Earnings Call Intelligence Subscribe
Home › Call Sheets › ZM › Q1'26
Call sheet · Q1'26

Zoom Video Communications (ZM)

Q1'26 earnings call · held May 21, 2025 · compared with the Q4'25 call · management-credibility review
9/12
Disclosure score
4 medium, 4 low flags
Financial quality
Bottom line
The sleeper story is Contact Center hitting triple-digit million ARR with 65% customer growth - this is becoming a real business that nobody talks about. Meanwhile, everyone will focus on the 3% revenue growth beat, but the real story is enterprise deal elongation despite record-low churn and stable NRR - that's macro pressure hitting even sticky customers. The binding constraint isn't product or competition, it's customer decision-making cycles in an uncertain environment. Eric's quote about Custom AI Companion having 'strong enthusiasm from several Global 2000 trial customers' after being 'only weeks in market' screams classic AI hype without revenue conversion. My view changes if they can convert those AI trials to actual ARR in Q2 or if enterprise deal cycles start normalizing as macro stabilizes.

The 30-second version

  • Custom AI Companion has 'strong enthusiasm from several Global 2000 trial customers' but still zero monetization after weeks in market
  • Contact Center finally disclosed as 'triple-digit million ARR business growing in high double-digits' - the sleeper story
  • Enterprise guidance cut despite record metrics across the board - deal elongation hitting larger US customers

What changed this quarter

MetricQ4'25Q1'26Change
Total Revenue$1.184B (+3% YoY)$1.175B (+3% YoY)Beat by $8M vs guidance high end
Enterprise Revenue Growth~6% YoY (60% of revenue)~6% YoY (60% of revenue)Stable but guidance cut for remainder of year
Online Churn2.8% (Q4 record low)2.8% (Q1 record low, -40bps YoY)Maintained record performance
Enterprise NRR98% (flat QoQ)98% (held steady QoQ)Stable at sub-100% for 4th quarter
$100K+ ARR Customers7% YoY growth in Q48% YoY growth, 32% of revenue+1 point revenue mix improvement
AI Companion MAU68% QoQ growthNearly 40% QoQ growthSignificant deceleration in adoption
Contact Center Customers89% YoY growth (Workvivo)65% YoY growthFirst quantified Contact Center metric
Workvivo Customers89% YoY growth106% YoY growthAccelerated from 79% in Q3 to 106%
Zoom Phone GrowthStrong traction mentionedMid-teens growth disclosedFirst specific growth rate given
Free Cash Flow$416M (35.2% margin)$463M (39.4% margin)+410bps margin expansion

Accountability tracked

8 new promises made5 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full ZM Q1'26 report Subscribe
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.