Zoom's Workvivo platform drives its business expansion: What awaits us?

September 4, 2025 — 11:19 am EDT Written by Kashvi Chandgothia

Zoom Communications' employee experience platform Workvivo is becoming a crucial catalyst for its business expansion. In the second quarter of fiscal year 2026, Workvivo customers contributing over $100,000 in annual recurring revenue increased by 142% year-over-year to 168, a pace that is likely to continue as its adoption grows among large organizations.

This acquisition seems to extend Zoom's presence beyond collaboration into employee engagement and internal communications. Large-scale implementations, such as Marubeni Corp.'s with over 10,000 licenses, suggest that companies are increasingly considering integrated employee platforms as essential in hybrid work strategies and retention. With employee experience becoming a strategic priority, Workvivo is positioned to capture a larger share of corporate technology budgets.

The integration with Zoom Workplace will likely support cross-selling that increases customer lifetime value, while the expansion into mid-market accounts will open new revenue channels. AI-driven enhancements will provide differentiation and reinforce premium pricing opportunities, strengthening Zoom's position in the competitive employee experience market.

For the third fiscal quarter of 2026, Zacks' consensus estimate for business revenues stands at $730.97 million, a 4.6% increase compared to the same quarter of the previous year. With business revenues as a key growth driver after advancing 7% year-over-year and accounting for 60% of total revenues, the adoption of Workvivo will be crucial to maintaining momentum in Zoom's large account base.

Zoom faces tough competition

Microsoft challenges Zoom with its Viva suite, closely integrated with Teams and Office 365. This grouping strengthens adoption in companies already immersed in the Microsoft ecosystem. Alphabet, through Google Workspace, is also expanding employee collaboration and engagement, leveraging its cloud and AI capabilities. Microsoft's advantage lies in bundled pricing and established business links, while Alphabet's strength comes from AI-driven innovation. For Zoom, the opportunity of Workvivo lies in cross-selling through Workplace and in differentiating itself as companies seek unified platforms outside of the Microsoft and Alphabet ecosystems.

Stock price performance, valuation and estimates

Zoom's shares have risen by 2.3% so far this year, a performance below the industry average of 18.3% according to Zacks and the sector increase of 11.8%.

From a valuation perspective, Zoom's shares currently trade at a 12-month price/sales ratio of 5.15X compared to the industry's 5.62X. Zoom has a D rating.

Zacks' consensus estimate for fiscal third quarter 2026 earnings is $1.42 per share, four cents higher in the last 30 days, indicating a year-over-year improvement of 2.9%.

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