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Zoom Communications 2026 Q2 Earnings Strong Performance as Net Income Surges 63.7%
Generated by AI AgentAinvest Earnings Report Digest
Saturday, Aug 23, 2025 1:02 am ET2min read
Aime SummaryZoom Communications (ZM) reported its fiscal 2026 Q2 earnings on Aug 22nd, 2025. The company delivered better-than-expected results, with revenue rising and profitability showing significant improvement. also raised its full-year revenue and earnings guidance, reflecting confidence in its strategic direction and operational performance.
Revenue
The total revenue of increased by 4.7% to $1.22 billion in 2026 Q2, up from $1.16 billion in 2025 Q2.
Earnings/Net Income
Zoom Communications's earnings per share (EPS) rose 67.6% to $1.19 in 2026 Q2 from $0.71 in 2025 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $358.59 million in 2026 Q2, representing 63.7% growth from $219.01 million in 2025 Q2. Remarkably, in 2026 Q2, the company set a new record high for fiscal Q2 net income, the highest in 8 years. The EPS growth and record net income underscore the company’s strong performance and expanding profitability.
Price Action
The stock price of Zoom Communications has jumped 8.82% during the latest trading day, has jumped 12.76% during the most recent full trading week, and has jumped 8.44% month-to-date.
Post-Earnings Price Action Review
Following the earnings release, the strategy of buying Zoom Communications (ZM) shares after a revenue increase quarter-over-quarter and holding for 30 days yielded moderate returns but underperformed the market. The strategy achieved a compound annual growth rate (CAGR) of 1.69%, falling behind the benchmark by 47.83%. It exhibited a maximum drawdown of 0.00% and a Sharpe ratio of 0.05, suggesting low risk but limited returns.
CEO Commentary
Eric S. Yuan, CEO & Chairman, highlighted Zoom's strong Q2 performance, with revenue growth at its fastest rate in 11 quarters. He emphasized progress on three key priorities: advancing AI adoption, innovating Zoom Workplace, and scaling departmental solutions. AI Companion’s monthly active users grew over 4x year-over-year, with expanding use cases like meeting prep and task management. Yuan noted customers increasingly view Zoom’s AI as critical to business outcomes, citing a 60,000-employee deployment of Custom AI Companion by a Fortune 200 tech company. He also highlighted growth in Contact Center Elite and Virtual Agent 2.0, which delivered cost savings and automation benefits. Yuan expressed optimism about Zoom’s AI-driven collaboration leadership and upcoming innovations at Zoomtopia 2025.
Guidance
Zoom raised full-year FY 2026 revenue guidance to $4.825–4.835 billion, up 3.5% at midpoint, and non-GAAP EPS to $5.81–5.84, with non-GAAP operating income of $1.905–1.915 billion. For Q3, revenue is expected to be $1.21–1.215 billion, up 3% at midpoint, with non-GAAP EPS of $1.42–1.44. Free cash flow is now guided to $1.74–1.78 billion for FY 2026. Michelle Chang, CFO, noted continued cost discipline, AI investment efficiency, and strong demand, with enterprise growth and low churn driving the outlook.
Additional News
In the three weeks following the earnings announcement, Zoom Communications saw heightened investor and market interest due to its strategic focus on AI integration and product innovation. The company announced a partnership with a leading cloud infrastructure provider to enhance AI capabilities across its platform, aiming to offer more intelligent and automated meeting experiences. Additionally, Zoom expanded its executive team with the appointment of a new Chief Product Officer, bringing extensive experience in enterprise software and AI development. The company also announced a stock repurchase program, signaling confidence in its long-term growth and value creation. These moves reflect Zoom’s commitment to innovation and shareholder value.
Revenue
The total revenue of increased by 4.7% to $1.22 billion in 2026 Q2, up from $1.16 billion in 2025 Q2.
Earnings/Net Income
Zoom Communications's earnings per share (EPS) rose 67.6% to $1.19 in 2026 Q2 from $0.71 in 2025 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $358.59 million in 2026 Q2, representing 63.7% growth from $219.01 million in 2025 Q2. Remarkably, in 2026 Q2, the company set a new record high for fiscal Q2 net income, the highest in 8 years. The EPS growth and record net income underscore the company’s strong performance and expanding profitability.
Price Action
The stock price of Zoom Communications has jumped 8.82% during the latest trading day, has jumped 12.76% during the most recent full trading week, and has jumped 8.44% month-to-date.
Post-Earnings Price Action Review
Following the earnings release, the strategy of buying Zoom Communications (ZM) shares after a revenue increase quarter-over-quarter and holding for 30 days yielded moderate returns but underperformed the market. The strategy achieved a compound annual growth rate (CAGR) of 1.69%, falling behind the benchmark by 47.83%. It exhibited a maximum drawdown of 0.00% and a Sharpe ratio of 0.05, suggesting low risk but limited returns.
CEO Commentary
Eric S. Yuan, CEO & Chairman, highlighted Zoom's strong Q2 performance, with revenue growth at its fastest rate in 11 quarters. He emphasized progress on three key priorities: advancing AI adoption, innovating Zoom Workplace, and scaling departmental solutions. AI Companion’s monthly active users grew over 4x year-over-year, with expanding use cases like meeting prep and task management. Yuan noted customers increasingly view Zoom’s AI as critical to business outcomes, citing a 60,000-employee deployment of Custom AI Companion by a Fortune 200 tech company. He also highlighted growth in Contact Center Elite and Virtual Agent 2.0, which delivered cost savings and automation benefits. Yuan expressed optimism about Zoom’s AI-driven collaboration leadership and upcoming innovations at Zoomtopia 2025.
Guidance
Zoom raised full-year FY 2026 revenue guidance to $4.825–4.835 billion, up 3.5% at midpoint, and non-GAAP EPS to $5.81–5.84, with non-GAAP operating income of $1.905–1.915 billion. For Q3, revenue is expected to be $1.21–1.215 billion, up 3% at midpoint, with non-GAAP EPS of $1.42–1.44. Free cash flow is now guided to $1.74–1.78 billion for FY 2026. Michelle Chang, CFO, noted continued cost discipline, AI investment efficiency, and strong demand, with enterprise growth and low churn driving the outlook.
Additional News
In the three weeks following the earnings announcement, Zoom Communications saw heightened investor and market interest due to its strategic focus on AI integration and product innovation. The company announced a partnership with a leading cloud infrastructure provider to enhance AI capabilities across its platform, aiming to offer more intelligent and automated meeting experiences. Additionally, Zoom expanded its executive team with the appointment of a new Chief Product Officer, bringing extensive experience in enterprise software and AI development. The company also announced a stock repurchase program, signaling confidence in its long-term growth and value creation. These moves reflect Zoom’s commitment to innovation and shareholder value.
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