Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: $1.217 billion for QQ2 2026, up 4.71% YoY and 3.62% QoQ.
Gross Profit: $944.062 million; Gross Margin: 77.56% (Gross Profit Margin YoY: +7.59%, QoQ: +5.33%).
Operating Income: $321.735 million; Operating Margin: 26.43% (YoY margin expansion ~+58.98% in absolute dollars; QoQ +33.17%).
EBITDA: $321.735 million; EBITDA Margin: 26.43% (EBITDA aligns with Operating Income given limited other adjustments in data).
Total Other Income/Expenses: $126.427 million; Income Before Tax: $448.1...
Financial Highlights
Revenue: $1.217 billion for QQ2 2026, up 4.71% YoY and 3.62% QoQ.
Gross Profit: $944.062 million; Gross Margin: 77.56% (Gross Profit Margin YoY: +7.59%, QoQ: +5.33%).
Operating Income: $321.735 million; Operating Margin: 26.43% (YoY margin expansion ~+58.98% in absolute dollars; QoQ +33.17%).
EBITDA: $321.735 million; EBITDA Margin: 26.43% (EBITDA aligns with Operating Income given limited other adjustments in data).
Total Other Income/Expenses: $126.427 million; Income Before Tax: $448.162 million; Tax Expense: $89.57 million;
Net Income: $358.592 million; Net Margin: 29.46%; EPS (GAAP): $1.19; Diluted EPS: $1.16; Weighted Avg Shares Outstanding: 301.779 million (basic) / 308.224 million (diluted).
Liquidity and Balance Sheet: Cash and Cash Equivalents $1.199B; Short-Term Investments $6.580B; Cash & ST Investments $7.779B; Total Current Assets $8.663B; Total Assets $11.045B; Total Liabilities $2.094B; Stockholders’ Equity $8.950B; Net Debt: -$1.167B (net cash).
Cash Flow: Operating cash flow figures are not disclosed in the provided data; stock-based compensation $189.461 million is a non-cash expense component reflected in the income statement.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.22B |
4.71% |
3.62% |
| Gross Profit |
944.06M |
7.59% |
5.33% |
| Operating Income |
321.74M |
58.98% |
33.17% |
| Net Income |
358.59M |
63.73% |
40.84% |
| EPS |
1.19 |
67.61% |
42.51% |
Management Commentary
Transcript not provided in the data set. As a result, specific management quotes cannot be cited. The following themes are anticipated based on Zoom’s QQ2 2026 results and common investor anxieties in enterprise UCaaS:
- Strategy/Product: Emphasis on expanding the Zoom platform (Meetings, Phone, Chat, Events, API integration) and AI-enabled features to drive cross-sell and improve user experience.
- Operations: Focus on operating leverage and R&D investment to sustain product leadership while managing non-GAAP style cost controls.
- Market Conditions: Continued demand for cloud-based collaboration tools with competitive intensity from large cloud incumbents (MS Teams, Webex, Google Workspace) and potential pricing and renewal cycle pressures.
Note: No direct quotes available from the transcript in the provided data set.
Forward Guidance
There were no explicit numeric guidance figures released for QQ3 or full-year 2026 in the provided data. Given Zoom’s QQ2 performance, the company appears positioned to continue leveraging operating leverage as revenue scales and as it invests in AI-enabled capabilities and platform integrations. Qualitative indicators suggest ongoing emphasis on:
- Customer retention and expansion across Zoom Meetings, Zoom Phone, and Zoom Chat, with higher-margin products likely receiving incremental investment.
- Enterprise go-to-market initiatives and international expansion to sustain moderate growth in a成熟 UCaaS market.
Investment thesis and achievability:
- Base case: Modest revenue growth (low-to-mid single digits) with continued margin expansion as the company scales. The strong gross margin (77.56%) provides a favorable path to higher EBITDA in future quarters if marketing and R&D spend remain disciplined.
- Upside: AI-driven features, better cross-sell within the Zoom platform, and potential monetization of events and developer ecosystems (OnZoom, Zoom AppsMarketplace) could lift ARPU and retention. Large liquidity supports investment in product, partnerships, and potential tuck-in acquisitions.
- Risks to monitor: competitive pressure and customer concentration in large enterprises; macro headwinds affecting IT spend; potential delays in AI feature adoption; and any shifts in renewal terms or seat-based pricing.
Key items to monitor include: 1) ARR growth and net revenue retention, 2) progression of AI-enabled product adoption, 3) cash conversion and free cash flow, and 4) changes in deferred revenue and its impact on future revenue realization.