Shares of Zoom Communications Inc. were up more than 5% in late trading today after the online communications company impressed investors with earnings and revenue beats in its fiscal 2026 second quarter.
For the quarter that ended on July 31, Zoom reported adjusted earnings per share of $1.53, up from $1.39 in the same quarter of the previous fiscal year, on revenue of $1.22 billion, up 4.7% year-over-year. Both figures were ahead of the $1.38 per share and revenue of $1.2 billion expected by analysts.
Zoom ended the quarter with 4,274 customers contributing more than $100,000 in trailing 12-month revenue, up 8.7% year-over-year, while the company reported a 12-month dollar expansion rate for enterprise customers of 98%. Online average monthly churn came in at 2.9%, flat year-over-year.
Net cash provided by operating activities was $515.9 million, up from $449.3 million in the second quarter of fiscal year 2025 and Zoom had cash, cash equivalents and marketable securities of $7.8 billion as of the end of July.
Business highlights in the quarter included the July 9 launch of new agent-based artificial intelligence capabilities for Zoom’s platform that help users orchestrate tasks to save time during their workday.
The release included a new Custom AI Companion add-on that can connect to more than 16 third-party apps without leaving Zoom. The AI Companion add-on is available for online purchase and includes support for integration into third-party conferencing apps such as Microsoft Corp.’s Teams and Google LLC’s Meet.
At an annual industry analyst event later the same month, Zoom said that its ambitions extend well beyond video conferencing, highlighting a strategic pivot toward disrupting how work gets done, not just how people communicate. Chief Executive Officer Eric Yuan claimed that “work is broken,” noting that around 40% of a worker’s time is consumed by navigating disparate tools like email, chat and documents.
Zoom’s response is to unify context and data, for example, their Docs and Mail apps, which aren’t necessarily striving to outdo Microsoft on features but instead offer real value through centralized data access. The idea is to make searching across chat, email and documents easier, along with setting the stage for more intelligent, AI-driven workflows through its AI Companion.
“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 Yuan in the company’s earnings release.
For its fiscal 2026 third quarter, Zoom expects adjusted earnings per share of $1.42 to $1.44 on revenue of $1.207 billion to $1.212 billion. Analysts had been expecting $1.39 per share and revenue of $1.21 billion.
For the full fiscal year, the company expects adjusted earnings of $5.81 to $5.84 on revenue of $4.817 billion to $4.827 billion. Both figures were ahead of the $5.61 per share and revenue of $4.81 billion expected by analysts.
Photo: Pixabay
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