The guidance raise and Enterprise acceleration (7.8% YoY) are the key positives—monitor Q3 revenue guidance ($1.275-1.280B, implying ~4% YoY growth) for deceleration risk. The AI portfolio (Virtual Agent +256%) and $1.3B buyback provide downside support, but with 59% analyst bullishness already priced in, upside may be capped. Watch for continued Enterprise NRR improvement above 100% as a catalyst.
Price Chart
Executive Summary
Zoom reported Q2 FY27 results with a 5.0% EPS beat ($1.55 vs $1.48 consensus) and 4.9% YoY revenue growth, driven by Enterprise revenue accelerating to 7.8% growth—its strongest in three years. The company raised full-year revenue guidance to $5.085-5.095B and EPS to $6.08-6.12, while AI portfolio metrics (Virtual Agent customers +256% YoY) signal durable expansion. The beat is modest but the guidance raise and Enterprise momentum are positive, though the stock's 59% bullish analyst rating and +2.74% T+20 historical win rate suggest limited upside surprise potential.
Key Financial Metrics
Key Facts
- Q2 FY27 revenue $1.277B (+4.9% YoY), Enterprise revenue $787.5M (+7.8% YoY, strongest in 3 years)
- Non-GAAP EPS $1.55 vs consensus $1.48 (5.0% beat)
- Full-year FY27 guidance raised: revenue $5.085-5.095B, non-GAAP EPS $6.08-6.12
- AI portfolio scaling: Zoom Virtual Agent customer count +256% YoY
- Enterprise net dollar expansion rate improved to 99% from 98% YoY
- Free cash flow $472.4M (37.0% margin), $1.3B remaining share repurchase authorization
- GAAP net income $1.54B ($5.15 diluted) included $1.61B gains on strategic investments
Financial Impact
Revenue beat of ~$7M (0.6%) vs consensus; EPS beat of $0.07 (5.0%); full-year guidance raised by ~$50M at midpoint
Risk Factors
- Online revenue growth decelerated to 0.6% YoY, indicating consumer/ SMB headwinds
- GAAP operating margin contracted to 24.6% from 26.4% YoY due to R&D and G&A investment
- Free cash flow declined 7.0% YoY to $472.4M, though still strong at 37.0% margin
- Full-year guidance implies H2 revenue growth deceleration to ~3.5% from Q2's 4.9%
- $1.61B gains on strategic investments inflated GAAP net income—non-GAAP net income actually declined 1.6% YoY
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3350878 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 21d ago | Insider Cluster | $95.57 $88.77 | ▼ −7.12% | ▼ −6.89% | $92.46 (−3.25%) |
Sep 10, 2026 21d ago | Insider Cluster | $95.57 $88.77 | ▼ −7.12% | ▼ −6.89% | $92.46 (−3.25%) |
Sep 2, 2026 29d ago | 8-K | $98.14 $95.57 | ▼ −2.62% | ▼ −1.47% | $92.46 (−5.79%) |
Aug 25, 2026 5w ago | Press Release | $93.83 $95.86 | ▲ +2.16% | ▲ +2.28% | $92.46 (−1.46%) |
Aug 14, 2026 6w ago | Insider Cluster | $105.56 $104.83 | ▼ −0.69% | ▲ +0.50% | $92.46 (−12.41%) |
Aug 7, 2026 7w ago | Insider Cluster | $107.20 $105.48 | ▼ −1.60% | ▼ −1.56% | $92.46 (−13.75%) |
Jul 22, 2026 10w ago | Press Release | $85.81 $92.41 | ▲ +7.69% | ▲ +10.09% | $92.46 (+7.75%) |
Jul 16, 2026 11w ago | Insider Cluster | $91.13 $84.11 | ▼ −7.70% | ▼ −7.02% | $92.46 (+1.46%) |
Jul 15, 2026 11w ago | Insider Cluster | $92.92 $84.11 | ▼ −9.48% | ▼ −7.81% | $92.46 (−0.50%) |
Jul 2, 2026 13w ago | Press Release | $87.15 $89.88 | ▲ +3.14% | ▲ +2.21% | $92.46 (+6.10%) |
US Market Status
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