Zoom Video Communications delivered a solid QQ2 2026 performance, characterized by healthy revenue growth, meaningful margin expansion and a robust liquidity position. Revenue of $1.218 billion reflected a 4.7% year-over-year increase and a 3.6% sequential uptick, supported by a combination of ongoing demand for cloud-based unified communications and product mix that favors higher-margin offerings. Gross profit reached $944.1 million, yielding a gross margin of 77.56%, while EBITDA stood at $321.7 million with an EBITDA margin of 26.43% and net income of $358.6 million (net margin ~29.46%), underscoring sustained operating leverage.
The balance sheet remains exceptionally strong, with substantial liquidity and a net cash position. Zoom reported cash and short-term investments of about $7.78 billion and a net debt position of approximately -$1.17 billion, providing ample capacity to fund product development (including AI-enabled features), sales execution, and potential strategic acquisitions or partnerships. Deferred revenue of $1.465 billion confirms strong customer demand and efficient revenue recognition in a subscription-oriented business, while still implying future revenue realization. Management commentary (where available) emphasized continued customer retention and expanded adoption of Zoom’s full platform (Meetings, Phone, Chat, Events, and APIs).
Looking ahead, investors should focus on growth sustainability (despite a modest top-line trajectory versus rapid-growth peers), operating leverage, cash generation potential, and how Zoom expands its AI-enabled portfolio and cross-sell across its product suite. Risks include intensifying competition from large cloud incumbents, pricing pressure in enterprise deals, and macro slowing that could affect enterprise IT budgets. Overall, the QQ2 2026 result reinforces Zoom as a high-quality, cash-generative UCaaS platform with healthy long-term optionality, albeit with a measured near-term growth trajectory.