Zoom Communications has reported revenue of $1.23 billion, up 4.4 percent year-on-year, during Q3 FY 2026.
Zoom has generated sales of $887 million from Americas, $193 million from Europe-Middle-East-Africa region, and $150 million from Asia Pacific.
Enterprise revenue of $741 million drove the business, representing 60 percent of total sales as against 59 percent. Online revenue trends improved with average monthly churn dropping to a new low of around 2.7 percent, indicating better customer retention in the self-serve segment.
Total remaining performance obligations (RPO) rose to roughly $4.02 billion, up about 8 percent year-on-year, while current RPO, representing business expected to convert in the next 12 months, also grew in the mid-single digits.
Deferred revenue stood near $1.44 billion, and unbilled receivables remained stable, underscoring healthy contracting activity with larger enterprise accounts.
Zoom continued to grow its upmarket footprint, with customers contributing at least $100,000 in trailing 12-month revenue increasing to about 4,363, up 9 percent from the prior year.
AI
AI remained central to Zoom’s product and go-to-market strategies in Q3. The company highlighted Zoom AI Companion 3.0, which is aimed at turning conversations into actions and is seeing strong uptake with millions of monthly active users and rapid growth.
Zoom also reported high double-digit ARR growth in its AI-first customer experience portfolio, including contact center and virtual agent offerings. Zoom announced an agreement to acquire BrightHire to add AI-enhanced hiring capabilities to the platform. These product moves are designed to deepen Zoom’s role as a broader collaboration and customer experience platform rather than a pure video conferencing provider.
Zoom has partnered with Nvidia to include the chipmaker’s Nemotron open technologies to support AI Companion 3.0 across industries such as finance, healthcare and government.
Zoom Communications has emerged as a leading AI-first work platform, integrating advanced artificial intelligence capabilities across its suite of products to enhance productivity, collaboration, and customer engagement. The company’s AI initiatives are increasingly central to its growth and enterprise adoption.
AI Innovations
AI Companion 3.0: Zoom’s next-generation AI agent transforms collaboration by proactively preparing meetings, managing follow-ups, and advancing workflows. Utilizing a federated AI architecture, it allows users to leverage Zoom’s AI models alongside their own or trusted third-party models. Adoption of AI Companion has surged more than four times year-over-year, reflecting strong demand for intelligent work solutions.
Custom AI Companion: Designed for enterprise workflows, this tool has attracted several Fortune 200 companies, including Oracle and Salesforce. It converts routine communication into actionable insights, driving productivity and strengthening strategic partnerships. The acquisition of BrightHire, an AI-powered hiring intelligence platform, extends Zoom’s AI influence into talent management and recruitment workflows.
AI-Driven Customer Experience
Zoom Virtual Agent 2.0 & AI Expert Assist: These solutions enhance customer engagement, enabling faster, personalized responses and more efficient operations. Zoom’s AI-first approach is a major differentiator in its Customer Experience (CX) offerings, with nine of the top ten CX deals involving paid AI features. Clients such as SolarWinds, LegalShield, and Bromcom have leveraged Zoom AI to unify communications and replace fragmented legacy systems.
Industry Recognition: Just three years after launching Zoom Contact Center, the company was included in the 2025 Gartner Magic Quadrant for Contact Center as a Service, highlighting the effectiveness of its AI-led CX innovation.
Platform-Wide AI Integration
Smart Summaries & Task Automation: AI Companion spans Meetings, Phone, Team Chat, Whiteboard, and soon the web. Features like context-aware summaries, intelligent composition tools, and simplified search help streamline workflows, reduce app switching, and accelerate work completion.
Business Impact
User Growth: Zoom’s AI-powered tools are driving measurable business outcomes. Team Chat monthly active users grew 20 percent year-over-year, and Zoom Phone exceeded 10 million paid seats, reinforcing Zoom’s leadership in unified communications and enterprise integration.
By embedding AI across its platform, Zoom is positioning itself at the forefront of the intelligent workplace transformation — delivering seamless collaboration, enhanced customer experiences, and sustainable enterprise growth.
For Q4 FY26, Zoom raised its outlook, guiding revenue to $1.23 billion to $1.235 billion. Zoom’s fiscal 2026 revenue is expected between about $4.852 billion and $4.857 billion as Zoom has intensified its push to embed AI functionalities across its products and broaden its service offerings to capitalize on the demand for hybrid work solutions.
“We’re also seeing strong momentum with Custom AI Companion and our AI-first Customer Experience suite, which helped make this one of our best CX quarters, with broad AI adoption across major deals,” CEO Eric Yuan said.
Rajani Baburajan
