Zoom Q2 revenue rises on Enterprise momentum but fails to impress

Zoom Communications

25/08/2026 21:17

Overview
US video communications firm's fiscal Q2 revenue rose 4.9%, slightly beating analyst expectations
Adjusted EPS for fiscal Q2 beat analyst expectations
Company repurchased 3.7 mln shares in Q2, totaling 44.2 mln under current plan

Outlook
Zoom expects Q3 revenue between $1.275 bln and $1.280 bln
Company sees FY27 revenue between $5.085 bln and $5.095 bln
Zoom expects FY27 free cash flow between $1.780 bln and $1.820 bln

Result Drivers
ENTERPRISE MOMENTUM - Enterprise revenue grew 7.8% year over year, its strongest growth rate in three years, per CEO Eric S. Yuan
AI ADOPTION - Strong adoption of Zoom Virtual Agent and broader AI-first portfolio drove high-double-digit ARR expansion, per CEO
LARGE CUSTOMER GROWTH - Number of customers contributing more than $100,000 in trailing 12 months revenue up 8.2% year over year

Company press release: ID:nGNX4fpm7W

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$1.28 bln
$1.27 bln (24 Analysts)
Q2 Adjusted EPS
Beat
$1.55
$1.48 (25 Analysts)
Q2 Adjusted operating Margin
 
40.00%
 
Q2 Operating Margin
 
24.60%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Zoom Communications, Inc. is $120.00, about 14.5% above its August 24 closing price of $104.83
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Aug 25 - Canada's Tribe Q2 revenue rises on recurring software and services rev growth
Aug 25 - Intuit's annual forecast falls short of estimates as it prioritizes customer growth
Aug 25 - Online recruitment platform Kanzhun Q2 revenue rises 14% on enterprise customer growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)