Thomas RichmondPublished
Quick Read
Zoom (ZM) enters Q2 FY27 earnings up 21% year to date, with Polymarket traders pricing a 94% chance of a beat.
AI Companion paid users surged 184% year over year, with investors watching whether enterprise net dollar expansion crosses 100% for the first time.
Zoom trades at 17x forward earnings with analysts targeting $117, and a raised FY27 outlook tonight would validate the AI-driven growth thesis.
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Live Updates #
Zoom’s AI Growth Story Faces a Big Test in Q2 Earnings Tonight
Zoom Communications reports fiscal second-quarter results after the closing bell, with management previously guiding for revenue between $1.265-$1.27 billion.
Polymarket traders assign a 94% probability of an earnings beat, putting most of the pressure on Zoom’s outlook rather than the headline quarterly numbers.
The stock trades at roughly 17x forward earnings, compared with analysts’ average price target of $116.80. Investors will closely examine whether Zoom’s AI-first products and Zoom Customer Experience can accelerate growth before its core enterprise business matures.
A raised fiscal 2027 outlook would validate the company’s expanding platform strategy, while a guidance cut would revive concerns about Zoom’s post-pandemic durability.
Zoom Communications (NASDAQ:ZM | ZM Price Prediction) is expected to report fiscal Q2 2027 results at 4:05 PM ET today, August 25. Shares trade near $101.58, up 18.44% year to date, with AI adoption and contact-center momentum framing the setup.
Momentum Meets a Rising Bar #
Last quarter delivered a 9.47% EPS beat on revenue of $1.239 billion, up 5.47% year over year. Enterprise revenue climbed 7.2%, and the non-GAAP operating margin expanded 130 basis points to 41.1%.
CEO Eric Yuan flagged that “AI Companion paid users grew 184% year over year, and My Notes reached 1.5 million licensed users within just four months of launch.” Net dollar expansion improved to 99% from 98%, though online monthly churn ticked up to 3.0%. Zoom also authorized an incremental $1.0 billion buyback.
Consensus Estimates #
| Metric | Q2 FY27 Guide | YoY Change | FY27 Guide |
|---|---|---|---|
| Revenue | $1.265B to $1.27B | +4.1% | $5.08B to $5.09B |
| Non-GAAP EPS | $1.45 to $1.47 | Flat | $5.96 to $6.00 |
| Op. Margin | 40.3% | Modest expansion | 40.7% |
Growth remains in the mid-single digits, but margin durability and free cash flow of $1.7-$1.74 billion for the year keep the profitability story intact.
What I’m Watching Tonight: Margins and AI Monetization #
Tonight, I’ll be watching whether Zoom Customer Experience sustains the high double-digit growth rate management flagged, and whether channel-driven wins (management said 10 out of 10 top ZCX deals involved partners) continue displacing legacy vendors.
Analysts will also focus on whether enterprise net dollar expansion crosses 100%. It has hovered at 99%, and a break above that threshold would signal that AI attach and Custom AI Companion deals (Raymond James at 10,000 seats, plus MongoDB) are translating into expansion revenue.
Zoom’s CFO Michelle Chang told investors, “The most important thing is to ensure that AI monetization and pressure total revenue growth.“ I’ll also watch commentary on the pace of the new
$1 billion repurchase, online churn trends, and any FX guidance adjustments given the $10.2 million tailwind that flattered Q1.
Earnings Reaction History #
| Quarter | EPS Surprise | Day-Of Move | 1-Week Move | 30-Day Move |
|---|---|---|---|---|
| Q1 FY27 | +9.47% | +9.19% | +5.66% | -21.54% |
| Q4 FY26 | -3.11% | -11.58% | +2.37% | +4.16% |
| Q3 FY26 | +5.76% | +9.85% | -0.81% | -0.01% |
| Q2 FY26 | +11.02% | +12.71% | -1.27% | +0.65% |
On average, shares moved 0.99% seven days after earnings over the past year.
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Thomas Richmond → Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.