Zoom Video Comms Earnings Outlook: Analysts Expect $1.13 EPS on Aug 21

Zoom Video Comms is expected to release its quarterly earnings report on Thursday, August 21. Analysts forecast an EPS of $1.13. The company's previous earnings release beat EPS estimates, leading to a 0.24% drop in share price. The stock has a 52-week high of $72.19, up 5.42% over the past year. Analysts rate Zoom Video Comms Neutral, with a consensus 1-year price target of $88.73, indicating a potential 22.91% upside.

Zoom Video Communications (ZM) is scheduled to release its second-quarter fiscal 2026 earnings report on Thursday, August 21. Analysts expect the company to report earnings per share (EPS) of $1.38, down from $1.39 in the year-ago period [2]. The company projects quarterly revenue of $1.2 billion, representing approximately 3% year-over-year (YoY) growth at the midpoint [1, 3].

The company's previous earnings release beat EPS estimates, leading to a 0.24% drop in share price. The stock has a 52-week high of $72.19, up 5.42% over the past year. Analysts rate Zoom Video Comms Neutral, with a consensus 1-year price target of $88.73, indicating a potential 22.91% upside [2].

Key factors influencing Zoom's Q2 results include the continued stability of its core business and the impact of macroeconomic headwinds. The Enterprise segment, which drove 6% YoY growth in the first quarter, is expected to maintain momentum. The Online segment may see improved performance following a $1 monthly price increase for Pro SKUs, which is projected to contribute $10-$15 million to full-year revenues [1, 3].

Zoom's aggressive AI innovation strategy is expected to have dominated the second quarter's operational narrative. The July launch of Custom AI Companion, which connects to third-party applications, marks a significant monetization opportunity. The rollout of agentic AI capabilities transformed AI Companion into an autonomous task executor, potentially driving higher customer engagement and retention [1, 3].

The company's product expansion beyond core video conferencing, including Zoom Phone and Contact Center customers, is likely to have contributed incrementally to Q2 results. High-growth products such as Zoom Phone and Contact Center customers increased mid-teens and 65% YoY, respectively, in the first quarter [1, 3].

Despite these positive indicators, Zoom faces intense competition from Microsoft Teams, RingCentral, and Cisco Webex. The company's stock has declined 11.8% in the past six months compared to the broader Zacks Computer and Technology sector's growth of 10% [1, 3].

References:
[1] https://finance.yahoo.com/news/zoom-video-gears-report-q2-153000593.html
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/47252584/zoom-gears-up-for-q2-print-here-are-the-recent-forecast-changes-from-wall-streets-most-accurate-analysts
[3] https://www.ainvest.com/news/zoom-video-q2-earnings-preview-revenue-growth-expected-3-yoy-2508/