Zoom Reports Q2 Earnings with Strong Enterprise Growth but Faces Online Segment Challenges
Zoom (ZM) reported second-quarter earnings for fiscal year 2027, showing total revenue of $1.277 billion, a 4.9% increase from the prior year. The growth was primarily driven by strong performance in its Enterprise segment, which reached $787.5 million and accounted for 62% of overall revenue. Non-GAAP operating margin stood at 40%, slightly down from 41.3% a year ago due to increased investments in AI infrastructure. The company raised full-year guidance across multiple metrics, including revenue now projected between $5.085 billion and $5.095 billion—up 4.5% growth at the midpoint—and non-GAAP EPS of $6.08–$6.12. Free cash flow for FY 2027 is expected to reach up to $1.82 billion, reflecting strong first-half performance and reduced capital expenditures. However, Zoom warned that its Online segment faces challenges due to changing consumer behavior in product discovery, leading the company to temper full-year growth expectations for this part of the business.
Tickers: $ZM
Topics: ai_products enterprise_growth free_cash_flow revenue