Zoom Video Communications, Inc. (ZM): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Zoom Video Communications, Inc. (ZM) through the BCG Matrix lens, and honestly, the picture is a classic post-hyper-growth transition. The core business is a cash machine, but the future hinges on those new, high-growth products. Here's the quick math on where their portfolio sits as of late 2025: the dominant Meetings platform is printing cash with $1,945.3$ million in operating cash flow, but the Online segment is nearly flat at just 0.2% growth. Meanwhile, Zoom Contact Center is a clear Star, seeing customers over $100k$ in ARR rising 94% YoY, while new bets like Workvivo and Team Collaboration are high-risk Question Marks needing serious investment to catch up to deeply entrenched rivals. Dive in below to see which products are fueling the engine and which need a strategic pivot.

Background of Zoom Video Communications, Inc. (ZM)

You're looking at Zoom Video Communications, Inc. (ZM) as it solidifies its position in late 2025, moving well past its initial pandemic-era boom. Honestly, the company has been working hard to transform itself from just a meetings app into what CEO Eric Yuan calls an AI-first work platform for human connection. This shift is key to understanding where its products stand today.

Let's look at the numbers from the last full fiscal year, FY2025, which ended January 31, 2025. Zoom reported total revenue of $4,665.4 million, which was a 3.1% increase year-over-year. The Enterprise segment was definitely carrying the load, bringing in $2,754.2 million, marking a 5.2% increase. The Online segment, though, was nearly flat, only growing 0.2% to $1,911.2 million for the full year.

For a more current snapshot, check out the third quarter of fiscal year 2026, which closed on October 31, 2025. Total revenue hit $1,229.8 million, a healthy 4.4% jump from the prior year's third quarter. The Enterprise revenue growth accelerated to 6.1% year-over-year, reaching $741.4 million, while the Online segment saw a modest 2.0% increase to $488.4 million. This shows you where the focus on high-value business customers is paying off.

The expansion strategy is clear: push new, higher-value products. For instance, the Zoom Contact Center customer base surpassed 1,250, showing an 82% year-over-year growth in that area, and Workvivo also saw strong adoption with 72% customer growth year-over-year. Plus, the AI push is real; in Q4 of FY25, the number of Monthly Active Users utilizing the AI Companion feature increased by 68% quarter-over-quarter.

Financially, the company looks tight. Operating cash flow for Q3 FY2026 was $629 million, a 30% increase year-over-year, which is defintely a sign of strong operational discipline. In the core video conferencing market, recent data suggests Zoom holds about a 28% market share, putting it ahead of competitors like Microsoft Teams at 23%. The base of high-value clients-those spending over $100,000 annually-grew by 9.2% year-over-year in Q3 FY2026, reaching 4,363 customers.

Zoom Video Communications, Inc. (ZM) - BCG Matrix: Stars

You're looking at the engine room of growth for Zoom Video Communications, Inc. (ZM) right now, the Stars quadrant. These are the products with the market leadership and the high growth rates that demand heavy investment to maintain their lead. They are the future Cash Cows, but they burn cash today to keep winning.

Zoom Contact Center (ZCC) is definitely a Star, showing serious traction against established players. The momentum here is clear; for instance, the number of customers contributing over $100,000 in Annual Recurring Revenue (ARR) reached 229 in Q2 2025, representing a 94% year-over-year (YoY) rise.

To be fair, some reports suggest even stronger growth for this cohort, citing that customers paying over $100,000 in ARR grew by over 100% year-over-year in Q4 Fiscal Year 2025. ZCC also landed its largest ARR deal in history during Q4 Fiscal Year 2025, supporting over 15,000 agents. This product is gaining serious market validation, evidenced by its recognition as a Leader in the IDC MarketScape for European Contact Center-as-a-Service (CCaaS) 2025 Vendor Assessment. That's significant for a product that is still relatively new to the space.

Zoom Phone continues its strong trajectory within the high-growth Unified Communications as a Service (UCaaS) market. This platform has expanded its footprint significantly, hitting 10 million seats as of October 2025. This momentum is validated by its consistent placement as a Leader in the 2025 Gartner Magic Quadrant for UCaaS, marking its sixth consecutive inclusion. Zoom is one of only two providers recognized as a Leader in both the UCaaS and CCaaS Magic Quadrants for 2025, showing platform completeness.

The integration of artificial intelligence is a key driver for these Stars. Zoom AI Companion adoption surged more than four times year-over-year, according to CEO Eric Yuan in Q3 2025 earnings commentary. This rapid adoption helps differentiate the platform and drives stickiness across the entire Zoom Workplace suite. For example, testing showed its meeting summaries achieved 80-85% accuracy, making the feature genuinely useful for heavy meeting users.

Here's a quick look at the key growth and market validation numbers for these leading products:

The overall company performance reflects this growth investment. For the third quarter ended October 31, 2025, total revenue was $1.23 billion, with the Annual Recurring Revenue (ARR) hitting $4.92 billion. The operating margin for that quarter stood at 25.2%, showing the investment required to fuel these high-growth Stars.

The market leadership for these core growth vectors is summarized by these industry acknowledgments:

• Leader in the IDC MarketScape for European CCaaS 2025.
• Leader in the 2025 Gartner Magic Quadrant for UCaaS (sixth consecutive year).
• One of only two companies in both 2025 Gartner Magic Quadrants for UCaaS and CCaaS.
• Recognition as Customers' Choice in the 2025 Gartner Peer Insights for UCaaS.

Finance: draft 2026 capital expenditure plan prioritizing ZCC and AI infrastructure by Friday.

Zoom Video Communications, Inc. (ZM) - BCG Matrix: Cash Cows

You're looking at the core engine of Zoom Video Communications, Inc. (ZM), the segment that prints money to fund the next big thing. These are the established products dominating a mature space, and for Zoom, that's the core meeting platform.

The foundation of this Cash Cow status is market dominance. Zoom Meetings holds a dominant market share of over 55.91% in the video conferencing space. This level of market leadership in a now-mature market is what allows the company to generate significant, reliable cash flow without needing massive, growth-stage marketing spend.

The financial proof of this cash-generating machine is clear in the latest full-year figures. The company generated massive operating cash flow of $1,945.3 million for the full fiscal year 2025, up 21.7% Year-over-Year (YoY). That's real cash being pulled from the core business.

The Enterprise segment is the primary revenue engine, contributing $2,754.2 million in FY2025, growing at a modest 5.2%. This segment represents the high-share, lower-growth environment typical of a Cash Cow, where expansion is steady, not explosive. You want to maintain this base, not try to reinvent it.

Profitability from this core platform remains exceptional, showing the high margins this segment commands. High non-GAAP operating margin of 41.2% in Q3 CY2025 shows exceptional profitability from the mature core platform. This high margin means that for every dollar of revenue, a significant portion drops to the operating income line, which is exactly what you want from a Cash Cow.

Here's a quick look at the key metrics defining this quadrant:

• Market Share in Video Conferencing: 55.91%.
• FY2025 Operating Cash Flow: $1,945.3 million.
• Enterprise Revenue Contribution (FY2025): $2,754.2 million.
• Non-GAAP Operating Margin (Q3 CY2025): 41.2%.

The strategy here is to 'milk' these gains passively while investing just enough to maintain efficiency and security. Investments should focus on infrastructure that lowers the cost to serve, like AI-driven support or automation, rather than expensive feature overhauls.

You need this cash to fund the Question Marks, so keeping the core platform stable and highly profitable is defintely the priority. Finance: draft 13-week cash view by Friday.

Zoom Video Communications, Inc. (ZM) - BCG Matrix: Dogs

You're looking at the segment of Zoom Video Communications, Inc. (ZM) that is clearly lagging, the one that demands careful scrutiny regarding resource allocation. The Online/Small Business segment fits the profile of a Dog: low market share in a mature, highly competitive space, resulting in minimal growth.

This segment is struggling with market saturation and intense price competition from rivals who bundle services. For the full fiscal year 2025, Online revenue growth was nearly flat at just 0.2%, reaching $1,911.2 million for the year. To be fair, the most recent quarter, Q4 of fiscal year 2025, showed even more pressure, with Online revenue declining 0.4% year-over-year to $477.3 million. This unit requires minimal new investment but provides very low, near-zero growth returns, which is the classic trap of a Dog.

Even the higher-tier Enterprise business shows signs of market maturity, though it is not a Dog. The trailing 12-month net dollar expansion rate for Enterprise customers in Q3 of fiscal year 2026 was 98%. Honestly, that 98% figure means that churn is exactly offsetting expansion within the existing high-value customer base, indicating that even the 'Cash Cow' is not seeing robust organic expansion right now. Still, the Online segment's performance is far more indicative of a Dog.

Here's a quick look at how the two main revenue streams performed in the full fiscal year 2025 to put the Online segment's stagnation in context:

The strategic implication here is clear: Dogs should be avoided and minimized. Expensive turn-around plans usually don't help when the market itself is low-growth. You want to keep cash tied up in this unit to an absolute minimum.

Key metrics related to the Online segment's low-return profile include:

• Full Fiscal Year 2025 Online Revenue Growth: 0.2%.
• Fourth Quarter Fiscal Year 2025 Online Revenue: $477.3 million.
• Fourth Quarter Fiscal Year 2025 Online Revenue Change: -0.4%.
• Online Average Monthly Churn (Q3 FY26): 2.7%.

The fact that the Online segment is showing negative growth in the latest reported quarter suggests that divestiture or severe cost-cutting is the most logical path, as these units are prime candidates for being shed to free up capital.

Finance: draft a zero-based budget proposal for the Online segment by next Tuesday.

Zoom Video Communications, Inc. (ZM) - BCG Matrix: Question Marks

You're looking at the new bets Zoom Video Communications, Inc. is placing in markets that are expanding quickly, but where the company hasn't yet secured a dominant position. These are the cash consumers, the high-potential ventures that need capital to break through the noise.

Workvivo, the employee experience platform, fits this mold perfectly. It operates in the growing employee engagement space, aiming to become the digital hub for internal communications. While adoption is accelerating, it's still building its footprint against established players. In the second quarter of fiscal year 2026, the number of Workvivo customers contributing more than $100,000 in Annual Recurring Revenue rose 142% year over year to 168 logo accounts. Overall, the customer base reached 1,225 in the third quarter of fiscal year 2026. This rapid growth in high-value accounts shows the potential, but the total revenue contribution is still small relative to the core business.

New AI-powered agentic capabilities, such as the recently introduced Virtual Agent 2.0 in June 2025, are classic Question Marks. They require heavy Research and Development investment to compete with rivals who have deeper AI foundations. The market for generative AI in the workplace is high-growth, but Zoom's share of that specific segment is nascent. The company is seeing strong uptake, however; for instance, the number of Monthly Active Users for the core AI Companion increased 68% quarter-over-quarter in the fourth quarter of fiscal year 2025. Furthermore, in the customer experience suite, nine of the top ten deals involved paid AI features in the third quarter of fiscal year 2026.

Zoom Team Collaboration, the integrated product suite, is fighting for share in the most crowded software segment. While Zoom's core video conferencing market share is estimated to be between 40-55% globally, the broader collaboration suite faces deeply entrenched competitors. Microsoft Teams holds a global market share of about 32.29% in videoconferencing and is bundled with Microsoft 365, giving it massive distribution advantage. For the full fiscal year 2025, Zoom's total revenue was $4,665.4 million with a year-over-year growth rate of 3.1%. This modest overall growth suggests the integrated suite hasn't yet achieved the scale to be a Star, consuming cash for development while trying to win share.

These three areas represent high-risk, high-reward bets. They must capture market share quickly to transition into Stars, or they risk becoming Dogs if growth stalls.

Here is a snapshot of the current metrics for these growth initiatives as of late 2025:

You need to watch the investment spend on these areas closely against their market penetration rates. Finance: draft 13-week cash view by Friday.