Zoom Q2 revenue rises on Enterprise momentum but fails to impress
ZM•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
Overview
- U.S. 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
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
Key details and analyst coverage
| Metric | Beat/Miss |
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