Zoom Video Communications, Inc. Q2 2027 Earnings Recap

Shares dropped 10.5% after Zoom’s Q2 report as investors reacted negatively to signs of deceleration and a cautious outlook despite continued AI-driven momentum. The stock move reflects underlying concerns about overall growth slowing and margin pressure, overshadowing gains in certain segments.

Key Takeaways

• Total revenue grew 4.9%, with Enterprise revenue accelerating modestly at 7.8%, marking the strongest pace in three years but still reflecting deceleration from prior quarters.
• AI-driven features saw strong adoption, with licensed monthly active users of AI features in Workplace increasing 125% year-over-year.
• Zoom Contact Center (CX) ARR maintained high double-digit growth, fueled by AI integration and record numbers of seven-figure ARR deals.
• Key customer expansions included large enterprises upgrading Zoom Workplace and Zoom Phone, consolidating vendors and integrating platforms.
• Despite segment-level progress, investors likely disappointed by cautious management outlook and the absence of clear margin expansion or broader platform growth acceleration consistent with earlier periods.