Synthèse
The profitability here is almost hard to believe for a company still growing. Non-GAAP operating margin was 41.1%. Free cash flow was $500.5M in a single quarter, a 40.4% FCF margin. Zoom is sitting on $7.7B in cash and marketable securities. And they’re returning it. The board added another $1.0B to the buyback authorization on top of the $625M already remaining, after retiring roughly 20.4 million shares over FY26. Run the Rule of 40 math: ~5.5% growth plus ~40% FCF margin lands you around 46,
The profitability here is almost hard to believe for a company still growing. Non-GAAP operating margin was 41. 1%. Free cash flow was $500. 5M in a single quarter, a 40.
4% FCF margin. Zoom is sitting on $7. 7B in cash and marketable securities. And they’re returning it. The board added another $1.
0B to the buyback authorization on top of the $625M already remaining, after retiring roughly 20. 4 million shares over FY26. Run the Rule of 40 math: ~5. 5% growth plus ~40% FCF margin lands you around 46, with the profit side doing almost all the lifting. The takeaway: at maturity, the game shifts from growth to durable profit and capital return.
Zoom is a Rule-of-46 company where the “40” carries it. That’s not a failure state. For a company its size, it’s a valuable end state, and one a lot of today’s high-burn AI companies will need to grow into eventually.