Zoom beats Q4 revenue estimates but misses full-year EPS, shares drop 12%.

Zoom reported Q4 FY2026 revenue of $1.247 billion, beating estimates by 0.6%, with enterprise customers growing 9.3%. However, full-year non-GAAP EPS of $5.92 missed expectations, causing shares to fall about 12%. Despite strong Q4 EPS boosted by investment gains, free cash flow declined 19%, and customer spending slowed. Zoom’s $7.8 billion cash reserve and stake in AI firm Anthropic support a bullish outlook, but slowing revenue growth and competition from Microsoft Teams pose risks.