Zoom Communications Inc (NASDAQ:ZM) stock fell 1.91% (As on August 26, 11:24:04 AM UTC-4, Source: Google Finance) after the company’s earnings and revenue beats in its fiscal 2026 second quarter. Enterprise revenues, which account for 60% of total revenues, increased 7% year over year to $730.7 million. Online revenues, which account for 40% of total revenues, increased 1.4% year over year to $486.6 million. Zoom ended the quarter with 4,274 customers contributing more than $100,000 in trailing 12-month revenue, up 8.7% year-over-year, while the company reported a 12-month dollar expansion rate for enterprise customers of 98%. Online average monthly churn came in at 2.9%, flat year-over-year. Net cash provided by operating activities was $515.9 million, up from $449.3 million in the second quarter of fiscal year 2025 and Zoom had cash, cash equivalents and marketable securities of $7.8 billion as of the end of July. The company has announced several new AI-driven features, notably Zoom Virtual Agent being integrated with Zoom Phone.

Further, the number of Enterprise customers at the end of the fiscal first quarter was approximately 184,000. In the second quarter, the percentage of total Online MRR pertaining to Online customers with a continued term of service of at least 16 months was 74.9%, which increased 50 basis points (bps) year over year. Business highlights in the quarter included the July 9 launch of new agent-based artificial intelligence capabilities for Zoom’s platform that help users orchestrate tasks to save time during their workday. The release included a new Custom AI Companion add-on that can connect to more than 16 third-party apps without leaving Zoom.

ZM in the second quarter of FY26 has reported the adjusted earnings per share of $1.53, beating the analysts’ estimates for the adjusted earnings per share by 11.68%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 4.7 percent to $1.22 billion in the second quarter of FY26, beating the analysts’ estimates for revenue by 1.66%. Non-GAAP operating income rose 10.5% to $503.2 million year over year. The operating margin came in at 41.3% compared with the year-ago quarter’s operating margin of 39.2%.

For its fiscal 2026 third quarter, Zoom expects adjusted earnings per share of $1.42 to $1.44 on revenue of $1.207 billion to $1.212 billion. Analysts had been expecting $1.39 per share and revenue of $1.21 billion.

For the full fiscal year, the company expects adjusted earnings of $5.81 to $5.84 on revenue of $4.817 billion to $4.827 billion. Both figures were ahead of the $5.61 per share and revenue of $4.81 billion expected by analysts.