ZM Zoom Video Communications margins

Relative Growth: Rel. Growth: 98

Relative Strength: Rel. Strength: 66

Relative Valuation: Rel. Valuation: 91

Relative Profitability: Rel. Profitability: 98

Gross margin

77.3%

Operating margin

23.7%

EBITDA margin

86.9%

Net margin

65.2%

The Zoom Video Communications shows a gross margin of 77.3%, an operating margin of 23.7%, an EBITDA margin of 86.9%, and a net margin of 65.2%. EBITDA margin drove the improvement across the available margins, increasing by 52.1 percentage points.

ZM margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Zoom Video Communications's margins averaged 76.37% gross, 17.89% operating, 38.05% EBITDA, and 27.13% net. All four current margins are above their three-year averages.

ZM margin expansion

Year-over-year margin changes in percentage points

Year over year, gross, operating, EBITDA, and net margins all increased, with EBITDA margin showing the largest gain at 52.1 percentage points.

Gross margin expansion

0.9pp

Operating margin expansion

3.3pp

EBITDA margin expansion

52.1pp

Net margin expansion

40.2pp

ZM Gross margin

The average gross margin for Zoom Video Communications was 76.37% during the last 3 years. At present, the current gross margin for Zoom Video Communications is 77.3%, 0.9 percentage points above its three-year average. The gross margin for Zoom Video Communications moved between 75.6% in Oct 2023 and 77.4% in Apr 2026.

ZM Operating margin

Over the last 3 years, the average operating margin for Zoom Video Communications was 17.89%. The latest operating margin for Zoom Video Communications is 23.7%, 5.8 percentage points above its three-year average. Zoom Video Communications's operating margin ranged from a low of 5% in Oct 2023 to a high of 24.2% in Apr 2026.

ZM EBITDA margin

Zoom Video Communications recorded an average EBITDA margin of 38.05% across the last 3 years. The current EBITDA margin of 86.9% is 48.9 percentage points above its three-year average. During this period, EBITDA margin reached a high of 86.9% in Jul 2026 and a low of 12.7% in Oct 2023.

ZM Net margin

In the last 3 years, Zoom Video Communications had an average net margin of 27.13%. Against its three-year average, Zoom Video Communications's net margin is currently 65.2%, 38.1 percentage points above its three-year average. Looking back over the last 3 years, Zoom Video Communications's net margin reached 65.2% at its highest point in Jul 2026 and 5.2% at its lowest in Oct 2023.

ZM margin group comparison

Margins compared with peer-group, industry and sector averages

Zoom Video Communications's gross margin of 77.3% is above the Technology sector and the industry average. Compared to its Technology sector average of 52.1%, Zoom Video Communications's gross margin is 48% higher.

ZM margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Zoom Video Communications's gross margin?

For the period ending Jul 31, 2026, ZM recorded a gross margin of 77.3%.

What is Zoom Video Communications's operating margin?

The current operating margin for ZM is 23.7% as of Jul 31, 2026.

What is Zoom Video Communications's EBITDA margin?

For the period ending Jul 31, 2026, ZM recorded an EBITDA margin of 86.9%.

What is Zoom Video Communications's net margin?

The current net margin for ZM is 65.2% as of Jul 31, 2026.

What are the average margins of ZM?

Over the last 3 years, Zoom Video Communications's margins averaged 76.4% gross, 17.9% operating, 38.1% EBITDA, and 27.1% net.

What are the highest historical margins of ZM?

Within the 5-year period, ZM recorded its highest margins at 77.4% gross in Apr 2026, 27.3% operating in Oct 2021, 86.9% EBITDA in Jul 2026, and 65.2% net in Jul 2026.

What are the lowest historical margins of ZM?

Zoom Video Communications's lowest recorded margins during the past 5 years were 72.8% gross in Oct 2021, 1.5% operating in Apr 2023, 6.1% EBITDA in Apr 2023, and 0.1% net in Apr 2023.