Zoom Communications Q2 Earnings Call Highlights

Zoom Communications Q2 Earnings Call Highlights

Zoom Communications Q2 Earnings Call Highlights Written by MarketBeat August 25, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points Enterprise momentum strengthened: Zoom’s fiscal Q2 revenue rose 4.9% year over year to $1.28 billion, while enterprise revenue grew 7.8%—its strongest rate in three years. Enterprise customers represented 62% of revenue, supported by larger, longer-term, multi-product agreements. AI products gained traction: Licensed Workplace AI users increased 125%, Zoom Virtual Agent customers rose more than 250%, and paid customers for Zoom Revenue Accelerator grew 41%. The $250 million Common Room acquisition adds buyer-intelligence capabilities to Zoom’s expanding AI and customer-experience portfolio. Outlook and cash generation remained strong: Zoom raised its fiscal 2027 free-cash-flow forecast to $1.78 billion-$1.82 billion and expects annual revenue of $5.085 billion-$5.095 billion. The company ended the quarter with $7.2 billion in cash and repurchased approximately $352 million of shares.

Zoom Communications NASDAQ: ZM reported second-quarter fiscal 2027 revenue growth of 4.9% year over year to $1.28 billion, exceeding the high end of its guidance by $7 million, as enterprise revenue rose 7.8% in its strongest growth rate in three years. Founder and CEO Eric Yuan said the company’s enterprise momentum reflected execution against three priorities: enhancing Zoom Workplace with artificial intelligence, expanding AI-first customer-experience offerings, and developing new AI products. Licensed monthly active users of Workplace AI features increased 125% from a year earlier, he said.

“AI is becoming increasingly embedded in how users work throughout the communication and collaboration life cycle,” Yuan said, describing Zoom’s strategy as an AI-first “system of action” designed to turn conversations and insights into workflows and business outcomes. Enterprise platform expansion Enterprise revenue represented 62% of total revenue during the quarter, up two percentage points from a year earlier. The number of enterprise customers generating more than $100,000 in trailing-12-month revenue rose 8% year over year, and those customers accounted for 33% of company revenue. Enterprise trailing-12-month net dollar expansion was 99%, up one point from the prior-year period and unchanged from the prior quarter.

Yuan cited several customer wins across Zoom Workplace, Phone and Contact Center. One of the largest U.S. technology companies renewed Zoom Workplace and expanded annual recurring revenue by $1.9 million, while a U.S. wealth manager upgraded to Zoom Workplace Enterprise Premier and rolled out Zoom Phone across its workforce, replacing multiple vendors. Zoom Phone continued to grow in the teens on an ARR basis. CFO Michelle Chang said all of the company’s top 10 Phone deals in the quarter involved competitive replacements. About half of the top 10 Phone deals also included Contact Center, highlighting what Chang described as growing integration between unified communications and customer-experience deployments. Zoom’s remaining performance obligations increased 14% year over year to approximately $4.5 billion, driven by a 25% increase in non-current RPO. Chang said the growth reflected larger, longer-term and multi-product platform agreements. Deferred revenue grew 6% to $1.56 billion.

AI customer-experience products gain traction Zoom CX ARR grew at a high double-digit year-over-year rate, according to Yuan, and the business posted a record number of seven-figure ARR deals. Paid AI was included in nine of the top 10 Zoom CX deals, he said. Zoom Vir...