After-Hours Stock Move: ZM –0.36%
Earnings vs. Estimates
| Metric | Reported | Consensus | Beat/Miss |
|---|---|---|---|
| Q2 Revenue | $1.217B | $1.20B | ✅ Beat |
| Q2 EPS (Non-GAAP) | $1.53 | $1.38 | ✅ Beat |
| FY26 Revenue Guide | $4.825–4.835B | $4.81B | ✅ Slight Raise |
| FY26 EPS Guide | $5.81–5.84 | $5.61 | ✅ Raised |
Quick Take: Zoom delivered its strongest YoY revenue growth in 11 quarters (+4.7%), with operating margins expanding to 41.3%. It also raised full-year revenue, EPS, and FCF guidance. Despite the clean print, the muted stock reaction shows investors want more proof that AI and Contact Center can bend the growth curve meaningfully
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| Metric | Prior FY26 | Post-Guide FY26 | Shift |
|---|---|---|---|
| Revenue | ~$4.81B | $4.825–4.835B | ✅ Higher |
| EPS | $5.61 | $5.81–5.84 | ✅ Higher |
| FCF | ~$1.7B | $1.74–1.78B | ✅ Higher |
Zoom is proving cost discipline and margin strength, but without a demand re-acceleration story, AI Companion, Contact Center, and Phone growth need to show measurable revenue lift to move the stock.
| KPI | Q2 Result | YoY | Context |
|---|---|---|---|
| Enterprise Revenue | $731M | +7.0% | Continues to outpace Online |
| Online Revenue | $487M | +1.4% | Flat churn (2.9%), showing stabilization |
| $100K+ Customers | 4,274 | +8.7% | Expansion with large deals intact |
| Net Dollar Expansion (Enterprise) | 98% | – | Below 100% still a drag on growth |
| Operating Margin (Non-GAAP) | 41.3% | +210 bps | Strong leverage, a positive highlight |
| Metric | Prior FY26 | New FY26 | Direction |
|---|---|---|---|
| Revenue | ~$4.81B | $4.825–4.835B | 📈 Slight Raise |
| EPS (Non-GAAP) | ~$5.61 | $5.81–5.84 | 📈 Raised |
| FCF | ~$1.7B | $1.74–1.78B | 📈 Raised |
| Metric | Fiscal Period Ending 2025-07-31 | Previous Year (2024-07-31) | YoY |
|---|---|---|---|
| Revenue | $1.22B | $1.16B | 4.70% |
| Operating Income | $321.70M | $202.37M | 58.97% |
| Net Income | $358.60M | $219.01M | 63.73% |
| Cash And Equivalents | $7.80B | $1.54B | 406.67% |
| Operating Cash Flow | $515.90M | $449.33M | 14.81% |
| Free Cash Flow | $508.00M | N/A | 0.00% |
“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.” – CEO Eric Yuan
Yuan is leaning on AI adoption to reframe Zoom as a growth story, but with revenue still growing mid-single digits, the Street isn’t fully buying the acceleration yet.
Zoom will close the day up 1.10% as earnings numbers drop in about 20 minutes. Stay tuned as we post live updates right here.
ZM has beaten EPS in 4 straight quarters, but price reaction has been three negative, one strong positive—the market wants clearer acceleration in revenue/billings and proof that AI/CCaaS can lift growth.
| Quarter | EPS Surprise | 1‑Day Move | 7‑Day Move | 14‑Day Move |
|---|---|---|---|---|
| Q1 FY2026 (May 21, 2025) | +9.16% | –0.24% | –1.22% | –5.00% |
| Q4 FY2025 (Feb 24, 2025) | +7.63% | –8.48% | –6.78% | –8.51% |
| Q3 FY2025 (Nov 25, 2024) | +5.34% | –6.31% | –6.37% | –5.87% |
| Q2 FY2025 (Aug 21, 2024) | +13.93% | +12.97% | +14.69% | +11.74% |
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Zoom just dropped its Q2 numbers after the bell, and shares moved in a direction that has investors questioning whether the AI growth story can survive its own rising expectations.
