Zoom Communications, Inc.

In trading on Wednesday, shares of Zoom Video Communications Inc (Symbol: ZM) crossed above their 200 day moving average of $67.77, changing hands as high as $69.09 per share. Zoom Video Communications Inc shares are currently trading up about 1.6% on the day. The chart below shows the one year performance of ZM shares, versus its 200 day moving average:
Looking at the chart above, ZM's low point in its 52 week range is $58.87 per share, with $85.10 as the 52 week high point — that compares with a last trade of $68.67.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Also see:
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CTCM shares outstanding history
Institutional Holders of HTGM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bullish Two Hundred Day Moving Average Cross - ZM

The S&P 500 Index ($SPX) (SPY) today is up by +1.62%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +1.93%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +1.81%. September E-mini S&P futures (ESU25) are up +1.58%, and September E-mini Nasdaq futures (NQU25) are up +1.75%.
Stock indexes are rallying sharply today, with the Dow Jones Industrials posting a new all-time high. Stock prices jumped and bond yields tumbled after comments from Fed Chair Powell opened the door for a Fed rate cut next month. Fed Chair Powell said downside risks to employment are rising, and the shifting balance of risks may warrant adjusting monetary policy. The 10-year T-note yield fell to a 1-week low of 4.25% on the comments, and the chances of a Fed rate cut at the September 29-30 FOMC meeting rose to 90% from 71% before Powell spoke.
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Fed Chair Powell said, "The stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance. Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."
Comments today from Boston Fed President Susan Collins were slightly hawkish when she said, US economic growth is slowing, but overall economic fundamentals are solid as she sees upside risks to inflation and downside risks on labor. She added that Fed policy is modestly restrictive, which is appropriate.
On the geopolitical front, US Vice President Vance said negotiations over ending Russia's war in Ukraine are focused on security guarantees for Ukraine and territory Russia wants to control, including Ukrainian territory that it currently isn't occupying, as the US tries to broker a peace deal between the two countries. The US is working to set up a meeting between Presidents Putin and Zelensky, and if that meeting goes well, President Trump said he'll look to follow up with a trilateral summit with the leaders.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, "I'll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we'll be setting sometime next week, week after." Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 90% at the September 16-17 FOMC meeting, up from 71% Thursday. The markets are discounting the chances at 53% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 93% of S&P 500 firms having reported Q2 earnings, about 83% of companies exceeded profit estimates.
Overseas stock markets today are higher. The Euro Stoxx 50 rallied to a 5-month high and is up +0.67%. China's Shanghai Composite climbed to a new 10-year high and closed up +1.45%. Japan's Nikkei Stock 225 recovered from a 1.5-week low and closed up +0.05%.
Interest Rates
September 10-year T-notes (ZNU5) today are up +17 ticks, and the 10-year T-note yield is down -5.6 bp to 4.2716%. Sep T-notes rallied to a 1-week high today, and the 1-year T-note yield dropped to a 1-week low of 4.248%. T-note prices jumped today on dovish comments from Fed Chair Powell, who said downside risks to employment are rising and the shifting balance of risks may warrant adjusting monetary policy. Powell's comments boosted the chances for a 25 bp Fed rate cut to 90% at the September 29-30 FOMC meeting from 71% on Thursday.
Gains in T-notes are limited by hawkish comments from Boston Fed President Susan Collins, who said modestly restrictive Fed policy is appropriate. Also, rising inflation expectations are bearish for T-notes after the 10-year breakeven inflation rate rose to a 2-week high today at 2.416%.
European government bond yields today are moving lower. The 10-year German bund yield is down -2.8 bp to 2.729%. The 10-year UK gilt yield fell from a 2.75-month high of 4.759% and is down -2.2 bp to 4.707%.
German Q2 GDP was revised lower to -0.3% q/q and -0.2% y/y from the previously reported -0.1% q/q and unchanged y/y.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Strength in chipmakers is supporting gains in the broader market. Microchip Technology (MCHP) is up more than +6% to lead gainers in the Nasdaq 100. Also, ON Semiconductor (ON) and NXP Semiconductors NV (NXPI) are up more than +6%, and GlobalFoundries (GFS) is up more than +5%. In addition, ARM Holdings Plc (ARM), Marvell Technology (MRVL), and Intel (INTC) are up more than +4%, and Lam Research (LRCX), Micron Technology (MU), Texas Instruments (TXN), Analog Devices (ADI), and ASML Holding NV (ASML) are up more than +3%.
Homebuilders and home building supplies are climbing today after the 10-year T-note yield fell to a 1-week low, a supportive factor for housing demand. Builders FirstSource (BLDR) is up more than +8% to lead gainers in the S&P 500, and Mohawk Industries (MHK) is up more than +7%. Also, Lennar (LEN), PulteGroup (PHM), DR Horton (DHI), and Toll Brothers (TOL) are up more than +5%.
Ubiquiti (UI) is up more than +19% after reporting Q4 revenue of $759.2 million, well above the consensus of $621 million.
Zoom Communications (ZM) is up more than +9% after reporting Q2 revenue of $1.22 billion, better than the consensus of $1.20 billion, and raising its 2026 revenue forecast to $4.83 billion-$4.84 billion from a previous estimate of $4.80 billion-$4.81 billion, stronger than the consensus of $4.81 billion.
Qxo Inc (QXO) is up more than +6% after Benchmark Company LLC initiated coverage on the stock with a recommendation of buy and a price target of $50..
Esab Corp (ESAB) is up more than +4% after Loop Capital Markets upgraded the stock to buy from hold with a price target of $140.
Ulta Beauty (ULTA) is up more than +2% after Barclays upgraded the stock to overweight from equal weight with a price target of $589.
Intuit (INTU) is down more than -5% to lead losers in the S&P 500 and Nasdaq 100 after forecasting 2026 adjusted operating income of $8.61 billion-$8.69 billion, the midpoint below the consensus of $8.67 billion.
CSX Corp (CSX) is down more than -4% after announcing a joint intermodal service with BNSF to ship between California, North Carolina, and Florida.
Workday (WDAY) is down more than -4% after reporting an unexpected -$5 million loss in Q2 professional services adjusted gross profit versus expectations of a $9.5 million profit.
Telecommunication stocks are under pressure today. Verizon Communications (VZ) is down more than -1% to lead losers in the Dow Jones Industrials. Also, AT&T (T) and T-Mobile US (TMUS) are down more than -1%.
Earnings Reports(8/22/2025)
BJ's Wholesale Club Holdings Inc (BJ), Buckle Inc/The (BKE), New Fortress Energy Inc (NFE), Ubiquiti Inc (UI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Soar as Fed Chair Powell Signals Lower Interest Rates

Zoom Communications’ ZM second-quarter fiscal 2026 adjusted earnings of $1.53 per share beat the Zacks Consensus Estimate by 11.68% and increased 10.1% year over year.
Revenues of $1.22 billion beat the consensus mark by 1.66% and increased 4.7% year over year. Adjusting for the impact of foreign currency, revenues in constant currency were $1.21 billion, up 4.4% year over year.
Q2 Details of ZM
Enterprise revenues, which account for 60% of total revenues, increased 7% year over year to $730.7 million. Online revenues, which account for 40% of total revenues, increased 1.4% year over year to $486.6 million.
Customers contributing more than $100,000 in revenues in the trailing 12 months grew 8.7% to 4,274. These customers accounted for 32% of revenues and grew 9% year over year.
Zoom Communications, Inc. Price, Consensus and EPS Surprise
The number of Enterprise customers at the end of the fiscal first quarter was approximately 184,000. In the second quarter, the percentage of total Online MRR pertaining to Online customers with a continued term of service of at least 16 months was 74.9%, which increased 50 basis points (bps) year over year.
The company reported a trailing 12-month net dollar expansion rate for Enterprise customers of 98% and an Online average monthly churn of 2.9%, flat year over year.
Zoom witnessed traction with Workvivo, where customers grew 142% year over year.
Non-GAAP Operating Details of ZM
Non-GAAP gross margin in the fiscal second quarter was 79.8% compared with 78.6% in the year-ago period and expanded 120 bps.
Research and development expenses increased 10.9% year over year to $133.8 million. Sales and marketing expenses increased 0.2% to $271.6 million, and general and administrative expenses decreased 4.1% to $63.1 million.
Non-GAAP operating income rose 10.5% to $503.2 million year over year. The operating margin came in at 41.3% compared with the year-ago quarter’s operating margin of 39.2%.
ZM’s Balance Sheet & Cash Flow
Total cash, cash equivalents, and marketable securities as of July 31, 2025, were $7.8 billion, which remained unchanged from the previous quarter.
Net cash provided by operating activities was $515.9 million for the fiscal second quarter, compared with $449.3 million in the year-ago quarter. Free cash flow was $508 million, compared with $365.1 million in the year-ago quarter.
ZM’s Q3 & FY26 Guidance
Zoom expects third-quarter fiscal 2026 revenues between $1.210 billion and $1.215 billion.
Non-GAAP income from operations is expected to be between $465.0 million and $470.0 million.
Non-GAAP earnings per share are expected in the range of $1.42-$1.44.
For fiscal 2026, Zoom expects revenues in the range of $4.825-$4.835 billion.
Non-GAAP income from operations is expected to be between $1.905 billion and $1.915 billion.
Non-GAAP earnings per share are expected in the band of $5.81-$5.84.
Zoom’s Zacks Rank & Stocks to Consider
Currently, ZM carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader sector are nCino NCNO, Dell Technologies DELL and Hewlett Packard HPE. While nCino sports a Zacks Rank #1 (Strong Buy) at present, Dell Technologies and Hewlett Packard carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
NCNO shares have declined 17.2% in the year-to-date (YTD) period. It is slated to report second-quarter fiscal 2026 results on Aug. 26.
DELL shares have gained 11.1% YTD. It is set to report second-quarter fiscal 2026 results on Aug. 28.
HPE shares have returned 2.3% YTD. It is scheduled to report third-quarter fiscal 2025 results on Sept. 03.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zoom Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

The S&P 500 Index ($SPX) (SPY) today is up by +0.36%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.65%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.20%. September E-mini S&P futures (ESU25) are up +0.40%, and September E-mini Nasdaq futures (NQU25) are up +0.25%.
Stock indexes are moving higher today after five consecutive sessions of declines. Short covering and position squaring are lifting stocks ahead of a speech later this morning from Fed Chair Powell at the Fed’s annual symposium at Jackson Hole, Wyoming. The markets are waiting to see if Mr. Powell stays cautious on inflation or tilts toward supporting a softer labor market.
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Stocks may come under pressure today if Fed Chair Powell takes a hawkish tilt and expresses caution about cutting interest rates. Several Fed policymakers this week expressed concerns about inflation, with Cleveland Fed President Beth Hammack saying she’d oppose a Fed rate cut “if the meeting were tomorrow,” and Kansas City President Jeffrey Schmid and Chicago Fed President Goolsbee both said inflation remains too high. Solid US economic data and hawkish Fed commentary over the past week have reduced the chances of a 25 bp Fed rate cut at next month’s FOMC meeting to 71% from 93% last Thursday before the July PPI report.
Comments today from Boston Fed President Susan Collins were slightly hawkish when she said, US economic growth is slowing, but overall economic fundamentals are solid as she sees upside risks to inflation and downside risks on labor. She added that Fed policy is modestly restrictive, which is appropriate.
On the geopolitical front, US Vice President Vance said negotiations over ending Russia’s war in Ukraine are focused on security guarantees for Ukraine and territory Russia wants to control, including Ukrainian territory that it currently isn’t occupying, as the US tries to broker a peace deal between the two countries. The US is working to set up a meeting between Presidents Putin and Zelensky, and if that meeting goes well, President Trump said he’ll look to follow up with a trilateral summit with the leaders.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after.” Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced “within the next week or so.” According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 71% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 50% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 93% of S&P 500 firms having reported Q2 earnings, about 83% of companies exceeded profit estimates.
Overseas stock markets today are higher. The Euro Stoxx 50 is up +0.29%. China’s Shanghai Composite climbed to a new 10-year high and closed up +1.45%. Japan’s Nikkei Stock 225 recovered from a 1.5-week low and closed up +0.05%.
Interest Rates
September 10-year T-notes (ZNU5) today are up +4 ticks, and the 10-year T-note yield is down -2.2 bp to 4.306%. Sep T-notes are moving higher on short covering and position squaring ahead of comments later today from Fed Chair Powell at the Fed’s annual symposium in Jackson Hole, Wyoming. Gains in T-notes are limited by hawkish comments from Boston Fed President Susan Collins, who said modestly restrictive Fed policy is appropriate.
European government bond yields today are mixed. The 10-year German bund yield is down -0.9 bp to 2.748%. The 10-year UK gilt yield climbed to a 2.75-month high of 4.759% and is up +0.9 bp to 4.739%.
German Q2 GDP was revised lower to -0.3% q/q and -0.2% y/y from the previously reported -0.1% q/q and unchanged y/y.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Strength in chipmakers is supporting gains in the broader market. ON Semiconductor (ON), Intel (INTC), Texas Instruments (TXN), GlobalFoundries (GFS), Analog Devices (ADI), ASML Holding NV (ASML), and NXP Semiconductors NV (NXPI) are up more than +1%.
Ubiquiti (UI) is up more than +19% after reporting Q4 revenue of $759.2 million, well above the consensus of $621 million.
Zoom Communications (ZM) is up more than +6% after reporting Q2 revenue of $1.22 billion, better than the consensus of $1.20 billion, and raising its 2026 revenue forecast to $4.83 billion-$4.84 billion from a previous estimate of $4.80 billion-$4.81 billion, stronger than the consensus of $4.81 billion.
Ross Stores (ROST) is up more than +3% to lead gainers in the S&P 500 after reporting Q2 EPS of $1.56, above the consensus of $1.53. Chairman Wang sold 5 million shares in an overnight registered block trade between $116 and $118 per share.
PDD Holdings (PDD) is up more than +3% to lead gainers in the Nasdaq 100 on bullish optimism for Chinese stocks after the Shanghai Composite rallied to a new 10-year high today.
Esab Corp (ESAB) is up more than +2% after Loop Capital Markets upgraded the stock to buy from hold with a price target of $140.
Qxo Inc (QXO) is up more than +1% after Benchmark Company LLC initiated coverage on the stock with a recommendation of buy and a price target of $50..
Ulta Beauty (ULTA) is up more than +1% after Barclays upgraded the stock to overweight from equal weight with a price target of $589.
Intuit (INTU) is down more than -7% to lead losers in the S&P 500 and Nasdaq 100 after forecasting 2026 adjusted operating income of $8.61 billion-$8.69 billion, the midpoint below the consensus of $8.67 billion.
Workday (WDAY) is down more than -6% after reporting an unexpected -$5 million loss in Q2 professional services adjusted gross profit versus expectations of a $9.5 million profit.
Nvidia (NVDA) is down -0.60% to lead losers in the Dow Jones Industrials after reports the company has instructed component makers, including Samsung and Amkor, to stop production related to H20 AI chips for China.
Paramount Skydance (PSKY) is down more than -1% after Guggenheim Securities downgraded the stock to neutral from buy.
Earnings Reports(8/22/2025)
BJ’s Wholesale Club Holdings Inc (BJ), Buckle Inc/The (BKE), New Fortress Energy Inc (NFE), Ubiquiti Inc (UI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Higher Ahead of Fed Chair Powell’s Comments

Key Points
Zoom beat on earnings and (barely) on revenue last night.
Zoom grew reported earnings an incredible 66% year over year.
Free cash flow is stacking up strongly, and Zoom stock is cheap.
Pandemic communications star Zoom Communications (NASDAQ: ZM) stock, um (I'm trying not to say "zoomed"), moved ahead quickly Friday morning, rising 8% through 9:50 a.m. ET after beating soundly on its fiscal Q2 2026 earnings report last night.
Analysts forecast Zoom would earn $1.38 per share, adjusted for one-time items, on sales of $1.2 billion. Zoom earned $1.53 instead, and sales were a bit ahead of $1.2 billion.
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Zoom Q2 earnings
The report wasn't quite as good as that makes it sound. Sales grew less than 5% year over year, and Zoom's earnings as calculated according to generally accepted accounting principles (GAAP) weren't quite as robust as the "adjusted" figure. GAAP profits were actually only $1.16 per share.
Still -- and here I'm going to say it -- those earnings zoomed 66% higher in comparison to last year's Q2.
(For what it's worth, the rise in adjusted earnings was only 10%).
Is Zoom stock a buy?
Commenting on the results, CEO Eric Yuan said "Zoom is at the forefront [of how] AI is transforming the way we work together," essentially arguing that Zoom is an artificial intelligence stock -- and the numbers back him up.
Zoom generated an incredible $508 million in Q2 free cash flow (FCF), up 39% year over year, and the company's generated nearly $1 billion ($971.3 million, to be precise) in FCF so far this year. If Zoom can keep going at that rate, the company could conceivably rack up nearly $2 billion in cash profits this year, and at a market cap of only $24 billion, this would value the stock at barely 12 times FCF.
Whether Zoom's growing at 66%, 39%, or even only 10%, that probably makes it a great growth stock buy.
Should you invest $1,000 in Zoom Communications right now?
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoom Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Zoom Communications Stock Zoomed Today

(RTTNews) - Zoom Communications, Inc. (ZM) reported earnings for its second quarter that Increases, from the same period last year
The company's earnings totaled $358.6 million, or $1.16 per share. This compares with $219.0 million, or $0.70 per share, last year.
Excluding items, Zoom Communications, Inc. reported adjusted earnings of $1.53 per share for the period.
The company's revenue for the period rose 4.7% to $1.217 billion from $1.162 billion last year.
Zoom Communications, Inc. earnings at a glance (GAAP) :
-Earnings: $358.6 Mln. vs. $219.0 Mln. last year. -EPS: $1.16 vs. $0.70 last year. -Revenue: $1.217 Bln vs. $1.162 Bln last year.
-Guidance: Next quarter EPS guidance: $1.42 - $1.44 Next quarter revenue guidance: $1.210 - $1.215 bln Full year EPS guidance: $5.81 - $5.84 Full year revenue guidance: $4.825 - $4.835 bln
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zoom Communications, Inc. Reports Climb In Q2 Income

Key Points
Revenue rose 4.7% year over year to $1,217.2 million in Q2 FY2026, outpacing both company guidance and analyst estimates (non-GAAP).
Non-GAAP earnings per share were $1.53, beating expectations by $0.14 and up 10.0% year over year.
Operating margin expanded by 9 percentage points year over year on a GAAP basis, and Free cash flow (non-GAAP) jumped 39.1% year over year compared to Q2 FY2025.
Zoom Video Communications (NASDAQ:ZM), best known for its video conferencing software and now expanding into unified communications, released its second quarter fiscal 2026 results on August 21, 2025. The company reported higher revenue, stronger non-GAAP earnings, and sharply improved non-GAAP margins compared to both its own past guidance and Wall Street expectations. Revenue came in at $1,217.2 million, above both the $1,211.12 million analyst consensus (non-GAAP) and the company’s forecasted range. Non-GAAP earnings per share (EPS) registered at $1.53, ahead of the $1.39 estimate. Free cash flow (non-GAAP) grew 39.1% year over year compared to Q2 FY2025. Overall, the quarter reflected significant progress in profitability, ongoing cash generation, and continued momentum in its core Enterprise segment.
Metric
Q2 FY26(ended July 31, 2025)
Q2 FY26 Estimate
Q2 FY25(ended July 31, 2024)
Y/Y Change
EPS (Non-GAAP)
$1.53
$1.39
$1.39
10.1%
Revenue
$1,217.2 million
$1,211.12 million
$1,162.5 million
4.7%
Operating Margin
26.4 %
17.4 %
9.0 pp
Free Cash Flow (Non-GAAP)
$508.0 million
$365.1 million
39.1%
Net Income
$358.6 million
$219.0 million
63.8%
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2026 earnings report.
About the business and focus areas
Zoom builds cloud-based collaboration tools, including video meetings, team chat, cloud phone systems, and developer application programming interfaces (APIs). Its products are designed to support flexible work, from large-scale webinars to all-in-one communications platforms for enterprises and small businesses. The company's mission is to power human connection by making communications frictionless across locations and devices.
Recently, the business has prioritized expanding its core video capabilities, developing artificial intelligence (AI) tools, broadening integrations, and scaling internationally. Key drivers of success include its Enterprise segment performance, maintaining strong security and privacy standards, and advancing features like AI Companion, a generative AI assistant embedded in Zoom’s work platform. Continued engagement and retention among enterprise customers, the ability to upsell new tools, and expanding in international markets are also central to long-term growth.
Quarterly highlights and financial performance
During Q2 FY2026, Zoom saw a 4.7% year-over-year increase in GAAP revenue. That growth was driven mainly by the Enterprise segment, which generated $730.7 million in revenue, up 7.0% year over year. The number of Enterprise customers spending more than $100,000 annually climbed to 4,274, up 8.7% from the prior year.
The Online segment, which services smaller businesses and individual users, contributed $486.6 million—up 1.4% year over year. Online customer retention remained stable, with monthly customer churn holding steady at 2.9%. Notably, 74.9% of recurring revenue in the Online business now comes from customers with 16 months or more of continual service, which rose 0.5 percentage points year over year.
Operating margin expanded to 26.4%, up from 17.4% in Q2 FY2025. The company also delivered $508.0 million in free cash flow (non-GAAP), a 39.1% year-over-year increase. Net income (GAAP) rose to $358.6 million. The company repurchased approximately 6.0 million shares as part of an ongoing buyback program, which has now retired 27.4 million shares to date. This activity partially offset ongoing dilution from stock-based compensation, which is still a sizable component of the company’s compensation expenses.
Zoom continued to build out its AI-first work platform, centering its efforts on AI Companion. This product is a digital assistant for meetings, developed with both Zoom-designed and third-party AI models. According to CEO Eric Yuan, AI features now come at no extra charge to paid users, unlike many competitors. AI Companion powers tasks like meeting summaries, scheduling, and workflow automations. Zoom’s federated AI approach underpins this strategy, aiming for both productivity gains and cost reductions. Custom AI Companion, designed for enterprises with specialized needs, has seen growing demand, but its revenue contribution is not expected to be material until later periods.
Zoom Phone, which is its cloud-based phone system, and the Contact Center software continue to show momentum. The company maintains a strong security posture, holding to end-to-end encryption and a policy of not using customer data for AI training. While there were no major updates on product security, these measures remain crucial for customer trust.
However, the impact of these development initiatives was not broken out in this quarter’s financial metrics. International expansion continues to be a company focus, with localization efforts such as translated captions in over 35 languages and strategic channel partnerships outside the U.S. However, the latest release did not provide detailed international growth data.
While operational progress was evident, challenges persist. The Enterprise net dollar expansion rate held at 98%, below the 100% benchmark that signals expansion within existing accounts is keeping up with any churn. Persistent stock-based compensation, totaling about 17% of revenue in Q1 FY2026, remains a significant expense. Additionally, competition remains strong, especially from providers bundling communications tools into broader productivity suites.
Looking forward: Guidance and outlook
For Q3 FY2026, management guided GAAP revenue in the range of $1,210 to $1,215 million. This forecast suggests nearly flat revenue compared to the just-reported quarter—a pattern that is typical for this point in the company’s fiscal year. Non-GAAP operating income is expected to be $465 to $470 million, and non-GAAP EPS is expected to fall to $1.42 to $1.44.
Full-year guidance was raised: management now expects revenue of $4,825 to $4,835 million, up from the prior range, and free cash flow (non-GAAP) of $1.74 to $1.78 billion. Non-GAAP operating income is now forecast at $1,905 to $1,915 million, and non-GAAP EPS in the range of $5.81 to $5.84. The company has $724.7 million remaining on its authorized share repurchase plan as of July 31, 2025. ZM does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Zoom Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zoom Reports 39% Cash Flow Jump in Q2

(RTTNews) - Zoom Video Communications, Inc. (ZM) will host a conference call at 5:00 PM ET on August 21, 2025, to discuss Q2 26 earnings results.
To access the live webcast, log on to https://investors.zoom.us/news-events/events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zoom Video Communications Q2 26 Earnings Conference Call At 5:00 PM ET

The following companies are expected to report earnings after hours on 08/21/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Intuit Inc. (INTU)is reporting for the quarter ending July 31, 2025. The computer software company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.30. This value represents a 113.11% increase compared to the same quarter last year. In the past year INTU has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.41%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for INTU is 47.50 vs. an industry ratio of 21.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Workday, Inc. (WDAY)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.80. This value represents a 116.22% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for WDAY is 64.81 vs. an industry ratio of 34.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Ross Stores, Inc. (ROST)is reporting for the quarter ending July 31, 2025. The discount retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.52. This value represents a 4.40% decrease compared to the same quarter last year. In the past year ROST has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.8%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ROST is 23.53 vs. an industry ratio of 28.60.
Zoom Communications, Inc. (ZM)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.77. This value represents a 8.45% increase compared to the same quarter last year. In the past year ZM has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 24.29%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ZM is 22.48 vs. an industry ratio of 34.20.
Oculis Holding AG (OCS)is reporting for the quarter ending June 30, 2025. The biomedical (gene) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.53. This value represents a 5.36% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for OCS is -7.19 vs. an industry ratio of 2.80.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After-Hours Earnings Report for August 21, 2025 : INTU, WDAY, ROST, ZM, OCS

Investors in Zoom Communications Inc (Symbol: ZM) saw new options become available today, for the October 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ZM options chain for the new October 3rd contracts and identified one put and one call contract of particular interest.
The put contract at the $71.00 strike price has a current bid of $3.25. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $71.00, but will also collect the premium, putting the cost basis of the shares at $67.75 (before broker commissions). To an investor already interested in purchasing shares of ZM, that could represent an attractive alternative to paying $72.04/share today.
Because the $71.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 57%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.58% return on the cash commitment, or 38.86% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Zoom Communications Inc, and highlighting in green where the $71.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $79.00 strike price has a current bid of $1.09. If an investor was to purchase shares of ZM stock at the current price level of $72.04/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $79.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.17% if the stock gets called away at the October 3rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ZM shares really soar, which is why looking at the trailing twelve month trading history for Zoom Communications Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ZM's trailing twelve month trading history, with the $79.00 strike highlighted in red:
Considering the fact that the $79.00 strike represents an approximate 10% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 72%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.51% boost of extra return to the investor, or 12.84% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 42%, while the implied volatility in the call contract example is 41%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $72.04) to be 30%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Contrarian Outlook
IVT shares outstanding history
Institutional Holders of RWED
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zoom Communications, Inc.

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