Zoom Communications, Inc. Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Software | Market Cap: ₹29.5K Cr
- Q1 FY27 revenue grew 5.5% YoY to $1.24 billion, exceeding guidance and among the best recent growth rates. - For Q2 FY27, Zoom expects revenue between $1.265 billion to $1.27 billion, representing 4.1% year-over-year growth at midpoint.
From Zoom Communications, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹100.46
Market Cap
₹29.5K Cr
P/E Ratio
14.7
Revenue Rank
Margin Rank
How does Zoom Communications, Inc. rank in Software?
Compare Zoom Communications, Inc. against every Software company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 4- →Q1 FY27 revenue grew 5.5% YoY to $1.24 billion, exceeding guidance and among the best recent growth rates.
- →Full year FY27 revenue guidance raised to $5.08-$5.09 billion, reflecting 4.4% YoY growth at midpoint.
- →Q2 revenue guidance: $1.265-$1.27 billion, ~4.1% YoY growth at midpoint.
- →Enterprise business growing strongly at 7.2% YoY, representing 61% of total revenue, with increasing large customers.
- →Online business expected to show slight growth in FY27, but deceleration from Q2-Q4 due to FX and comps.
- →AI monetization and product diversification are key drivers of durable revenue growth.
- →Larger, longer-term multiproduct platform deals driving RPO growth (+11% YoY).
- →Incremental $1 billion share repurchase authorized, reflecting confidence in long-term growth.
- →AI-driven product innovation and expanding customer experience solutions expected to sustain momentum.
📈 Profitability & Margins
Rank 2- →For Q2 FY27, Zoom expects revenue between $1.265 billion to $1.27 billion, representing 4.1% year-over-year growth at midpoint.
- →Non-GAAP operating income guidance for Q2 is $508 million to $513 million, with an operating margin of 40.3% at midpoint.
- →Non-GAAP EPS for Q2 is expected to be between $1.45 and $1.47.
- →For full FY27, revenue guidance is raised to $5.08 billion to $5.09 billion, a 4.4% year-over-year growth at midpoint.
- →Full-year non-GAAP operating income is expected between $2.065 billion and $2.075 billion, equating to a 40.7% operating margin at midpoint.
- →Full-year non-GAAP EPS guidance is increased to $5.96 to $6.00.
- →Free cash flow for FY27 is projected between $1.7 billion and $1.74 billion.
- →The Board authorized an additional $1 billion share repurchase, reinforcing confidence in continued growth and profitability.
🏗️ Capital Expenditure Plans
Yes- →The transcript does not provide explicit details about current or future capital expenditures (capex) or strategic capital investments.
- →The focus is primarily on AI innovation, product development, and co-innovation with customers rather than capital investments.
- →Zoom is heavily investing in AI technology and R&D, spending approximately 26% of revenue on R&D, indicating a strategic focus on technology and talent rather than physical capital assets.
- →There is mention of potential acquisitions for innovative technology or services they cannot build internally, signifying strategic investments via acquisitions.
- →The company emphasizes internal capital allocation aimed at maximizing ROI and growth priorities, particularly around AI and customer experience.
- →No explicit dollar amounts or detailed capex plans are shared in this section of the transcript.
💰 Fundraising & Capital Structure
No information- →No mention of any current or planned new fundraising through debt or equity in the provided transcript.
- →The company highlighted a strong cash position with $7.7 billion in cash, equivalents, and marketable securities.
- →Zoom announced a $1 billion incremental share repurchase authorization, indicating confidence and use of cash for buybacks rather than raising new capital.
- →Emphasis is on leveraging strong cash flow and balance sheet to drive shareholder value.
- →No references to issuing new debt or equity; focus remains on organic growth, buybacks, and cash flow generation.
📋 Order Book & Pipeline
No informationKey Metrics
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Margin
Capex
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Frequently Asked Questions
What were Zoom Communications, Inc. Q2 FY26 results?
- Q1 FY27 revenue grew 5.5% YoY to $1.24 billion, exceeding guidance and among the best recent growth rates. - For Q2 FY27, Zoom expects revenue between $1.265 billion to $1.27 billion, representing 4.1% year-over-year growth at midpoint.
What is Zoom Communications, Inc. share price analysis?
Zoom Communications, Inc. currently shows a neutral. The stock trades at a P/E of 14.7 with a market cap of $29,458. Investors should review the full earnings analysis for detailed insights.
Is Zoom Communications, Inc. planning capital expenditure?
- The transcript does not provide explicit details about current or future capital expenditures (capex) or strategic capital investments.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.