TLDR
- Zoom beat Q2 earnings with adjusted EPS of $1.55 vs. $1.48 expected, and revenue of $1.28 billion vs. $1.27 billion expected.
- The stock dropped around 6% in pre-market Wednesday despite the beat, as Q3 guidance missed expectations.
- Q3 revenue guidance of $1.275–$1.28 billion came in at or below analyst estimates.
- Zoom’s 0.31% stake in Anthropic, valued at $1.27 billion in April, could be worth $6–$7 billion if Anthropic IPOs at a $2 trillion valuation.
- Enterprise revenue grew 7.8% year-over-year, its fastest pace in three years, and Zoom Virtual Agent customers surged 256% year-over-year.
Zoom Video (ZM) stock was sliding roughly 6% in pre-market trading Wednesday after the company posted a solid fiscal Q2 2027 earnings beat that still wasn’t enough to satisfy investors looking for more.
The stock was trading around $94.60 in pre-market, down from a close near $100.92. Heading into the print, ZM had been up roughly 22% year-to-date, so expectations were running high.
Adjusted EPS came in at $1.55, up from $1.53 a year ago and ahead of the $1.48 consensus. Revenue rose 4.9% year-over-year to $1.28 billion, just above the $1.27 billion Wall Street had penciled in.
ZOOM $ZM Q2’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.28B (Est. $1.27B) 🟢; +4.9% YoY
🔹 Adj. EPS: $1.55 (Est. $1.48) 🟢; +1% YoY
🔹 Enterprise Revenue: $787.5M; +7.8% YoY
🔹 Non-GAAP Op Margin: 40.0%FY27 Guide:
🔹 Revenue: $5.09B-$5.10B (Est. $5.09B) 🟡
🔹 Adj. EPS: $6.08-$6.12… pic.twitter.com/cxVFTElom3— Wall St Engine (@wallstengine) August 25, 2026
The headline numbers were fine. The problem was what came next.
Q3 guidance called for revenue of $1.275–$1.28 billion, with adjusted EPS between $1.46 and $1.48. Analysts had been expecting $1.50 in EPS and $1.282 billion in revenue. The full-year FY2027 revenue outlook was bumped up only modestly to $5.085–$5.095 billion, broadly in line with what the market already expected.
That kind of “guidance raise that isn’t really a raise” tends to hurt stocks that have already priced in optimism, and ZM was no exception.
Enterprise Growth and AI Adoption
There were real positives buried in the report. Enterprise revenue grew 7.8% year-over-year, which is the fastest rate in three years. Zoom Virtual Agent customer count jumped 256% year-over-year, pointing to real traction in the company’s AI product push.
CEO Eric Yuan highlighted the AI momentum on the earnings call, though the Anthropic stake, arguably the most watched wildcard for investors right now, did not come up directly. Zoom may provide an update in a pending securities filing.
The Anthropic Factor
Zoom posted a $1.6 billion gain on strategic investments in the quarter, most of which is tied to its estimated 0.31% stake in Anthropic. The position was valued at $1.27 billion in April, when Anthropic’s implied valuation sat around $380 billion.
Anthropic is now expected to IPO at a $2 trillion valuation by October, according to the Financial Times. At that level, Zoom’s stake could be worth between $6 billion and $7 billion. Those Anthropic shares would likely be locked up for several months post-IPO.
Zoom also ended the quarter with $7.2 billion in cash and liquid instruments and very little debt. BofA analyst Matt Bullock, who reinstated coverage with a Buy and a $130 price target, said “return of capital is a central part of our bull thesis.”
The broader market offered little help Tuesday, with the Nasdaq slipping 0.2% and the S&P 500 nearly flat. Enterprise software peer Intuit reported results the same evening, keeping pressure on the sector.
Insider share sales of approximately $95.7 million over the past twelve months added another layer of caution for investors.
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