Zoom Communications Inc (NASDAQ:ZM) stock fell 1.62% (As on May 22, 11:21:00 AM UTC-4, Source: Google Finance) after the company reported earnings and revenue beats in its fiscal year 2026 first quarter. Zoom ended the quarter with 4,192 customers contributing more than $100,000 in trailing-12-month revenue, up 8% year-over-year and the company reported a trailing-12-month net dollar expansion rate for enterprise customers of 98%. Net cash flow in the quarter came in at $489.3 million, down from $588.2 million in the first quarter of the previous fiscal year and Zoom ended the quarter with $7.8 billion in cash, cash equivalents and marketable securities on hand. Non-GAAP income from operations, which adjusts for stock-based compensation expense and related payroll taxes, and acquisition-related expenses, was $467.3 million for the first quarter, compared to non-GAAP income from operations of $456.6 million in the first quarter of fiscal year 2025. For the first quarter, non-GAAP operating margin was 39.8%.

Moreover, business highlights in the quarter included a major expansion of Zoom’s AI Companion, which added more than 45 new features across its platform. The new features included automated shift summaries, meeting clip generation and deeper functionality via the new offering called Zoom AI Studio, which allows organizations to build custom AI agents tailored to specific workflows. The quarter also saw the launch of Zoom Workplace for Frontline, a mobile-first solution aimed at supporting the global frontline workforce across industries like healthcare, retail and manufacturing.

ZM in the first quarter of FY26 has reported the adjusted earnings per share of $1.43, beating the analysts’ estimates for the adjusted earnings per share of $1.31. The company had reported the adjusted revenue growth of 3 percent to $1.175 billion in the first quarter of FY26, beating the analysts’ estimates for revenue of $1.166 billion. Enterprise revenue was $704.7 million, up 5.9% year over year, and Online revenue was $470.0 million, down 1.2% year over year. Non-GAAP net income for the first quarter was $448.3 million compared to non-GAAP net income was $426.3 million in the first quarter of fiscal year 2025.

For its fiscal 2026 second quarter, Zoom expects adjusted earnings per share of $1.36 to $1.37 on revenue of $1.195 billion to $1.2 billion. The revenue outlook was ahead of the $1.193 billion expected by analysts. For its full fiscal year, Zoom expects adjusted earnings of $5.56 to $5.59 per share on revenue of $4.8 billion to $4.81 billion.