Abstract

Zoom Video Communications will report fiscal Q2 2027 results on August 25, 2026 Post-Mkt; this preview summarizes market forecasts for revenue, margins, net income, and adjusted EPS, alongside business segment trends and prevailing analyst views between January 1, 2026 and August 18, 2026.

Market Forecast

Consensus for the current quarter points to revenue of 1.27 billion US dollars, EBIT of 0.51 billion US dollars, and adjusted EPS of 1.48, implying year-over-year growth of 5.93% for revenue and 10.30% for EBIT, while EPS growth is projected at 7.92%. Company-level margin expectations, based on the prior quarter run-rate and operating discipline, imply gross margin broadly stable at a high-70s level and net profit margin in the low-30s, with incremental leverage from cost controls; adjusted EPS is guided to grow high-single digits year over year. Momentum remains centered on enterprise renewals and product attach across Zoom One and Contact Center, while online SMB trends are steady to mixed; Zoom Contact Center is highlighted as the fastest-growing product family from a small base, offering an expanding pipeline in the mid-market and enterprise.

Last Quarter Review

In the previous quarter, Zoom generated revenue of 1.24 billion US dollars, with a gross profit margin of 77.86%, GAAP net income attributable to common shareholders of 426.00 million US dollars, a net profit margin of 34.36%, and adjusted EPS of 1.55, with year-over-year increases of 5.47% for revenue and 8.39% for adjusted EPS. A notable highlight was operating efficiency: EBIT reached 0.51 billion US dollars, exceeding the consensus estimate and reflecting scale benefits in R&D and G&A. By business, enterprise products continued to underpin growth, while the company’s online direct business remained stable; the fastest-growing opportunity cited by management and partners is Zoom Contact Center, expanding from a relatively small revenue base with strong pipeline growth.

Current Quarter Outlook

Main revenue engine: Enterprise platform expansion

The quarter’s revenue is expected to be driven by enterprise cohorts expanding seat counts and adopting additional modules within Zoom One. Renewal rates have been stable in larger customers, and upsell activity has been aided by security, admin, and AI features that create stickier deployments. This dynamic typically supports mid-single-digit top-line growth with modest sequential improvement. The magnitude of outperformance will be sensitive to close rates in late-quarter enterprise deals and churn dynamics among smaller customers. Pricing discipline and mix shift toward annual enterprise contracts should help maintain gross margin near the high-70s, even as AI features and telephony usage add variable costs.

Largest growth option: Zoom Contact Center and AI suite

Zoom Contact Center continues to be the strongest growth vector, leveraging natively integrated voice, video, and chat to serve mid-market and enterprise customer service workflows. The addressable market is sizeable and competitors are fragmented, enabling Zoom to win with a unified agent desktop and rapid time-to-value. While current revenue contribution remains a small percentage of total, deal sizes are increasing as deployments scale and AI features such as intelligent routing, agent assist, and knowledge base summarization become differentiators. Year-over-year growth for this product family is expected to be well above the corporate average, and a meaningful contribution over the next several quarters could provide upside to both revenue and operating leverage if attach rates to existing Zoom One customers accelerate.

Stock-price drivers this quarter: Margin durability, AI monetization, pipeline conversion

Investor attention is likely to center on whether gross margin sustains near last quarter’s 77.86% amid rising AI utilization and telephony mix, and whether operating expenses remain controlled enough to expand EBIT from the 0.51 billion US dollars baseline. Evidence of AI monetization—either through premium tiers or higher attach across enterprise accounts—could support the projected 7.92% EPS growth and reinforce a path to double-digit EPS expansion. Pipeline conversion for large enterprise and public sector customers, alongside billings and remaining performance obligations growth, will inform durability of the mid-single-digit revenue trajectory; positive surprises here tend to correlate with multiple expansion.

Analyst Opinions

Across recent sell-side and institutional previews published between February 18, 2026 and August 18, 2026, the dominant stance is cautiously bullish, expecting in-line to modestly above-consensus results with stable margins and continued enterprise resilience. Several well-followed analysts highlight consistent execution on cost controls and disciplined investment in AI and Contact Center as reasons the company can meet or slightly exceed the 1.27 billion US dollars revenue and 1.48 EPS bar. The bullish camp emphasizes improving pipeline quality in enterprise and an expanding AI capability set that supports upsell, with valuation support if execution stays on track through the back half of the fiscal year.