# Zoom Communications (ZM) Q2 2026 Financial Results Summary
San Jose, California – August 21, 2025 – Zoom Communications, Inc. (NASDAQ: ZM) reported its financial results for the second quarter of fiscal year 2026, which ended on July 31, 2025.
## Financial Highlights:
– **Total Revenue:**
– Revenue for Q2 of FY 2026 was **$1,217.2 million**, reflecting a **4.7% increase** year over year.
– When adjusted for foreign currency impacts, revenue increased by **4.4%** in constant currency to **$1,213.6 million**.
– **Enterprise revenue** was **$730.7 million**, up **7.0%** year over year.
– **Online revenue** reached **$486.6 million**, increasing by **1.4%** year over year.
– **Income from Operations:**
– **GAAP income from operations** stood at **$321.7 million**, compared to **$202.4 million** in Q2 FY 2025.
– **Non-GAAP income from operations** was **$503.2 million**, a rise from **$455.5 million** in the same quarter last fiscal year.
– **GAAP operating margin** was **26.4%**, while **non-GAAP operating margin** was **41.3%**.
– **Net Income & Earnings per Share (EPS):**
– **GAAP net income** for the quarter reached **$358.6 million**, or **$1.16 per share**, an increase from **$219.0 million**, or **$0.70 per share**, year over year.
– **Non-GAAP net income** was **$471.3 million**, or **$1.53 per share**, compared to **$436.4 million**, or **$1.39 per share**, in Q2 FY 2025.
– **Cash Position:**
– As of July 31, 2025, cash, cash equivalents, and marketable securities totaled **$7.8 billion**.
– **Cash Flow:**
– **Net cash provided by operating activities** for Q2 was **$515.9 million**, compared to **$449.3 million** in the previous year.
– **Free cash flow** was **$508.0 million**, a significant increase from **$365.1 million** year over year.
– **Customer Metrics:**
– The number of customers contributing over **$100,000** in trailing 12 months revenue increased by **8.7%**, totaling **4,274 customers**.
– The net dollar expansion rate for Enterprise customers was **98%**.
– **Online average monthly churn** remained stable at **2.9%**, showing no change year over year.
– **74.9%** of total Online Monthly Recurring Revenue (MRR) came from Online customers with a continuous term of service of at least **16 months**, up **50 basis points** year over year.
## Share Repurchase Activity:
– During Q2, the company repurchased approximately **6.0 million shares** of common stock, bringing the total shares repurchased under the current plan to **27.4 million**.
## Financial Outlook:
– **Third Quarter FY 2026 Guidance:**
– Total revenue is expected to be between **$1.210 billion and $1.215 billion**.
– Non-GAAP income from operations is anticipated to range from **$465.0 million to $470.0 million**.
– Non-GAAP diluted EPS is projected to be between **$1.42 and $1.44** with approximately **307 million** weighted average shares outstanding.
– **Full Fiscal Year 2026 Guidance:**
– Total revenue is expected between **$4.825 billion and $4.835 billion**.
– Non-GAAP income from operations is projected between **$1.905 billion and $1.915 billion**.
– Free cash flow is expected between **$1.740 billion and $1.780 billion** with diluted EPS expected to range from **$5.81 to $5.84**.
This summary covers the essential financial metrics and performance indicators from Zoom Communications’ Q2 FY 2026 financial results.
| Three Months Ended July | Six Months Ended July | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenue | $1,217,227 | $1,162,520 | $2,391,942 | $2,303,754 |
| Cost of revenue | 273,165 | 285,089 | 551,567 | 558,391 |
| Gross profit | 944,062 | 877,431 | 1,840,375 | 1,745,363 |
| Operating expenses: | ||||
| Research and development | 206,447 | 206,756 | 411,863 | 412,314 |
| Sales and marketing | 338,995 | 358,770 | 685,965 | 706,778 |
| General and administrative | 76,885 | 109,535 | 179,220 | 220,879 |
| Total operating expenses | 622,327 | 675,061 | 1,277,048 | 1,339,971 |
| Income from operations | 321,735 | 202,370 | 563,327 | 405,392 |
| Gains on strategic investments, net | 45,056 | 3,107 | 31,437 | 20,461 |
| Other income, net | 81,371 | 87,412 | 169,163 | 159,000 |
| Income before provision for income taxes | 448,162 | 292,889 | 763,927 | 584,853 |
| Provision for income taxes | 89,570 | 73,874 | 150,732 | 149,530 |
| Net income | 358,592 | 219,015 | 613,195 | 435,323 |
| Net income per share: | ||||
| Basic | $1.19 | $0.71 | $2.02 | $1.41 |
| Diluted | $1.16 | $0.70 | $1.97 | $1.38 |
| Weighted-average shares used in computing net income per share: | ||||
| Basic | 301,779,114 | 309,137,807 | 303,354,835 | 308,921,610 |
| Diluted | 308,224,372 | 314,027,192 | 310,515,069 | 314,696,351 |
| As of | July 31, 2025 | January 31, 2025 |
|---|---|---|
| Assets -unaudited | ||
| Current assets: | ||
| Cash and cash equivalents | $1,198,576 | $1,349,380 |
| Marketable securities | 6,580,073 | 6,442,329 |
| Accounts receivable, net | 516,799 | 495,228 |
| Deferred contract acquisition costs, current | 177,498 | 188,358 |
| Prepaid expenses and other current assets | 190,260 | 200,679 |
| Total current assets | 8,663,206 | 8,675,974 |
| Deferred contract acquisition costs, noncurrent | 124,313 | 123,464 |
| Property and equipment, net | 301,457 | 330,475 |
| Operating lease right-of-use assets | 46,831 | 55,900 |
| Strategic investments | 647,908 | 591,481 |
| Goodwill | 307,295 | 307,295 |
| Deferred tax assets | 804,772 | 749,759 |
| Other assets, noncurrent | 148,281 | 154,073 |
| Total assets | $11,044,063 | $10,988,421 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $11,619 | $8,345 |
| Accrued expenses and other current liabilities | 471,017 | 558,562 |
| Deferred revenue, current | 1,465,044 | 1,336,387 |
| Total current liabilities | 1,947,680 | 1,903,294 |
| Deferred revenue, noncurrent | 14,233 | 17,274 |
| Operating lease liabilities, noncurrent | 32,015 | 37,406 |
| Other liabilities, noncurrent | 100,058 | 95,363 |
| Total liabilities | 2,093,986 | 2,053,337 |
| Stockholders’ equity: | ||
| Common stock | 299 | 305 |
| Additional paid-in capital | 4,537,542 | 5,130,271 |
| Accumulated other comprehensive (loss) income | -477 | 4,990 |
| Retained earnings | 4,412,713 | 3,799,518 |
| Total stockholders’ equity | 8,950,077 | 8,935,084 |
| Total liabilities and stockholders’ equity | $11,044,063 | $10,988,421 |
