Zoom Video Communications Inc. is set to release fiscal second-quarter 2027 results after Tuesday's market close, with investors scrutinizing the company's ability to monetize artificial intelligence investments amid slowing growth.
Analysts project earnings of $1.48 per share on revenue of $1.27 billion, representing a 4.1% year-over-year increase but a sequential decline in profitability from the prior quarter. First-quarter results showed $1.24 billion in revenue, a 5.5% year-over-year gain, and a 9% earnings beat, though the net expansion rate improved to 99%. The forecasted $1.48 EPS would mark a drop from the $1.55 reported in Q1.
The company's shares, currently trading at $104.83, are valued near the high end of their 52-week range with a forward P/E ratio of approximately 16.9. Out of 30 analysts covering the stock, 18 rate it a buy, 11 hold, and one recommends selling, with a mean price target of $116.80 implying roughly 11% upside potential.
Cantor Fitzgerald analyst Thomas Blakey emphasized that sustained enterprise demand and measurable AI-driven monetization would be required to justify the stock's valuation. Blakey's checks indicated only nascent usage and monetization of AI features during the quarter, including workflow orchestration across Zoom Workplace, Zoom Phone, and Zoom CX with custom AI agents.
Zoom's $1.27 billion stake in AI startup Anthropic, valued based on a May regulatory filing, adds another layer of investor focus ahead of the earnings report. The company's ability to translate AI investments into measurable revenue growth remains a key question as it navigates a competitive enterprise software landscape.
