Companies /Technology

Zoom Video Communications Inc - Class A

NASDAQ: ZM Software - Application
$95.36
▼ $0.21 (−0.22%) today
Markets closed · 5:24pm ET

Q2 2027 Earnings

Reported Aug 25, 2026, 4:05pm ET · SEC source
$1.55
Beat +5.02%
EPS · est. $1.48 Adjusted
$1.3B
Beat +0.65%
Revenue · est. $1.3B
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0+3%Aug 25Aug 26report 4:05pm ETearnings+0.6%−4.1%
−6%−3%0+3%Aug 25Aug 26earnings+0.6%−4.1%
ZM −4.1%S&P 500 +0.6%
−6%−3%0+3%Aug 25Aug 26report 4:05pm ETearnings+1.2%−4.1%
−6%−3%0+3%Aug 25Aug 26earnings+1.2%−4.1%
ZM −4.1%NASDAQ +1.2%
−4%0+4%+8%Aug 24Sep 2report 4:05pm ETearnings−0.2%−1.3%
−4%0+4%+8%Aug 24Sep 2earnings−0.2%−1.3%
ZM −1.3%S&P 500 −0.2%
−4%0+4%+8%Aug 24Sep 2report 4:05pm ETearnings−0.4%−1.3%
−4%0+4%+8%Aug 24Sep 2earnings−0.4%−1.3%
ZM −1.3%NASDAQ −0.4%
−7.03%
Day of report
+6.86%
Next session
+2.16%
One week

Did ZM Beat Earnings? Q2 2027 Results

Zoom Communications, Inc. posted a solid second-quarter fiscal 2027 report, beating Wall Street expectations on both the top and bottom lines as its Enterprise segment showed renewed momentum. The company reported adjusted EPS of $1.55, clearing the $1.48 consensus estimate by 5.02%, while revenue reached $1.28 billion, a 4.9% year-over-year increase that edged past the $1.27 billion analyst forecast by 0.65%. The clearest driver behind the quarter was Enterprise revenue of $787.50 million, which grew 7.8% year over year, a rate management described as its strongest in three years, offsetting more modest 0.6% growth in the Online segment. Non-GAAP operating margin held at 40.0%, while free cash flow came in at $472.40 million. Looking ahead, management guided full-year FY27 revenue to $5.09 billion at the midpoint and non-GAAP EPS of $6.08 to $6.12, signaling continued confidence in its AI-first platform strategy even as margin and cash flow metrics face modest year-over-year pressure.

Key Takeaways
  • Enterprise revenue grew 7.8% YoY, strongest growth rate in three years
  • Customers contributing more than $100,000 in trailing 12-month revenue grew 8.2% YoY to 4,625
  • Trailing 12-month net dollar expansion rate for Enterprise customers improved to 99% from 98%
  • AI-first Customer Experience portfolio delivered high-double-digit ARR expansion
  • Zoom Virtual Agent customer count increased 256% year over year
  • Online average monthly churn steady at 2.9%
  • Online customers with at least 16 months of continual service represented 75.6% of total Online MRR, up 70 bps YoY

“FY27 continues to progress well, reflecting focused execution against our three priorities and clear Enterprise business momentum. Total revenue grew 4.9% year over year, anchored by 7.8% growth in Enterprise revenue, its strongest growth rate in three years.”

Zoom CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY27, Zoom expects total revenue of $1.275B–$1.280B, non-GAAP operating income of $510.0M–$515.0M, and non-GAAP diluted EPS of $1.46–$1.48 on approximately 301 million weighted average shares. For full fiscal year 2027, the company updated guidance to total revenue of $5.085B–$5.095B, non-GAAP operating income of $2.065B–$2.075B, non-GAAP diluted EPS of $6.08–$6.12, and free cash flow of $1.780B–$1.820B. Revenue in constant currency for FY27 is expected to be $5.071B–$5.081B. EPS and share count guidance excludes the impact from approximately $1.3 billion of authorized share repurchase remaining.

ZM YoY Financials

Q2 2027 vs Q2 2026 · SEC filings Q2 2026 Q2 2027
$0$500.0M$1.0B$1.5B$1.2B$1.3BRevenue$944.1M$985.5MGross Profit$321.7M$314.3MOperating Income$358.6M$1.5BNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

ZM Revenue by Segment

Enterprise$787.5M+7.8%
Online$489.7M+0.6%

Figures from SEC filings and company reports. Not investment advice.