# Zoom Communications Inc. (ZM) Post Earning Analysis
Zoom Communications, Inc., founded by Eric S. Yuan in 2011 and based in San Jose, California, offers a comprehensive communications and collaboration platform. The company operates across three main geographical segments: the Americas, Asia Pacific, and Europe, Middle East, and Africa, providing innovative solutions that enhance connectivity and productivity for users worldwide.
Recent news highlights a significant surge in Zoom Communications (ZM) stock following its Q2 earnings report, which exceeded expectations and included a raised forecast. The company’s shares soared due to strong revenue growth and robust demand for its AI-powered solutions, marking its biggest rally in a year. This positive performance is attributed to the strength of Zoom’s enterprise unit and increased profitability driven by AI innovations.
Meanwhile, the broader stock market is poised to open lower as optimism for a Federal Reserve rate cut wanes. Investors are keenly awaiting Nvidia’s earnings and U.S. PCE inflation data, which could influence market movements. Nvidia, along with other major stocks like Tesla and Carnival, has been under scrutiny, with specific attention on its AI chip developments.
These developments suggest a mixed outlook for the stock market. Zoom’s robust performance could provide a positive narrative for tech stocks, especially those with strong earnings and innovative products. However, broader market sentiment remains cautious amid economic indicators and pending significant data releases.
## Earnings Trend Table
| Date | Estimate EPS | Reported EPS | Surprise % | |
|---|---|---|---|---|
| 0 | 2025-08-21 | 1.37 | 1.53 | 11.68 |
| 1 | 2025-05-21 | 1.31 | 1.43 | 9.41 |
| 2 | 2025-02-24 | 1.30 | 1.41 | 8.29 |
| 3 | 2024-11-25 | 1.31 | 1.38 | 5.26 |
| 4 | 2024-08-21 | 1.21 | 1.39 | 14.50 |
| 5 | 2024-05-20 | 1.20 | 1.35 | 12.97 |
| 6 | 2024-02-26 | 1.15 | 1.42 | 22.97 |
| 7 | 2023-11-20 | 1.09 | 1.29 | 18.68 |
Zoom Communications, Inc. (NASDAQ: ZM) announced its Q2 FY 2026 results, revealing a total revenue of $1,217.2 million, marking a 4.7% increase year over year. The company’s enterprise revenue saw a 7.0% rise to $730.7 million, while online revenue modestly grew by 1.4% to $486.6 million. GAAP income from operations improved significantly to $321.7 million from $202.4 million in the prior year, with GAAP net income also increasing to $358.6 million, or $1.16 per share, up from $219.0 million, or $0.70 per share.
## Dividend Payments Table
| Date | Dividend |
|---|
Non-GAAP metrics were also strong, with income from operations reaching $503.2 million and net income at $471.3 million, or $1.53 per share. The company’s cash position remains robust with $7.8 billion in reserves, and free cash flow surged to $508.0 million. Customer growth continued, particularly among those contributing over $100,000, which grew by 8.7%.
For Q3 FY 2026, Zoom expects revenue between $1.210 billion and $1.215 billion and non-GAAP diluted EPS between $1.42 and $1.44. Full-year guidance anticipates revenue between $4.825 billion and $4.835 billion, with non-GAAP income from operations projected between $1.905 billion and $1.915 billion, and free cash flow expected to be between $1.740 billion and $1.780 billion.
Over the past eight quarters, the company has consistently surpassed EPS estimates, indicating robust financial performance and effective management expectations. The trend in reported EPS shows a clear upward trajectory from 1.29 in November 2023 to 1.53 in August 2025. This growth reflects a steady improvement in the company’s profitability.
