Zoom just delivered another standout quarter. For the second quarter ending July 31, total revenue came in at $1.22 billion, outperforming Wall Street expectations of around $1.20 billion. Adjusted earnings per share hit $1.53, topping forecasts that hovered near $1.38 a share.
This financial beat highlights Zoom’s growing strength. It’s not just about video calls anymore—AI-powered features are turning heads and driving tangible business value.
Enterprise Demand Soars—Powered by AI
The enterprise segment is where the magic is happening. Enterprise revenue jumped 7% year-over-year, pulling in about $730.7 million of the Q2 haul, while smaller-business (online) revenue nudged up 1.4% to around $486.6 million.
AI isn’t just a nice-to-have—it’s a growth engine. Zoom’s enhancements, especially in AI Companion tools, are strengthening adoption across larger U.S. business clients and beyond.
Financial Highlights: Margins, Repurchases, and Cash
Margins continue to impress. Zoom reported a non-GAAP operating margin of 41.3%, with EPS rising 10% year-over-year.
Balance sheet? Strong. With $7.5 billion in cash, Zoom has ample flexibility to invest in AI growth, support operations, or return value to shareholders—even as it faces stiff competition from Microsoft Teams.
Upgraded Guidance: Zoom Sees Brighter Horizon
Encouraged by these results, Zoom raised its full-year guidance for fiscal 2026. Revenue is now expected in the range of $4.825 billion to $4.835 billion, with non-GAAP EPS projected at $5.81 to $5.84. For Q3, Zoom expects revenue between $1.21 billion and $1.215 billion, staying slightly ahead of estimates.
Why This Matters for U.S. Businesses and Investors
Hybrid Work Lives On: American companies are still investing in seamless collaboration. Zoom’s AI-first tools position it as a go-to for hybrid workflows.
AI Adoption Accelerates: From meeting summaries to task automation, AI is shifting from novelty to necessity in enterprise communications—and U.S. businesses are acting fast.
Investors Notice: The positive stock reaction—shares rose around 5% in after-hours trading—signals investor confidence in Zoom’s forward momentum.
What’s Next on Zoom’s AI Journey
Zoom may still be widely known for its video conferencing roots, but its real story now is AI-powered enterprise transformation.
Key areas to watch:
- AI Feature Rollouts: Will Zoom continue to expand capabilities that simplify workflows—like AI-generated summaries, task automation, or integrations with other business tools?
- Enterprise Traction: Can Zoom deepen relationships with large U.S. enterprises, winning more customers with its AI edge?
- Margin Management: Maintaining healthy margins while investing in AI will be crucial.
- Competitive Response: How will rivals like Microsoft or Cisco answer Zoom’s AI push? And how will that affect Zoom’s momentum?
Looking Forward
Zoom’s Q2 success reveals more than just solid numbers—it showcases the company evolving. AI isn’t a gadget; it’s now a cornerstone of enterprise communication strategy, especially in the U.S. Zoom’s upgraded forecasts and strong earnings demonstrate that line of sight for growth is solid.
As businesses continue to reshape how they work—balancing remote, hybrid, and in-person modes—the appetite for smarter tools is real. Zoom has put itself at the heart of that transformation. With AI as its engine, Zoom seems poised to open even more doors in the enterprise space—and that’s a story worth watching.