Zoom Stock Earnings Reports

Zoom reported Q2 FY'26 results with revenue of $1.217B (up 4.7% year‑over‑year, 4.4% in constant currency), beating guidance. This quarter marked their fastest revenue growth in 11 quarters, driven by strength in Enterprise (7% growth; 60% of revenue) and continued stabilization of the Online segment (monthly churn 2.9%). Management emphasized AI as a key growth driver: AI Companion MAUs are up over 4x year‑over‑year, Custom AI Companion deployments (including a Fortune 200 tech customer for ~60,000 employees) are underway, and AI capabilities are accelerating wins in Contact Center (Contact Center customers >$100k ARR grew 94% YoY to 229) and Zoom Phone (mid‑teens ARR growth). Financials were strong: non‑GAAP gross margin 79.8% (target ~80%), non‑GAAP operating income $503M (41.3% margin), non‑GAAP diluted EPS $1.53, operating cash flow $516M and free cash flow $508M. Cash and short‑term investments were ~$7.8B. Zoom repurchased 6M shares for $463M in the quarter. Management raised FY'26 guidance: revenue now expected $4.825B–$4.835B (midpoint ~3.5% YoY growth), non‑GAAP operating income $1.905B–$1.915B (39.5% margin midpoint), non‑GAAP EPS $5.81–$5.84, and free cash flow $1.74B–$1.78B. Key investor considerations: AI is central to product strategy and deal wins (but broader monetization of newer AI SKUs is expected to be more meaningful in FY'27), Contact Center and Phone are primary high‑growth areas, margins remain strong despite AI investments (management is offsetting AI costs with cost efficiencies), and macro/geographic dynamics remain “dynamic” though signs of partial abatement of prior customer scrutiny were noted. Management reiterated share‑buyback execution and invited investors to Zoomtopia and an investor session after the event.