How does Zoom Communications (ZM) make money?

Zoom Communications (ZM) generates revenue primarily from Reportable Segment, which accounted for 100% of total revenue in TTM through Q2 2026. The company reported $4.93B in revenue and converted 42% of it into net profit, equivalent to roughly $2.07B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Zoom Communications (ZM)?

Zoom Communications (ZM) reported a gross profit margin of 77.4% in TTM through Q2 2026, equivalent to $3.82B in gross profit on $4.93B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Zoom Communications (ZM)?

Zoom Communications (ZM) reported an operating profit margin of 24.2% in TTM through Q2 2026, equivalent to $1.19B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Zoom Communications (ZM)?

Zoom Communications (ZM) reported a net profit margin of 42% in TTM through Q2 2026, equivalent to $2.07B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Zoom Communications (ZM) profitable?

Yes. Zoom Communications (ZM) reported $2.07B in net income for TTM through Q2 2026, with a net profit margin of 42%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Zoom Communications (ZM) invest in research and development?

Zoom Communications (ZM) invested $867M in research and development during TTM through Q2 2026, roughly 17.6% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Zoom Communications (ZM) spend on capital expenditures?

Zoom Communications (ZM) spent $60.7M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 1.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Zoom Communications (ZM) generate?

Zoom Communications (ZM) generated $1.96B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 39.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Zoom Communications (ZM)?

Zoom Communications (ZM) had an effective tax rate of 21.5% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

How Zoom Communications Makes Money: 2026 Visual Revenue Map

Zoom Communications (ZM) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending April 30, 2026 (reported May 22, 2026).

Zoom Communications discloses geographic revenue only in annual filings. to view the full breakdown.

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Zoom Communications (ZM) Key Financials

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Overview

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Counters

Revenue Counter$156.43/s
Earnings Counter$65.68/s
Economic Scale> Eswatini

Income Statement

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Capital Return

Buybacks5.47% TTM

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Forecast & Valuation

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Estimates$1.48 EPS
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Daily Price Character49.1% win rate