Q2 2026 Zoom Communications Inc Earnings Call Transcript
Key Points
- Zoom Communications Inc (ZM) reported its fastest revenue growth in 11 quarters, with a 4.7% year-over-year increase to $1.217 billion.
- The company achieved significant progress in AI adoption, with AI Companion monthly active users growing over four times year-over-year.
- Zoom's enterprise business showed strength, with revenue growing 7% year-over-year and representing 60% of total revenue.
- The company launched Virtual Agent 2.0, which has already seen successful deployments, such as with SecureOne, leading to cost savings and enhanced sales prospecting.
- Zoom Phone continued to perform well, sustaining mid-teens ARR growth and gaining market share, highlighted by a major five-year, seven-figure ARR deal displacing Cisco.
- Despite the revenue growth, the guidance for Q3 indicates a slowdown, with expected revenue growth of only 3% year-over-year.
- The macroeconomic environment remains dynamic, with potential impacts on IT budgets and customer spending.
- There is a noted scrutiny in some geographies, although partially abated, which could affect future growth.
- The company faces competitive pressure from hyperscalers offering AI solutions at different pricing models, impacting Zoom's pricing strategy.
- While AI innovations are progressing, the full financial benefits from new AI products are not expected until fiscal 2027, indicating a delay in monetization.
(audio in progress) today's webinar is being recorded. I will now hand things over to Charles Eveslage, Head of Investor Relations. Charles, over to you.
Thank you, Megan. Hello, everyone, and welcome to Zoom's earnings video webinar for the second quarter of fiscal year 2026. I'm joined today by Zoom's Founder and CEO, Eric Yuan; and Zoom's CFO, Michelle Chang.
Our earnings release was issued today after the market closed and may be downloaded from the Investor Relations page at investors.zoom.com. Also on this page, you'll be able to find a copy of today's prepared remarks and a slide deck with financial highlights that, along with our earnings release, include a reconciliation of GAAP to non-GAAP financial results. These measures should not be considered in isolation from or as a substitution for financial information prepared in accordance with GAAP.
During this call, we will make forward-looking statements, including statements regarding our financial
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