Microsoft vs Zoom: Revenue, Profit and Business Model
Microsoft reported $331.8B of revenue in FY2026 and $133.7B of net income. Zoom reported $4.9B of revenue in FY2026 and $1.9B of net income.
Latest financial snapshot
Financial summary
Microsoft
Microsoft's FY2026 revenue rose 17.8% to $331.8 billion, operating income rose 21% to $155.2 billion, and GAAP net income rose 31% to $133.7 billion. Fourth-quarter revenue was $90.0 billion (up 18%) with net income of $35.8 billion, helped by a $3.2 billion gain on its Anthropic investment. Microsoft Cloud revenue reached $59.3 billion in Q4, up 27%. The main pressure point is capital intensity: AI data center spending has pushed free cash flow growth well below earnings growth.
Zoom
Zoom's revenue went from $622.7 million in fiscal 2020 to $4.100 billion in fiscal 2022, then growth slowed to 3.1% in fiscal 2025 and 4.4% in fiscal 2026 ($4.869 billion). GAAP net income was $1.900 billion in fiscal 2026. For the first half of fiscal 2027, GAAP net income was $1.968 billion. Most of that came from $1.767 billion of gains on strategic investments, so it overstates the operating business. Q2 fiscal 2027 GAAP operating income was $314.3 million (24.6% margin), and free cash flow was $472.4 million. Zoom guided fiscal 2027 revenue to $5.085-$5.095 billion and free cash flow to $1.780-$1.820 billion. It is also buying back stock, with about $1.3 billion of authorization remaining at July 31, 2026.
Revenue and profit by year
Microsoft
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $331.8B | $133.7B | 40.3% | +17.8% | Source |
| FY2025 | $281.7B | $101.8B | 36.1% | +14.9% | Source |
| FY2024 | $245.1B | $88.1B | 36.0% | +15.7% | Source |
| FY2023 | $211.9B | $72.4B | 34.1% | +6.9% | Source |
| FY2022 | $198.3B | $72.7B | 36.7% | +18.0% | Source |
| FY2021 | $168.1B | $61.3B | 36.5% | +17.5% | Source |
| FY2020 | $143B | $44.3B | 31.0% | +13.6% | Source |
| FY2019 | $125.8B | $39.2B | 31.2% | +14.0% | Source |
| FY2018 | $110.4B | $16.6B | 15.0% | +14.3% | Source |
| FY2017 | $96.6B | $25.5B | 26.4% | — | Source |
Zoom
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $4.9B | $1.9B | 39.0% | +4.4% | Source |
| FY2025 | $4.7B | $1B | 21.7% | +3.1% | Source |
| FY2024 | $4.5B | $637.5M | 14.1% | +3.1% | Source |
| FY2023 | $4.4B | $103.7M | 2.4% | +7.1% | Source |
| FY2022 | $4.1B | $1.4B | 33.6% | +54.6% | Source |
| FY2021 | $2.7B | $672.3M | 25.4% | +325.8% | Source |
| FY2020 | $622.7M | $25.3M | 4.1% | — | Source |
Where the revenue comes from
Microsoft
- Productivity And Business ProcessesMajor
Office, Microsoft 365, LinkedIn, Dynamics, and related cloud services.
- Intelligent CloudMajor
Azure, server products, enterprise services, and cloud infrastructure.
- More Personal ComputingMajor
Windows, devices, gaming, search, and advertising.
- AI Services And CopilotsGrowth
AI features and model-powered services embedded across Azure, Microsoft 365, GitHub, security, and developer tools.
Zoom
- Enterprise~60%
Customers sold through Zoom's direct sales team, resellers and strategic partners. Fiscal 2026 revenue was $2.934 billion. Q2 fiscal 2027 revenue was $787.5 million, up 7.8%.
- Online~40%
Individuals and smaller businesses that subscribe through Zoom's website. Fiscal 2026 revenue was about $1.935 billion. Q2 fiscal 2027 revenue was $489.7 million, up 0.6%.
Business model and strategy
Microsoft
How it makes money
Microsoft reports three segments. Intelligent Cloud covers Azure, SQL Server, Windows Server, GitHub, Nuance, and enterprise services; server products and cloud services alone brought in $129.4 billion in FY2026, and Azure passed $100 billion in annual revenue for the first time.
Growth strategy
Microsoft's growth plan centers on AI capacity and AI subscriptions. It is spending heavily on data centers and chips to meet Azure demand that management says remains capacity constrained, and it is selling Microsoft 365 Copilot as a paid add-on, which passed 30 million paid seats by the end of FY2026.
Competitive advantage
Microsoft's main advantage is distribution inside enterprises. Identity (Entra), email and documents (Microsoft 365), collaboration (Teams), developer tools (GitHub, Visual Studio), and cloud infrastructure (Azure) are often bought together, which raises switching costs and lets Microsoft attach new products such as Copilot to existing contracts.
Zoom
How it makes money
Zoom sells per-user and per-seat subscriptions. It reports two customer groups. Enterprise covers organizations sold through its direct sales team, resellers and strategic partners; it brought in $2.934 billion in fiscal 2026, about 60% of revenue. Online covers customers who buy through the website, about $1.935 billion in fiscal 2026.
Growth strategy
Management describes Zoom as a 'system of action' for work. In practice that means selling Enterprise customers phone, contact center and AI agents, and buying companies to add adjacent workflows. BrightHire (interview intelligence) was bought in late 2025, and an agreement to buy Common Room (buyer intelligence for sales teams) was announced on July 2, 2026.
Competitive advantage
Widely known meetings brand; large installed base to sell phone and contact center into; high cash generation, with $7.2 billion of cash and marketable securities at July 31, 2026.
Questions about Microsoft vs Zoom
Which company has higher revenue — Microsoft Corporation or Zoom Communications, Inc.?
Microsoft Corporation reported $331.8B (FY2026), while Zoom Communications, Inc. reported $4.9B (FY2026). By last reported revenue, Microsoft Corporation is the larger business, with Zoom Communications, Inc. reporting a smaller revenue base.
What is the market cap of Microsoft Corporation vs Zoom Communications, Inc.?
Microsoft Corporation's market capitalisation stands at $3.83T, while Zoom Communications, Inc.'s is $27.0B. Microsoft Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Zoom Communications, Inc..
Which is more financially efficient — Microsoft Corporation or Zoom Communications, Inc.?
Microsoft Corporation generates $1.49M / employee in revenue per employee, while Zoom Communications, Inc. generates $658k / employee. Microsoft Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Microsoft Corporation and Zoom Communications, Inc. make money?
Microsoft Corporation and Zoom Communications, Inc. generate revenue in fundamentally different ways. Microsoft Corporation: Microsoft reports three segments. Zoom Communications, Inc.: Zoom sells per-user and per-seat subscriptions.
Which company is valued higher relative to revenue — Microsoft Corporation or Zoom Communications, Inc.?
On a price-to-sales (P/S) basis, Microsoft Corporation trades at 11.5x P/S and Zoom Communications, Inc. at 5.5x P/S. Microsoft Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Zoom Communications, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Microsoft Corporation bigger than Zoom Communications, Inc.?
By last reported revenue, Microsoft Corporation ($331.8B (FY2026)) is the larger company compared to Zoom Communications, Inc. ($4.9B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Microsoft vs Zoom overview