Zoom Video Communications Inc. (NASDAQ:ZM) raised its full-year earnings guidance after delivering second-quarter results that exceeded Wall Street expectations, driven by strong enterprise demand and efforts to reduce online churn. Shares climbed more than 5% in premarket trade Friday.
For the quarter ended July 31, the company reported adjusted earnings of $1.53 per share on revenue of $1.22 billion, beating expectations for $1.38 per share on $1.20 billion in revenue.
Enterprise customers generating over $100,000 in trailing 12-month revenue rose 8.7% year-over-year to 4,274. Remaining performance obligation (RPO) grew more than 5% to about $4 billion. Operating margin reached 41.3%, well above the 38.7% consensus.
For the third quarter, Zoom projected adjusted EPS of $1.42 to $1.44 on revenue of $1.210 billion to $1.215 billion. For fiscal 2026, adjusted EPS is expected at $5.81 to $5.84, up from its prior forecast of $5.56 to $5.59, on revenue of $4.825 billion to $4.835 billion, compared with the earlier projection of $4.8 billion to $4.81 billion.
