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6d ago

Zoom Lifts Outlook After Q2 Beat as AI Tools Gain Traction

Analysts still project only modest revenue growth despite the quarterly beat.

A Zoom logo appears in this illustration taken August 18, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE – This April 18, 2019, file photo shows a sign for Zoom Video Communications ahead of the company’s Nasdaq IPO in New York. The video-conferencing service is cutting about 1,300 jobs, or approximately 15% of its workforce. CEO Eric Yuan said in a blog post Tuesday, Feb. 7, 2023, that the company ramped up staffing during the COVID-19 pandemic, when businesses became increasingly reliant on its service as people worked from home. Yuan said Zoom grew three times in size within 24 months to manage demand. (AP Photo/Mark Lennihan, File)
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Overview

  • Revenue reached $1.22 billion and adjusted EPS hit $1.53 for the quarter ended July 31, topping estimates.
  • Zoom raised fiscal 2026 guidance to about $4.83–$4.84 billion in revenue and $5.81–$5.84 in adjusted EPS.
  • Shares jumped after the report, rising as much as 9.8% on Friday following an initial after-hours gain.
  • Enterprise sales grew 7% to $730.7 million, with 4,274 customers each generating more than $100,000 over the past year.
  • New agentic AI offerings, including Virtual Agent 2.0 and a Custom AI Companion, are gaining adoption, with AI Companion now at millions of monthly active users—four times higher than a year ago.