Zoom Lifts Full-Year Outlook After AI-Driven Q2 Beat

Zoom Communications posted stronger-than-expected results for its fiscal second quarter ended 31 July, reporting revenue of $1.22 billion, a 4.7% year-on-year increase and the company’s fastest growth in 11 quarters. Adjusted earnings per share rose to $1.53, topping analysts’ $1.38 average estimate, while enterprise revenue grew 7% to $730.7 million. The company credited uptake of its newer artificial-intelligence tools and an expanded software portfolio for the performance. Chief Executive Officer Eric Yuan said the AI-driven features are helping customers ‘get more done, reduce costs and deliver better experiences.’ Zoom ended the quarter with 4,274 customers contributing at least $100,000 in annual revenue, up 8.7% from a year earlier. Profitability also improved: free cash flow climbed 39% to $508 million and the non-GAAP operating margin reached 41.3%. Zoom repurchased roughly six million shares during the period, underscoring management’s confidence in the outlook. On the strength of the results, Zoom raised its full-year forecasts. The company now expects fiscal-2026 revenue of $4.825 billion to $4.835 billion and adjusted EPS of $5.81 to $5.84, both above prior guidance. Free cash flow is projected at $1.74 billion to $1.78 billion. Shares rose about 5–6% in late trading following the announcement.