Zoom Video Communications Inc. shares declined 5.8% in pre-market trading on Wednesday after the company posted mixed results for its fiscal second quarter of 2027 and provided cautious guidance for the current quarter.
The video conferencing provider reported revenue of $1.277 billion for the quarter, exceeding the $1.27 billion consensus estimate compiled by Wall Street. Adjusted earnings per share came in at $1.55, topping the $1.48 forecast. Despite the upside surprise, Zoom’s outlook for the third quarter fell short of expectations, with revenue guidance set between $1.275 billion and $1.28 billion.
The company also raised its full-year revenue forecast for fiscal 2027 to a range of $5.085 billion to $5.095 billion, a modest increase from prior guidance. Enterprise revenue grew 7.8% year-over-year, the fastest pace in three years, while the Zoom Virtual Agent customer base surged 256% as demand for AI-driven solutions accelerated.
CEO Eric Yuan highlighted the company’s progress in artificial intelligence adoption, noting that enterprise customers are increasingly integrating AI tools into their workflows. However, the weaker-than-expected third-quarter revenue guidance overshadowed the positive financial metrics. Bank of America reinstated coverage on Zoom with a Buy rating and a $130 price target, citing signs of a durable recovery in growth.
The stock had gained roughly 22% year-to-date heading into the earnings release. In broader market movement, the Nasdaq Composite slipped 0.2%, the S&P 500 was nearly flat at -0.1%, and the Dow edged up 0.1%. Peer Intuit also reported results on the same evening, though its market reaction was not specified.
Insider share sales totaled approximately $95.7 million over the past twelve months, adding to market caution around the stock.
