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Zoom Communications reports fiscal Q2 2027 results amid 4.4% revenue growth

Zoom Communications reported fiscal second-quarter results for the period ended July 31, 2026. The company showed a $4.9B revenue base growing 4.4% YoY, with 77.0% gross margins and 39.0% net margins, leaving the market focused on whether the latest quarter changes Zoom's slow-growth profile.

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The story

Zoom released its second fiscal quarter results ended July 31, 2026, on Aug. 25, 2026, through GlobeNewswire. Zoom Communications (ZM) reported revenue of $4.9B, up 4.4% YoY, alongside 77.0% gross margins, 39.0% net margins, and $6.18 diluted EPS.

Key disclosures include the full quarterly income statement, operating metrics, free-cash-flow performance, and fiscal-year guidance. Management's comments on enterprise demand, AI-related products, and the pace of revenue growth will determine whether this print represents stabilization or simply extends Zoom's existing low-growth pattern.

Our read · Tue, Aug 25

ZM’s strong profitability and $4.9B revenue base are balanced by 4.4% YoY growth, so the earnings release leaves the risk centered on evidence of reacceleration rather than margins alone.

Why. The trade hinges on growth, not profitability: 77.0% gross margins and 39.0% net margins provide a substantial earnings base, but the available $4.9B revenue figure is growing only 4.4% YoY. With the newly reported quarter’s figures and guidance not supplied, the evidence does not support a directional call until the release establishes whether enterprise demand or new products are changing that trajectory.

Both cases

The case it holdsZoom’s 77.0% gross margins, 39.0% net margins, and $6.18 diluted EPS provide financial capacity for the company to convert any improvement in enterprise or AI demand into earnings.
The case it breaksThe concrete growth hook remains weak at 4.4% YoY on a $4.9B revenue base, and the available data gives no evidence yet that the latest quarter accelerated.

What could change this view: A directional read is invalidated by the missing quarterly figures and guidance; a materially different growth or outlook profile in the full filing would change the setup.

Zoom Communications stock page →
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About this report

Reported by GlobeNewswire as Zoom Communications Reports Financial Results for the Second Quarter of Fiscal Year 2027, . Who answers for this

The only report in this record. Closes are licensed end-of-day data from Databento; the move after a story is its first close against the close before it. How this is decided →

Kept as written · your side, if you take one, is graded privately against licensed closes after 10 trading days · nothing here is advice · How the Wire is made →