Zoom Stock Falls Despite Q2 Earnings Beat

Zoom Video Communications reported mixed fiscal second-quarter results on August 25, 2026, that beat analyst expectations on the top and bottom lines but included a weaker-than-expected outlook for the current quarter, sending its stock sharply lower in after-hours and premarket trading. The company's shares fell more than 8% in extended trading on Tuesday and dropped approximately 6% in premarket activity on Wednesday, retreating from a recent high near $101.

For the quarter ended July 31, Zoom posted adjusted earnings per share of $1.55, surpassing the consensus estimate of $1.48. Revenue rose 4.9% year-over-year to $1.28 billion, slightly above the $1.27 billion forecast. The enterprise segment was a key highlight, with revenue growing 7.8% to $787.5 million, marking its fastest growth rate in three years. The company also noted significant traction in its artificial intelligence products, with Zoom Virtual Agent customer count surging 256% year-over-year.

Despite the quarterly beat, investor focus shifted to the forward guidance. For the fiscal third quarter, Zoom projected revenue between $1.275 billion and $1.28 billion, with adjusted EPS of $1.46 to $1.48. This fell short...