Zoom Video Communications shares declined 2.6% in after-hours trading following the release of its fiscal second-quarter 2027 results, which showed revenue and earnings per share above market expectations.
The company reported revenue of $1.277 billion for the quarter, exceeding the $1.269 billion consensus estimate compiled by Wall Street. Adjusted earnings per share reached $1.55, topping the $1.48 forecast. Enterprise revenue growth accelerated to 7.8% year-over-year, the fastest pace in three years, according to the filing.
Full-year guidance for fiscal 2027 was maintained at $5.085 billion to $5.095 billion in revenue and non-GAAP diluted EPS of $6.08 to $6.12. During the earnings call, CEO Eric Yuan noted a 256% year-over-year increase in customers using Zoom Virtual Agent.
Cantor Fitzgerald maintained a Neutral rating on the stock with a $104 price target, while Bank of America reinstated a Buy rating with a $130 target, both issued the day before the earnings release. The stock closed the regular session at $104.93, near the intraday high, within its 52-week range of $70.70 to $114.74.
Major U.S. equity benchmarks—the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite—ended the regular session essentially flat.
