How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Zoom makes money by selling subscriptions to its meetings, phone, chat and contact-centre software, billed monthly, annually or over several years. In fiscal 2026 (year to 31 January 2026) revenue was $4,868.8 million, of which $2,934.1 million came from Enterprise customers served by its sales team and partners and $1,934.7 million from Online customers who sign up on its website.
Sources: Zoom Communications, Inc. (NASDAQ: ZM) Form 10-K for fiscal 2026 (filed 2026-02-27). Analysis by The Business Engineer.
What drives Zoom’s revenue
Almost all of Zoom’s revenue is subscription fees. The company says its subscription revenue is primarily driven by the number of paid licences within a customer and the purchase of additional products, such as Zoom Phone, Zoom Contact Center and Workvivo. Professional services are less than 1% of revenue.
Zoom splits customers into two groups. Enterprise customers, engaged by its direct sales team, resellers or strategic partners, provided $2,934.1 million in fiscal 2026, or 60.3% of revenue. Online customers, from individuals to small businesses who subscribe through the website, provided $1,934.7 million, or 39.7%. The 4,468 customers that each contributed more than $100,000 over the trailing 12 months accounted for 32.8% of revenue.
How Zoom compares
Against its own history, growth is slow. Revenue rose from $4,099.9 million in fiscal 2022 to $4,868.8 million in fiscal 2026. Growth was 4.4% in fiscal 2026, up from 3.1% in fiscal 2025.
The two customer groups are diverging. Enterprise revenue grew 6.5% in fiscal 2026; Online revenue grew 1.2%. By region, the Americas supplied $3,508.1 million (72.1%), EMEA $769.9 million (15.8%) and APAC $590.7 million (12.1%).
What changed in fiscal 2026
Profitability improved. Gross margin rose to 77.0% from 75.8%, and income from operations reached $1,123.6 million, 23.1% of revenue, against $813.3 million (17.4%) a year earlier, as stock-based compensation and administrative costs fell.
Net income nearly doubled to $1,900.1 million from $1,010.2 million, but much of the jump came from $969.8 million of gains on strategic investments, which Zoom says were primarily driven by changes in the fair value of privately held securities. Zoom also repurchased $1.6 billion of shares, launched AI Companion 3.0 at no additional cost for paid Zoom Workplace users, and stopped reporting its Enterprise customer count.
What to watch
Expansion within existing Enterprise customers. The trailing 12-month net dollar expansion rate was 98% at 31 January 2026, the same as a year earlier and below 101% two years earlier. Zoom attributes the drop below 100% to slower hiring and seat-count downsells.
Online retention and competition. Online churn averaged 2.8% a month in fiscal 2026, and 2.9% in the fourth quarter. Zoom lists Microsoft 365 (with Teams) and Google Workspace (with Meet) among competitors that bundle communications with productivity suites. Zoom guides fiscal 2027 revenue of $5.065 billion to $5.075 billion.
Frequently asked questions
How does Zoom make money?
From subscriptions to Zoom Workplace (meetings, phone, chat, docs) and Zoom Business Services such as Contact Center. Revenue was $4,868.8 million in fiscal 2026 (year to 31 January 2026).
How much of Zoom's revenue comes from businesses versus self-serve users?
In fiscal 2026 Enterprise customers, served by sales teams and partners, provided $2,934.1 million (60.3%); Online customers who sign up on the website provided $1,934.7 million (39.7%).
Is Zoom profitable?
Yes. Income from operations was $1,123.6 million in fiscal 2026, a 23.1% margin. Net income was $1,900.1 million, lifted by $969.8 million of gains on strategic investments.
Are Zoom's customers spending more?
Large accounts are. Customers contributing more than $100,000 rose to 4,468 at 31 January 2026 from 4,088. But the Enterprise net dollar expansion rate was 98%, meaning existing Enterprise customers spent slightly less in aggregate, on Zoom’s measure.
For a deeper analysis of how AI is restructuring business models across industries, read From SaaS to AgaaS on The Business Engineer.
