Zoom Shares Slide 13% After Q4 EPS Miss and Below-Consensus FY27 Guidance
Zoom reported fourth-quarter revenue of $1.25 billion, a 5.3% year-over-year increase that beat estimates, but adjusted EPS of $1.44 fell short of forecasts. The company guided fiscal 2027 non-GAAP EPS of $5.77–$5.81, below consensus, driving a roughly 13% share drop on February 26.
1. Q4 Earnings Results
Zoom delivered fourth-quarter revenue of $1.25 billion, up 5.3% year over year, exceeding analyst projections, while adjusted earnings per share of $1.44 missed consensus estimates by about 2.7%. Non-GAAP operating income rose 4.6% to $489.7 million, but the EPS shortfall weighed on investor sentiment.
2. Segment and Customer Performance
Enterprise revenue, which accounts for 60.7% of total sales, climbed 7.1% to $757.3 million, and online services revenue grew 2.6% to $489.7 million. Customers generating over $100,000 in trailing-12-month revenue increased 9.3% to 4,468, while gross margin expanded 100 basis points to 79.8%.
3. Guidance and Market Reaction
First-quarter revenue is forecast at $1.220–$1.225 billion, with full fiscal 2027 revenue guidance of $5.065–$5.075 billion and non-GAAP EPS of $5.77–$5.81, below Wall Street consensus. Shares plunged roughly 13.3% in afternoon trading on February 26, trading about 22% below their 52-week high.