Zoom Communications beat second-quarter earnings expectations with $1.28 billion in revenue and raised full-year guidance, driven by accelerating enterprise growth and surging adoption of its AI-powered Virtual Agent product.
The video communications platform reported Q2 revenue of $1.28 billion, up 4.9% year over year and exceeding analyst expectations of $1.27 billion by 0.7%. Adjusted earnings per share reached $1.55, beating the consensus estimate of $1.48 by 5%, according to StockStory.
The company’s enterprise business showed particular momentum, with enterprise revenue climbing 7.8% year over year—its strongest growth rate in three years. Zoom now counts 4,625 customers paying more than $100,000 annually, reflecting broad momentum across large accounts.
Zoom raised its full fiscal year 2027 revenue guidance to $5.08 billion to $5.09 billion, maintaining its prior outlook, and lifted adjusted EPS guidance to $5.96 to $6.00 from the previous range of $5.77 to $5.81, according to Benzinga. The midpoint EPS increase of roughly 2% reflects management confidence in profitability even as growth remains modest.
CEO Eric Yuan attributed the results to the company’s focus on artificial intelligence. “Our AI-first Customer Experience portfolio continues to scale, delivering high-double-digit ARR expansion, driven in part by strong adoption of Zoom Virtual Agent, whose customer count increased 256% year over year,” Yuan said in a statement. The Virtual Agent product, which automates customer service interactions, has become a key growth driver within Zoom’s broader suite of AI tools.
Zoom’s billings—a metric showing cash collected from customers—reached $1.34 billion in the quarter, up 5.2% year over year. The company’s net revenue retention rate held steady at 99%, indicating that existing customers are not expanding spending, a common challenge for mature SaaS platforms seeking to drive revenue growth beyond new customer acquisition.
The earnings beat comes as other major companies have also raised full-year outlooks on strong quarterly results, signaling resilience in corporate spending despite economic uncertainty. Zoom’s guidance raise underscores management’s belief that enterprise demand and AI product adoption will sustain momentum through the end of fiscal 2027.
Looking ahead, Zoom guided for Q3 revenue of approximately $1.28 billion, in line with analyst expectations, suggesting the company expects growth to stabilize at current levels. The modest guidance and the company’s low net revenue retention rate suggest that Zoom’s path to accelerating growth depends heavily on successful monetization of its AI products and continued enterprise customer wins.
Sources
- StockStory — Zoom Q2 CY2026 revenue, EPS beat, full-year guidance raise, enterprise growth acceleration, Virtual Agent customer growth, billings, net revenue retention rate
- Benzinga — Full-year FY2027 EPS and revenue guidance ranges and increases
- 247 Wall St — CEO Eric Yuan quote on AI adoption and Virtual Agent growth
