Zoom Q2 Earnings: Revenue Beats Estimates, Raises FY26 Guidance

Zoom Communications Inc. reported Q2 revenue of $1.22 billion, beating the consensus estimate of $1.20 billion. The company raised its FY26 guidance above estimates and expects third-quarter revenue of $1.21 billion to $1.215 billion. Zoom shares jumped 12.5% to $82.29 on Friday. Analysts made changes to their price targets on Zoom following the earnings announcement.

Zoom Video Communications Inc. (ZM) reported its second-quarter (Q2) financial results, exceeding analyst expectations and raising its full-year 2026 (FY26) guidance. The company reported earnings per share (EPS) of $1.53, surpassing the forecast of $1.37, and revenue of $1.22 billion, which was above the expected $1.20 billion [1].

The company's Q2 results highlighted robust growth across various segments. Total revenue increased by 4.7% year-over-year (YoY) and 4.4% in constant currency. Enterprise revenue grew by 7.0% YoY, reaching $730.7 million. GAAP operating margin was 26.4%, and non-GAAP operating margin was 41.3%. The number of customers contributing more than $100,000 in trailing 12 months (TTM) revenue increased by 8.7% YoY [1].

Zoom's founder and CEO, Eric S. Yuan, commented on the strong performance, noting the transformative impact of AI on collaboration and the company's leading position in AI-driven products. The company also announced a new collaboration with PwC to expand its Zoom Contact Center and AI offerings [2].

For the third quarter of FY26, Zoom expects total revenue between $1.210 billion and $1.215 billion and non-GAAP income from operations between $465.0 million and $470.0 million. For the full FY26, the company expects total revenue between $4.825 billion and $4.835 billion, non-GAAP income from operations between $1.905 billion and $1.915 billion, and non-GAAP diluted EPS between $5.81 and $5.84 [1].

Following the announcement, Zoom's shares rose by 12.5% to $82.29 on Friday, indicating strong investor confidence in the company's growth prospects. Analysts also adjusted their price targets on Zoom following the earnings report [1].

References:
[1] https://www.ainvest.com/news/zoom-video-communications-reports-q2-earnings-beat-raises-guidance-2508/
[2] https://seekingalpha.com/news/4488190-zoom-raises-fy26-revenue-outlook-amid-surging-ai-adoption-and-robust-enterprise-growth