Companies /Technology

Zoom Video Communications Inc - Class A

NASDAQ: ZM Software - Application
$95.44
▼ $0.13 (−0.14%) today
Markets open · 3:04pm ET

Q2 2026 Earnings

Reported Aug 21, 2025, 4:06pm ET · SEC source
$1.53
Beat +11.02%
EPS · est. $1.38
$1.2B
Beat +1.58%
Revenue · est. $1.2B
−1.8%
Trailing market
ZM vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+5%+10%+15%Aug 21Aug 22report 4:06pm ETearnings+1.6%+13.9%
0+5%+10%+15%Aug 21Aug 22earnings+1.6%+13.9%
ZM +13.9%S&P 500 +1.6%
0+5%+10%+15%Aug 21Aug 22report 4:06pm ETearnings+1.7%+13.9%
0+5%+10%+15%Aug 21Aug 22earnings+1.7%+13.9%
ZM +13.9%NASDAQ +1.7%
−5%0+5%Aug 20Aug 29report 4:06pm ETearnings+1.4%+5.8%
−5%0+5%Aug 20Aug 29earnings+1.4%+5.8%
ZM +5.8%S&P 500 +1.4%
−5%0+5%Aug 20Aug 29report 4:06pm ETearnings+1.2%+5.8%
−5%0+5%Aug 20Aug 29earnings+1.2%+5.8%
ZM +5.8%NASDAQ +1.2%
+12.71%
Day of report
−1.36%
Next session
−1.27%
One week
+0.65%
30 days

S&P 500 over the same 30 days: +2.45%.

Did ZM Beat Earnings? Q2 2026 Results

Zoom delivered a convincing beat across both top and bottom lines in Q2 FY2026, with earnings per share of $1.53 clearing the $1.38 consensus estimate by 11.02% and revenue of $1.22 billion edging past expectations by 1.58% to mark the company's strongest year-over-year revenue growth in 11 quarters at 4.7%. The standout driver behind the earnings outperformance was a dramatic expansion in operating leverage, with GAAP operating margin widening 9 percentage points year over year to 26.4% as stock-based compensation expense fell to $188.70 million from $237.95 million a year ago, while GAAP net income climbed 65.7% to $358.59 million. Enterprise revenue, which grew 7.0% to $730.70 million, carried much of the momentum, supported by an 8.7% increase in customers generating more than $100,000 in trailing 12-month revenue. Free cash flow surged to $507.97 million, reinforcing management's confidence in raising full-year FY2026 revenue guidance to a range of $4.83 billion to $4.83 billion, with non-GAAP EPS now expected between $5.81 and $5.84.

Key Takeaways
  • Highest year-over-year revenue growth in 11 quarters at 4.7%
  • Enterprise revenue growth of 7.0% year over year
  • GAAP operating margin expanded 9 percentage points year over year to 26.4%
  • Non-GAAP operating margin of 41.3% vs 39.2% year over year
  • 4,274 customers contributing more than $100,000 in trailing 12-month revenue, up 8.7% year over year
  • Stock-based compensation expense declined significantly to $188.7 million from $238.0 million
  • Capital expenditures dropped to $8.0 million from $84.2 million year over year

“AI is transforming the way we work together, and Zoom is at the forefront, driving innovation that helps people get more done, reduce costs, and deliver better experiences for customers and employees alike.”

Zoom CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026, Zoom expects total revenue of $1.210 billion to $1.215 billion, non-GAAP operating income of $465.0 million to $470.0 million, and non-GAAP diluted EPS of $1.42 to $1.44 on approximately 307 million diluted shares. For full fiscal year 2026, the company raised guidance: total revenue of $4.825 billion to $4.835 billion, non-GAAP operating income of $1.905 billion to $1.915 billion, non-GAAP diluted EPS of $5.81 to $5.84 on approximately 308 million diluted shares, and free cash flow of $1.74 billion to $1.78 billion. Guidance excludes impact from $724.7 million of authorized share repurchase remaining.

ZM YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$400.0M$800.0M$1.2B$1.2B$1.2BRevenue$877.5M$944.1MGross Profit$202.4M$321.7MOperating Income$219.0M$358.6MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

ZM Revenue by Segment

Enterprise$730.7M+7.0%
Online$486.6M+1.4%

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