Shares of Zoom Video Communications Inc (NASDAQ:ZM) jumped more than 5% in premarket trading Friday following the company’s stronger-than-expected second-quarter results and a boost to its annual earnings guidance.
For the quarter ending July 31, Zoom reported adjusted earnings per share of $1.53 on revenue of $1.22 billion, surpassing analysts’ estimates of $1.38 per share on $1.2 billion in revenue.
Enterprise customers—those generating over $100,000 in trailing 12-month revenue and accounting for nearly a third of total revenue—rose 8.7% year over year to 4,274. Meanwhile, remaining performance obligations (RPO) climbed more than 5% from the prior year to around $4 billion. Zoom’s operating margin also exceeded expectations at 41.3%, compared with the consensus of 38.7%.
Mizuho analysts described the results as “good FQ2 results with better enterprise trends expected” in the latter half of the year.
“We remain optimistic that top line can reaccelerate to MSD%+ given opportunity from emerging products (CCaaS, Workvivo, AI Companion), while the more aggressive approach to buybacks ($463M in Q2) is a positive for shares in our view,” they added.
Zoom provided guidance for Q3 with adjusted EPS projected between $1.42 and $1.44 on revenue of $1.210B to $1.215B. For fiscal 2026, the company now anticipates adjusted EPS in the range of $5.81 to $5.84 on revenue between $4.825B and $4.835B, up from the prior guidance of $5.56 to $5.59 EPS on $4.8B–$4.81B in revenue.
Zoom Video Communications stock price
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