rewrite this title Zoom Reports $1.24bn Q1 Revenue as AI Companion Users Surge 184% – UC Today

Zoom has spent the last couple of years trying to convince enterprise buyers that it is more than a meetings tool. On 21 May, when CEO Eric Yuan presented the company’s first quarter fiscal year 2027 results to investors, the numbers gave him a reasonable case to make. Revenue came in at $1.239 billion, up 5.5% year over year and $14 million above the top of Zoom’s own guidance. Enterprise revenue grew faster than the overall business, at 7.2%. Paid users of AI Companion, Zoom’s embedded AI product, grew 184% year over year. And the Contact Center business, which Zoom is positioning as the other half of a UCaaS-CCaaS consolidation pitch, posted high double-digit revenue growth.

None of that resolves the broader question of whether Zoom can sustain meaningful growth against Microsoft Teams and a crowded CCaaS market. But the Q1 figures are a reasonable starting point for the argument Yuan is making: that customers are buying more of the platform, not just renewing the meeting licence.

Enterprise Customers are Spending More

Enterprise revenue grew 7.2% to $755.7 million, now accounting for 61% of total revenue, up one percentage point year on year. The number of enterprise accounts generating more than $100,000 in trailing 12-month revenue rose 8.2% to 4,534, contributing 33% of total revenue, and net dollar expansion for enterprise improved to 99%.

The wins on the call sketch a consistent picture. A major government contractor returned to Zoom in a seven-figure ARR deal, displacing both Microsoft Teams and Cisco calling to meet government security requirements and to route live communications data into broader AI workflows. Zoom Phone landed Baptist Health in Jacksonville, Florida in another seven-figure deal: 16,000 workers across more than 200 points of care, with healthcare-specific integrations cited as the deciding factor. Yuan told investors 15 of Zoom’s top 20 wins in the quarter included Zoom Workplace or Zoom Phone, which points to customers buying the platform rather than a single product.

AI Companion: From Meeting Summaries to Workflow Automation

Paid monthly active users of AI Companion grew 184% year over year, driven by AI Companion 3.0. The product has moved beyond summarising meetings into what Zoom calls agentic retrieval: pulling context from Zoom and connected third-party systems and completing actions across them. Yuan says the scope of the product has shifted:

“AI Companion 3.0 brings agentic retrieval across Zoom and connected work sources, extending AI Companion beyond meeting summaries into a broader workflow layer that turns conversations into action.”

Two customer examples give that some weight. Raymond James expanded to Custom AI Companion across approximately 10,000 seats after initially adopting it for meeting summaries alone, building out compliance-specific workflows for wealth advisers who needed AI that understood financial services oversight requirements, not just generic productivity features. MongoDB went further: as part of an upgrade to Zoom Workplace Enterprise Plus, it deployed Custom AI Companion alongside Zoom Contact Center and Zoom Virtual Agent to automate actions across IT ticketing, CRM and other third-party systems. Both cases follow the same logic: a customer starts with AI Companion for a narrow use case and expands into agentic workflows that touch more of the business.

My Notes, Zoom’s AI notetaker, passed 1.5 million monthly active users within four months of launch, excluding trial users, making it one of the faster product starts Zoom has seen in recent years.

Phone and Contact Center: The Consolidation Pitch

Zoom Phone ARR grew in the mid-teens. Zoom Customer Experience, covering Contact Center, Virtual Agent and related products, posted high double-digit revenue growth, with paid AI features present in nine of the top ten ZCX deals in the quarter.

The commercial argument Zoom is making to IT buyers is UCaaS-CCaaS consolidation: one platform, one vendor, one contract covering employee communications and customer engagement. Yuan says the business case is simple enough that buyers are reaching the conclusion themselves:

“When they look at it from on-prem to cloud, or from pre-AI solutions to AI solutions, if they can combine those two, consolidate those two systems into one platform, one vendor, why not? This is a great ROI. That’s the reason why quite often you see both UCaaS and CCaaS will bring in together.”

Eight of the top ten Contact Center wins in the quarter displaced legacy CCaaS vendors. For IT leaders currently managing separate UCaaS and CCaaS contracts, the consolidation case is something most procurement teams are running the numbers on, and Zoom is clearly in those conversations.

Financials and Outlook

Non-GAAP operating margin reached 41.1%, up from 39.8% a year earlier, and free cash flow came in at $500.5 million, up 8%. Remaining performance obligation of approximately $4.3 billion grew 11%, with the non-current portion up 19%, reflecting more customers committing to longer-term, multi-product contracts rather than rolling annual deals. Deferred revenue outperformed guidance, landing up 5% against a guided range of 1-2%, driven by the same shift.

The softer number is in the online segment, where average monthly churn ticked up to 3.0% from 2.8% a year earlier. CFO Michelle Chang was measured on the call:

“We said we would stabilise our business in online, and we have done that both in terms of revenue as well as just in the nature of our online business, which is far more stable.”

Stabilised is not the same as growing, and the self-serve business is a smaller part of the story with every quarter that passes.

Zoom raised full-year fiscal 2027 revenue guidance to $5.080 to $5.090 billion and added $1 billion to its share repurchase authorisation on top of $625 million already remaining. Analyst reaction was broadly positive but measured. Needham’s Josh Reilly called out Zoom Phone’s mid-teens growth and AI cross-sell trends as standout positives. BTIG’s Nikolay Verkhovski noted that lower churn in Phone and Contact Center reflected fewer large competitive takeouts in the period, a signal that Zoom is holding accounts rather than winning net-new ones at pace.

The 184% growth in paid AI Companion users is the number Zoom wants IT leaders to take away from this quarter, and there is enough supporting evidence in the Raymond James and MongoDB expansions to suggest the cross-sell motion is working. Whether mid-single-digit revenue growth is the floor or the ceiling as that AI monetisation builds is the question the next two quarters will have to answer.