Omdia view
Summary
Where Zoom was once viewed as a pandemic-era necessity, it is now focused on a broader vision and value proposition: as a digital platform supporting AI-powered enterprise productivity and engagement. The shift has been measured and intentional, and Zoom is starting to reap the benefits, as demonstrated by its 1Q26 results.
Enterprise is the growth engine for Zoom’s strategic expansion
Zoom’s 1Q26 results aren’t just about immediate gains – they underline the vendor’s intention to secure a more strategic and enduring position within the enterprise. Revenue for the quarter reached $1.175bn, reflecting a 2.9% year-on-year (YoY) increase. However, beyond the numbers, the real story lies in how Zoom continues to expand its identity from a videoconferencing tool to a true enterprise technology platform, enabling collaboration and much more. Zoom’s increasing enterprise footprint is visible in performance metrics and customer wins shared in these latest financial results. Enterprise revenue growth of 5.9% YoY now accounts for the majority of Zoom’s income. Zoom’s traditional collaboration and videoconferencing capabilities aside, there are three solution categories that are significantly contributing toward Zoom’s enterprise traction:
- Zoom CX: The 65% expansion in customer base reported by Zoom highlights how this AI-first offering is maturing. The large deployment of over 20,000 seats for Spain’s Agencia Tributaria demonstrates how the solution is not only functionally strong but also maturing in terms of credibility in a lucrative and competitive contact-center-as-a-service (CCaaS) space.
- Revenue Accelerator: Zoom’s AI-powered sales enablement solution has AI at its core. License volume for this solution rose an impressive 72% YoY, with conversation and deal intelligence features that deliver employee coaching with scorecards and AI playbooks, automated deal insights, native CRM integration, and agentic AI capabilities that take action on your behalf. This highlights how Zoom is successfully monetizing AI, demonstrating its growing influence in a space traditionally led by incumbents such as Salesforce.
- Workvivo: Zoom’s acquisition of Workvivo and subsequent foray into the realms of employee engagement and workplace culture is also beginning to pay off. Here, Zoom reports a 106% growth in customer base. Workvivo has had an impressive 12 months, notably in being positioned as a compelling successor to Meta’s discontinued Workplace product. This growth should further strengthen Zoom’s broader workplace platform ambitions and give the vendor a credible foundation upon which to further develop its employee engagement ambitions. In Omdia’s view, the next step here will be in further advancing and broadening its workflow automation capabilities, especially in bringing collaboration closer into the flow of everyday work for both frontline and back-office employees.
The significance of these growth areas lies in its strategic direction that indicates Zoom’s continued success. These solutions, while not built from the same large revenue base as Zoom’s traditional conferencing and collaboration offerings, are foundational to Zoom’s future value proposition and growth prospects.
Zoom has built AI momentum by focusing on practical enterprise pain points
A key strategic pillar in Zoom’s momentum is its AI-first platform. In rolling out its AI capabilities, Zoom has not framed them as an add-on but as a foundational element at the core of Zoom’s platform. For example, Zoom AI Companion capabilities are richly integrated across multiple products, supporting features such as smart meeting summaries, automated task capture, and personalized productivity recommendations. Zoom’s third-party integrations also significantly enhance the value of its AI capabilities, allowing seamless data interaction across various platforms.
Although Zoom does not disclose AI-specific revenue, the impact of AI technology is readily observed in how deeply it is embedded across Zoom’s solutions. The success of solutions such as Revenue Accelerator and improvements across customer service offerings serve as solid evidence of the impact and growing relevance of AI on the Zoom Platform. Additionally, the release of one of Zoom’s newest products, the Custom AI Companion add-on, allows customers to tailor AI skills and agents for their organization and industry. Zoom’s AI strategy is deeply practical, tied closely to solving common workflow and operational challenges that businesses face. This will not only support the “stickiness” of Zoom’s AI capabilities in the enterprise but also strengthen broader platform adoption.
Zoom has earned the attention of enterprises – the next milestone will be in capturing a bigger slice of the $245bn hybrid workplace technology market
Zoom’s financial reports are an encouraging indicator that the vendor is executing against its strategy of becoming a key digital pillar, driving the advancement of collaboration and productivity in modern business. As the vendor looks to further improve its enterprise impact, it must continue to focus on growing customer interest and adoption in broader platform deployments. A key priority will be doubling down on “land and expand” strategies, strengthening integrations with other important digital workplace solutions, and ensuring businesses can effectively measure ROI – particularly in the realm of AI-driven productivity and collaboration.
Zoom needs to continue to build on the promise that products such as Workvivo hold. Further scaling awareness of these solutions and reinforcing their value in line with important business challenges will be vital. Zoom should also continue to invest in creating a unified user experience across its growing suite so that customers see value in the whole ecosystem and not just in its individual parts. Zoom Workplace is just the start here. As vendors such as Microsoft accelerate their Copilot agenda and Salesforce weaves AI throughout its CRM ecosystem, Zoom faces mounting pressure to broaden awareness of its own platform story. The next phase of Zoom’s evolution should not solely be about product growth but on developing its relevance in growing its share of the huge $245bn hybrid workforce technology market.
Appendix
Author
Adam Holtby, Principal Analyst, Workplace Transformation
