Enterprise growth accelerates as new AI products gain traction
- Enterprise revenue grew 7.8%, its strongest rate in three years, and now makes up 62.0% of total sales.
- The Enterprise net dollar expansion rate held steady at 99%, showing stabilization in existing customer spending.
- Direct AI monetization is working, with paid AI features appearing in nine of the top ten Zoom contact center deals.
- Microsoft Teams and Google Meet remain the hardest problem because many companies already pay for those suites.
- The SEC matter is closed, but the DOJ investigation is still open and keeps a legal overhang on the stock.
A platform bet starts showing proof
Zoom is trying to turn a famous video meeting app into a wider work platform. The bull case is simple: Zoom already has a known brand, an easy product, and a huge base of users. If paid customers adopt Zoom Phone, Contact Center, and new AI tools, Zoom can sell more to the same companies.
The latest quarter gave bulls a stronger signal. Enterprise revenue grew 7.8%, its best rate in three years, driven by product diversification and AI monetization. The Enterprise net dollar expansion rate held steady at 99%. This metric compares how much the same Enterprise customer group spends now versus before. It is still below 100%, meaning the base is shrinking slightly, but the bleeding has stopped and new sales are accelerating.
The bear case has not gone away. Meetings face bundled rivals from Microsoft and Google. If a company already pays for Microsoft 365 or Google Workspace, Teams or Meet can look cheap enough, even if some users prefer Zoom.
Finn's view is balanced. Zoom has a highly profitable financial profile, and newer products like Zoom Contact Center and ZoomMate are becoming clear growth engines. However, the valuation score remains modest until the company proves it can push net dollar expansion back above 100%.
Free users feed paid seats and AI add-ons
Zoom makes money by selling subscriptions for its communications platform. The free plan brings people in, then Zoom tries to convert users or whole teams to paid plans with more capacity, controls, and features.
The sales motion has two lanes. Large organizations usually come through direct sales, resellers, or strategic partners. Smaller companies and individuals often buy online through self-service.
Enterprise customers made up 62.0% of revenue in the second quarter of fiscal 2027, while Online customers made up 38.0%. Enterprise is the more strategic base, and its growth recently accelerated to 7.8%.
AI is shifting from a free retention tool to a direct revenue driver. While basic AI Companion is included for free, Zoom now charges for advanced tools like Zoom Virtual Agent and ZoomMate. The company is even introducing outcome-based and consumption-based pricing models for these new features.
Meetings is the base, AI is the hook
Zoom Meetings
This is the original product most people know. It still anchors the brand, but it faces the most direct pressure from Microsoft Teams and Google Meet.
Zoom Workplace
Workplace bundles meetings, phone, chat, mail, calendar, docs, whiteboard, and clips. The goal is to make Zoom a daily work hub, not only a meeting link.
Zoom AI Companion and ZoomMate
AI Companion is a free generative AI assistant. ZoomMate is a newer, paid productivity tool with agentic search and workflows.
Zoom Phone
Zoom Phone is the cloud phone system that helps Zoom sell beyond video meetings. Strong adoption here supports the platform story.
Zoom Business Services
This includes Contact Center and the recently acquired Common Room. It targets customer support and sales teams with intelligence tools.
Employee Experience
This includes Workvivo, which recently passed $100 million in annual recurring revenue, and workspace reservation tools.
Developer Platform and App Marketplace
APIs, SDKs, and third-party apps help customers connect Zoom to other software. This can raise switching costs if companies build workflows around Zoom.
Enterprise accelerates to carry more sales
Segment shares are from the second quarter of fiscal 2027. Zoom disclosed that Enterprise customers accounted for 62.0% of total revenue.
What could break the thesis
Bundled rivals cap growth
High impact · High oddsMicrosoft Teams and Google Meet are often bundled into software suites companies already buy. That makes Zoom's core Meetings product easier to replace or negotiate down. If Zoom cannot prove its broader platform is worth a separate bill, growth can stay slow.
Enterprise customers spend less
High impact · Medium oddsZoom's land and expand model depends on customers buying more over time. The Enterprise net dollar expansion rate held steady at 99%, but it still shows slight net contraction. A slip back toward 98% would suggest the recent stabilization was weak.
Online churn rises
Medium impact · Medium oddsOnline customers are smaller self-service buyers, and they made up 38.0% of revenue in the latest quarter. If average churn rises in this group, the free-to-paid funnel may lose value.
China and DOJ overhang
Medium impact · Medium oddsZoom has a significant research and development presence in China. That can worry security-sensitive customers and regulators. The SEC investigation has ended with no enforcement action recommended, but the DOJ investigations remain ongoing.
Security trust shock
High impact · Low oddsZoom carries sensitive business, school, health, and government conversations. A major breach or privacy failure could hurt the brand and push customers to bundled alternatives. Past scrutiny makes new incidents more costly to explain.
Third-party infrastructure outage
Medium impact · Low oddsZoom relies on co-located data centers and cloud services, including AWS and Oracle Cloud. If those services fail, Zoom's own service quality can suffer. For a communications product, downtime can quickly damage trust.
In one breath
Is Zoom still growing?
Zoom is growing more slowly than during the pandemic boom, but its Enterprise segment recently accelerated to 7.8% growth.
What does Enterprise net dollar expansion mean for Zoom?
It measures whether the same Enterprise customer base is spending more or less after upgrades, downgrades, and churn. Zoom's 99% rate means that base is still shrinking slightly, though less than before.
Why is Microsoft Teams such a big threat to Zoom?
Many companies already pay for Microsoft 365, so Teams can feel like a low-cost add-on. Zoom must show that its ease of use, AI tools, phone, and contact center products are worth paying for separately.
What would make the Zoom thesis more positive?
The clearest sign would be Enterprise net dollar expansion moving back to 100% or higher. More detail showing strong adoption of Zoom Phone, Contact Center, and paid AI products also helps.
Sources and research notes
This page combines Finn's company research with public filings and other cited materials. The thesis is reviewed when material company information changes; Finn Scores use the latest available scoring data.
- Thesis reviewed
- August 30, 2026
- Score data
- September 27, 2026
- Reviewed by
- Shivam Bharuka
Comparable Software - Application companies
Companies near Zoom Communications, Inc. in Finn's Software - Application industry ranking.
