Zoom Communications — FQ2 FY2027 Earnings Preview
FQ2 FY2027 = Calendar May–Jul 2026 (quarter ending July 31, 2026) ·
Reports Thursday, August 20, 2026 AMC · Prepared May 21, 2026
(post FY27 Q1 print + FY27 raise on Q1 call)
Earnings Date
August 20, 2026
After Market Close · 91 days out
FY27 Q2 Guide Rev
$1.265–1.270B
+4.1% YoY (mid) · brackets cons $1,265.6M
FY27 Q2 Guide EPS
$1.45 – $1.47
vs cons $1.47 · thin cushion
FY27 Mgmt vs Street
+$10M
FY27 guide $5.085B vs cons ~$5.075B
Q1 FY27 Print (5/21)
Rev $1,239M · EPS $1.45
+5.5% YoY rev · beat $1.41 cons by +2.8%
NDE Rate (Q1 FY27)
99%
First sequential uptick in 6+ quarters (98% → 99%)
Enterprise YoY (Q1)
+7.2%
Fastest in ~2 years; durable driver
AI Companion Paid MAUs
+184% YoY
MyNotes hit 1.5M MAUs
Executive Summary
Zoom reports FQ2 FY2027 (May–Jul 2026) on Thursday, August 20, 2026 AMC. Tonight's FY27 Q1 print
delivered the cleanest beat-and-raise of the cycle: revenue +5.5% YoY (fastest in ~2 years),
Enterprise +7.2% YoY, NDE rate ticked up to 99% (first sequential uptick in 6+ quarters),
and AI Companion paid MAUs +184% YoY. Management raised the FY27 revenue guide $15M to
$5.080–5.090B (a "true-up the beat" raise) and lifted EPS guide $0.19 to $5.96–$6.00
on a fresh $1B incremental buyback authorization.
Management contrarianism flag: The Q2 revenue guide of $1.265–1.270B
brackets the FMP consensus of $1,265.6M — a tighter "kiss" than FY26 quarterly setups
(Q4 FY26 guide was $1,162-$1,167M vs cons $1,234M). CFO Michelle Chang is compressing the beat-and-raise
gap as AI monetization matures — a deliberate calibration that should make the +50-220 bps revenue beats
of the past 12 quarters harder to sustain at the same magnitude.
Bull case: Revenue growth re-accelerated from +2.9% (FY26 Q1) → +5.5%
(FY27 Q1), a +260 bps re-acceleration in 4 quarters. Enterprise momentum is durable
(+7.2% YoY in Q1, +120 bps vs FY26 Q4). Custom AI Companion launched at Enterprise Connect 2026 (March 10) —
the first paid-AI SKU pure-play. Zoom Phone in mid-teens growth range. Contact Center (ZCC) crossed $100M
ARR in late Q1. Buyback program now $1B+ ahead of dilution. SoTP cushion from $7.8B cash + Anthropic stake
(~$2–4B mark).
Bear case: EPS beat magnitude is clearly compressing — prior 8Q avg
+14.5% → L4Q +5.6% on rising interest income headwind, SBC → cash comp shift, and rising share count.
Q2 EPS guide cushion is the thinnest of any quarter in FY26. AI revenue still not disclosed as a discrete
line — Aug 20 Q&A will press. Online 6% price hike (mid-March) may elevate churn in Q2/Q3. FCF held at
$1.70–$1.74B despite EPS raise (data-center capex headwind ~$75M). MSFT Teams remains the structural
competitive overhang; MSFT 365 price hike July 1 is the offsetting tailwind.
What's at stake: Aug 20 print needs revenue ≥ $1.282B (+1.2% above
guide high) and Enterprise YoY ≥ +7.0% to validate the re-acceleration thesis. Watch for FY27 raise of
$10–$20M, NDE rate holding or expanding 99%+, AI revenue disclosure, ZCC ARR update, and Phone seat adds.
FY27 Q2 Guidance vs Consensus + FY27 Raised Guide
| Metric | Guide Low | Midpoint | Guide High | Consensus | Our Est. |
|---|---|---|---|---|---|
| Q2 Total Revenue ($M) | $1,265 | $1,267.5 | $1,270 | $1,265.6 | $1,272 (+1.2% beat est) |
| Q2 Total Revenue YoY % | +3.9% | +4.1% | +4.3% | +4.0% | +4.5% |
| Q2 Non-GAAP Op Margin % | ~39.9% | ~40.0% | ~40.2% | ~39.7% | ~40.5% (typical beat) |
| Q2 Non-GAAP EPS | $1.45 | $1.46 | $1.47 | $1.47 | $1.49 |
| FY27 Total Revenue ($M) RAISED | $5,080 | $5,085 | $5,090 | ~$5,075 | $5,100 (~$10–25M raise) |
| FY27 Total Revenue YoY % | +4.3% | +4.4% | +4.5% | +4.2% | +4.7% |
| FY27 Non-GAAP EPS RAISED | $5.96 | $5.98 | $6.00 | $5.88 | $6.05 |
| FY27 FCF ($B) HELD | $1.70 | $1.72 | $1.74 | — | $1.72 (in line) |
FY27 raise is "true-up the Q1 beat" — revenue floor +$15M, ceiling +$15M. EPS raise of +$0.19 is bigger than revenue lift, reflecting $1B incremental buyback. FCF held — Chang previously flagged ~$75M of incremental data-center capex for FY27 ("post-pandemic refreshment cycle"). Source: ZM Q1 FY27 8-K (5/21/2026); FMP consensus.
Total Revenue: Guide vs Actual (10-Q Track Record + Open FY27 Q2)
8/8 revenue beats vs guide midpoint. Average beat: +1.18% (modal ~$15M). Q4 FY26 was the largest beat (+5.9% — atypical due to depressed guide). Recent trend is steady — no signs of compression. The print bar to beat: a normal-cadence print sits at ~$1,282M (+1.2% on $1,267.5M mid). Source: Daloopa series 154161/154162 (guide low/high) and 154197 (actual), shifted forward one calendar quarter to pair guide-with-actual.
Historical 9-Quarter Metrics
| Metric | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|---|
| Total Revenue ($M) | $1,141.2 | $1,162.5 | $1,177.5 | $1,184.1 | $1,174.7 | $1,217.2 | $1,229.8 | $1,247.0 | $1,239.0* |
| Revenue YoY % | +3.2% | +2.1% | +3.6% | +3.3% | +2.9% | +4.7% | +4.4% | +5.3% | +5.5%* |
| Enterprise Revenue ($M) | $665.7 | $682.8 | $698.9 | $706.8 | $704.7 | $730.7 | $741.4 | $757.3 | $755* |
| Enterprise YoY % | +5.3% | +3.5% | +5.8% | +5.9% | +5.9% | +7.0% | +6.1% | +7.1% | +7.2%* |
| Online Revenue ($M) | $475.5 | $479.7 | $478.7 | $477.3 | $470.0 | $486.6 | $488.4 | $489.7 | $484* |
| Online YoY % | +0.1% | -0.2% | -2.4% | -3.0% | -1.2% | +1.4% | +2.0% | +2.6% | +3.0%* |
| Non-GAAP Op Margin | 40.0% | 39.2% | 38.9% | 39.5% | 39.8% | 41.3% | 41.2% | 39.3% | 41.0%* |
| Op Margin YoY (bps) | — | — | — | — | -20 | +210 | +230 | -20 | +120 |
| RPO Within 1 Year % | 59% | 60% | 61% | 59% | 61% | 61% | 60% | 57% | 60%* |
* = Q1 FY27 figures from FMP / 8-K (5/21/2026); Daloopa entries pending. Enterprise YoY trajectory: Q1 FY26 5.9% → Q1 FY27 7.2% = +130 bps re-acceleration YoY. Revenue YoY: 2.9% → 5.5% = +260 bps. Online YoY: -1.2% → +3.0% = +420 bps reversal (SMB stabilization). Op margin compares same-quarter YoY — Q1 FY27 41.0% vs Q1 FY26 39.8% = +120 bps YoY.
5-Year Annual View — Trajectory
| Metric | FY23A | FY24A | FY25A | FY26A | FY27E (Raised Guide) |
|---|---|---|---|---|---|
| Total Revenue | $4.39B | $4.53B (+3.1%) | $4.67B (+3.1%) | $4.87B (+4.4%) | $5.08B (+4.4%) |
| Non-GAAP Op Margin | 37.6% | 38.4% (+80 bps) | 39.4% (+100 bps) | 40.3% (+90 bps) | 40.6% (+30 bps) |
| Non-GAAP EPS | $4.36 | $4.88 (+11.9%) | $5.31 (+8.8%) | $5.66 (+6.6%) | $5.98 (+5.7%) |
Revenue growth stabilized at +3.1% (FY24/FY25) before re-accelerating to +4.4% (FY26 + FY27E). Op margin expanded +300 bps over 4 years (37.6% → 40.6%); FY27 guides only +30 bps additional. EPS growth decelerating (11.9% → 8.8% → 6.6% → 5.7%) on tougher comps + share-count headwind partially offset by buyback. Source: Daloopa series 154197, 2619772, 2180315 + FY27 raised guide.
Peer Earnings Calendar (Relative to ZM 2026-08-20)
| Ticker | Date | Δ vs ZM | Timing | Read-Through |
|---|---|---|---|---|
| GOOGL | 2026-07-22 | -29 days | Before | Workspace + Gemini productivity read |
| MSFT | 2026-07-29 | -22 days | Before | Teams, M365 Copilot — competitive overhang |
| NET | 2026-07-30 | -21 days | Before | Cloudflare Calls; consumption proxy |
| RNG | 2026-08-04 | -16 days | Before | Direct UCaaS peer; price/seat dynamic |
| EGHT | 2026-08-04 | -16 days | Before | 8×8 UCaaS peer |
| TWLO | 2026-08-06 | -14 days | Before | CPaaS / Customer experience adjacency |
| AVPT | 2026-08-06 | -14 days | Before | M365 management; competitive read |
| CSCO | 2026-08-12 | -8 days | Before | Webex direct peer; enterprise collab tone |
| NICE | 2026-08-13 | -7 days | Before | Contact Center peer (ZCC comp) |
| ZM | 2026-08-20 | Print day | — | FY27 Q2 |
All major peers report BEFORE ZM. MSFT/GOOGL set the productivity/Copilot tone. CSCO/RNG/EGHT/NICE provide direct UCaaS + Contact Center reads. AVPT M365-management tone is the leading indicator for whether Teams/Zoom share-shift narrative changes. Source: FMP earnings calendar.
News Flow Since FY26 Q4 Print (2026-02-26 → 2026-05-21)
| Date | Headline | Source | Category | Commentary |
|---|---|---|---|---|
| 2026-02-24 | Zoom Virtual Agent 3.0 launched (next-gen agentic AI for contact centers) | Zoom Press | Product | Pre-Q4 product cadence; ZVA traction story |
| 2026-02-26 | FY26 Q4 print: Rev $1.247B (+5.3%); FY27 guide $5.065-$5.075B; $1B buyback authorized | Zoom 8-K | Earnings/Capital | Most confident tone in 2+ years; capital return inflection |
| 2026-03-10 | Enterprise Connect 2026: AI Companion 3.0 GA, AI Docs/Sheets/Slides, Custom AI Companion, ZAI Services APIs | Zoom Press / Computerworld | Product | Direct shot at MSFT/GOOG productivity; first paid-AI SKU |
| 2026-03-12 | Workplace 7.0 UI refresh + persona-based customization (rolling out Q1 FY27) | Zoom Press | Product | Major UX overhaul supports Workplace retention |
| 2026-03-15 | Online consumer/SMB 6% price hike effective mid-March | Zoom / various | Pricing | Could elevate Q2/Q3 churn; first online price hike in 18 months |
| 2026-04-02 | Workvivo AI launches (employee experience AI) | Zoom Press / Forrester | Product | Forrester named Workvivo a Leader in EXP Wave 2026 |
| 2026-04-09 | Anthropic MCP integration GA for Zoom AI Companion | Zoom / Anthropic blog | Partnerships | Federated AI architecture; reduces dep on single LLM provider |
| 2026-04-22 | ZCC (Contact Center) crosses $100M ARR milestone | Zoom blog / analyst notes | Customers | Validates ZCC as 3rd growth pillar after Phone |
| 2026-05-05 | Zoom Phone wins multi-thousand-seat deal at large US bank (Cisco displacement) | Industry press | Customers | Phone seat momentum continues mid-teens growth |
| 2026-05-08 | Anthropic stake re-valuation discussion: ZM holdings worth ~$2-4B | Bloomberg / SemiAnalysis | Capital/SoTP | Hidden asset value floor for SoTP analysis |
| 2026-05-12 | Wells Fargo upgrades ZM to Overweight, PT $115 | Wells Fargo / Bloomberg | Sell-side | Cites Custom AI Companion + Phone momentum |
| 2026-05-14 | Microsoft 365 enterprise price hike announced effective July 1 | Microsoft | Macro/Competitive | Indirect tailwind for ZM vs Teams cost equation |
| 2026-05-19 | Multiple analyst Q1 previews flag NDE rate as key watch item | Various | Sell-side | NDE has been 98% for 6+ quarters; uptick = expansion |
| 2026-05-21 | Q1 FY27 print: Rev $1.239B (+5.5% YoY), EPS $1.45, NDE 99%, AI Companion +184% MAU, $1B add'l buyback | Zoom 8-K | Earnings/Capital | Clean beat + FY27 raise + buyback authorization |
Net read: Strongly positive product cycle (AI Companion 3.0, ZAI Services, Workvivo AI, Anthropic MCP, Custom AI Companion). Capital return inflection (buyback +$1B). MSFT 365 price hike on 7/1 is a near-term competitive tailwind. Online price hike (3/15) is the one watch item for Q2/Q3 churn.
Key Catalysts
Bull Catalysts
- Custom AI Companion monetization — first paid-AI SKU traction at Aug 20 print
- Zoom Phone seat adds continuing mid-teens growth; Cisco displacement deals
- ZCC ARR scaling past $100M with ZVA Voice attach rate disclosure
- Enterprise YoY holding/expanding +7.0% (Q1 FY27 was +7.2%)
- NDE rate sustaining at 99% or expanding (first uptick in 6+ quarters)
- AI office suite (Docs/Sheets/Slides) GA + enterprise customer wins
- FY27 raise of $20M+ at Aug 20 print (vs $15M Q1 raise)
- MSFT 365 price hike July 1 — TCO tailwind into the Q2 print
Bear Risks
- Q2 EPS guide cushion is thinnest of FY26 — beat magnitude compressing
- Online 6% price hike (3/15) elevates Q2/Q3 churn risk
- AI revenue still not a discrete disclosed line — narrative without numbers
- FCF held flat despite EPS raise — $75M data-center capex headwind
- MSFT Teams structural competitive overhang persists
- Interest income headwind on EPS as rates compress
- Buyback rate of $1B+ now baked into EPS — diminishing returns
- Enterprise mix sliding above 60% reduces blended margin
What to Watch on August 20
1. Total Revenue:
Beat to ≥$1.282B (+1.2% above $1,267.5M mid) is cadence-consistent. Anything below $1.275B breaks pattern.
2. FY27 raise:
$15-25M raise extends the beat-and-raise streak. Maintaining $5,085M mid is the bear case.
3. Enterprise YoY:
Holds +7.0% = re-acceleration thesis intact. Drift to +6.0% = momentum stalling.
4. NDE rate:
99% sustained = floor in (first sequential uptick in 6+ quarters in Q1). 98% reversion is negative.
5. AI Companion paid MAU growth:
Watch for triple-digit YoY growth to continue (Q1 was +184%). Custom AI Companion paid seats disclosure.
6. ZCC ARR + ZVA attach rate:
Q1 crossed $100M ARR — watch for $120-$130M run-rate update + attach rate.
7. Zoom Phone seat adds:
Mid-teens growth range maintained. Cisco displacement deal commentary.
8. Online revenue trajectory:
Q1 FY27 was +3.0% YoY (best in 4 quarters). Watch whether 3/15 price hike causes Q2 backslide.
9. Op margin:
Q2 actual vs ~40% guide; FY27 commentary on whether 40.6% is conservative or ceiling. Q2 FY26 41.3% sets a tough comp.
10. FY27 FCF commentary:
Held at $1.70-$1.74B — watch for whether Aug 20 raises FCF or maintains data-center capex narrative.