Zoom zips up as AI offerings propel Q2 Enterprise revenue; full-year forecast increases

[Zoom headquarters in Silicon Valley]
Sundry Photography/iStock Editorial via Getty Images

Zoom (NASDAQ:ZM [https://seekingalpha.com/symbol/ZM]) increased its full-year revenue and earnings per share forecast when it reported its second quarter fiscal 2026 financial results [https://seekingalpha.com/news/4488119-zoom-communications-non-gaap-eps-of-1_53-beats-by-0_15-revenue-of-1_22b-beats-by-20m]on Thursday.

Shares climbed 5% during early post-market trading on Thursday after gaining 1.4% by the time the market closed.

For the quarter ended June 30, the video communication and workflow automation platform reported adjusted earnings per share of $1.53, which was more than the consensus estimate of $1.38.

Revenue for the quarter totaled $1.21B, which was slightly more than the estimate of $1.20B. This represented a 4.7% year-over-year increase that was mostly driven by gains in its Enterprise segment revenue, which increased 7% to $730.7M. Online revenue increased 1.4% to $486.6M.

Looking ahead, Zoom expects third quarter revenue to range from $1.21B to $1.22B, with a midpoint of $1.215B more than the estimate of $1.21B. The company projects EPS to range from $1.42 to $1.44, which is also more than the estimate of $1.39.

For the full fiscal year, Zoom increased its forecast. Revenue is now expected to range from $4.83B to $4.84B compared to a prior forecast of $4.8B to $4.81B. The estimate is $4.81B. Adjusted EPS is now projected to range from $5.81 to $5.84 versus the prior projection of $5.56 to $5.59. The consensus estimate calls for $5.60.

"AI is transforming the way we work together, and Zoom is at the forefront, driving innovation that helps people get more done, reduce costs, and deliver better experiences for customers and employees alike," said Zoom CEO and founder Eric S. Yuan. "We delivered an across-the-board strong Q2 marked by achieving our highest year-over-year revenue growth in 11 quarters and expanding GAAP operating margin year over year by 9 percentage points. With our robust performance, we are happy to raise our full year outlook for revenue, non-GAAP operating income, as well as free cash flow, which we now expect to be in the range of $1.74 billion to $1.78 billion."

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