation and expanding its market presence.
- Michelle Chang, CFO: Chang provided a detailed financial overview, noting the strong cash flow and $7.7 billion cash balance. She also discussed the company’s stock repurchase program, which was increased by $1.2 billion, bringing the total authorization to $2 billion.
- Charles Eveslage, Head of Investor Relations: Eveslage reiterated the company’s positive outlook for Q4 2025 and the full fiscal year. He mentioned the forward-looking statements regarding financial and business trends, including potential challenges and opportunities.
The board’s overall tone was optimistic, focusing on Zoom’s growth potential and strategic initiatives to maintain its competitive edge in the market.
Impact on the Stock Market
After Zoom released its Q3 2025 earnings report, the market reacted negatively, with the company’s stock declining by 4%. This decline could be attributed to concerns about increased competition in the video conferencing market and higher operating expenses impacting profit margins, despite the company’s strong revenue growth and positive earnings report.
