Zoom posts solid Q2, lifts FY26 outlook on AI expansion

Zoom Video Communications reported a solid second-quarter performance for its fiscal 2026, posting strong revenue and profit growth as it continues to expand from video conferencing into a broader unified communications platform with a heavier emphasis on artificial intelligence. The company said revenue reached about $1.217 billion, adjusted earnings per share of $1.53, and a non-GAAP operating margin of 26.4%, up markedly from a year earlier. Free cash flow on a non-GAAP basis climbed to $508 million, and net income on a GAAP basis rose to $358.6 million. The results surpassed both internal guidance and Wall Street expectations, reinforcing Zoom’s trajectory toward higher profitability and cash generation while it scales AI-enabled features across its platform.

The quarterly performance reflected momentum across Zoom’s core segments. Enterprise revenue totaled $730.7 million, up 7% year over year, helped by a growing base of large accounts. The number of enterprise customers contributing more than $100,000 in trailing 12-month revenue rose to 4,274, an 8.7% increase from a year ago. The Online segment, which serves smaller businesses and individual users, delivered $486.6...