Aug 25, 2026 earnings call — Zoom pushes AI-first platform expansion
Zoom reported Q2 revenue of $1.28 billion, beating guidance and raising full-year revenue to $5.085–$5.095 billion.
Revenue $1.3B (est $1.3B) · EPS $1.55 (est $1.48) · Next-quarter revenue outlook $1.3B–$1.3B
Key quotes
"The Enterprise acceleration was driven by our focused execution against our three priorities of elevating workplace with AI, scaling AI-first customer experience, and driving growth in new AI products."
"Look, we are really encouraged with our Phone results. You saw us highlight a lot of the things about it continues to be in teens growth."
"We ended the quarter with $7.2 billion in cash, cash equivalents and marketable securities, excluding restricted cash."
Analyst Q&A 14
Phone demand and outlook
Q (Matthew Bullock · BofA): The analyst asked about Phone demand, customer buying behavior in Q2, and how to model Phone for the rest of the year.
A: Management said Phone grew in the teens, with strong takeouts, vertical and international strength, and that Phone is becoming a pathway to AI monetization. They noted the guide is a constant currency beat-and-raise and reminded investors of a white label deal headwind.
"I think increasingly it is going to be a great pathway to other AI monetization." — Michelle Chang (CFO)
Large deals and gross margin
Q (Samik Chatterjee · JPMorgan): The analyst asked what products are driving larger seven-figure deals and how management plans to manage rising compute costs that affected gross margin.
A: Management said large deals are driven by Contact Center strength and AI, displacing big competitors, and channel helped. On gross margins they said teams held best-in-class margins, will optimize as AI usage spikes, and rely on a federated AI approach and Zoom SLM to hit long-term margin targets.
"When it comes to gross margins, look, I think the teams have done a beautiful job in holding gross margins best in class." — Michelle Chang (CFO)
AI consumption pricing and online churn
Q (James Fish · Piper Sandler): The analyst asked about balancing consumption/usage pricing for AI products and whether online still has room for price increases given low churn after the March price hike.
A: Management said they use a mix of per-user, usage-based, outcome-based, or hybrids depending on market and customer needs. On online, they said the ~6% price increases did not materially change churn, the base remains stable, and they will consider price moves when sensible.
"But broadly, our approach is to match what makes sense relative to market and competitive dynamics and ultimately what is in the customer's best interest." — Michelle Chang (CFO)
Phone runway and Contact Center new customers
Q (Peter Levine · Evercore): The analyst asked how much runway remains for Phone within Zoom's Workplace base and whether Contact Center wins were net new customers or upsells from existing customers.
A: Management said Phone is still growing in the teens and winning share in both cloud and on-prem, with many takeouts. For Contact Center they said some deals come from Phone and some are pure Contact Center new wins, with about 3 of top 10 Contact Center deals including Phone.
"So look, I think we have been growing in the teens for a while and clearly gaining share." — Michelle Chang (CFO)
Enterprise growth vs NDR
Q (Elizabeth Elliott · Morgan Stanley): The analyst asked whether the Enterprise acceleration was from new logos, larger initial lands, or expansion, and which products could push NDR sustainably above 100%.
A: Management said NDR (NDE) is improving toward 99% and the Enterprise growth comes from product diversification, AI monetization, moving upmarket and channel. They said both new logos and expansion contribute, with Phone and Contact Center and AI monetization helping bring net new customers and expansions.
"From an NDE perspective, look, I think we've said for a long time that the goal is obviously to move that up in a 100 and beyond." — Michelle Chang (CFO)
Common Room impact
Q (Samad Samana · Jefferies): The analyst asked how Common Room affects guidance, its strategic fit with Revenue Accelerator, and its role in adding front-office functionality.
A: Management said Common Room accelerates ZRA and sales-focused AI features and integrates quickly with Zoom's AI and engineering. They said Common Room is early-stage, was Zoom's largest acquisition at $250 million, and will be de minimis to revenue against a $5 billion base but promising for future growth; the acquisition also lowered margins initially.
"While Common Room was Zoom's largest acquisition to date at $250 million, these are early-stage companies, and so they are going to be de minimis to the impact of our revenue to a $5 billion base." — Michelle Chang (CFO)
Contact Center competition
Q (Sitikantha Panigrahi · Mizuho): The analyst asked how competitive dynamics in Contact Center are changing with OpenAI and CRM vendors entering, and Zoom's win rate versus new entrants.
A: Management said many players signal a growing market and that Zoom's federated AI, broad data access across Meetings/Phone/CC, strong ASR/TTS and enterprise trust give Zoom a unique position to win. They expressed high confidence in execution versus competitors due to product breadth and AI tech.
"I think a federated AI approach puts us in a unique position." — Eric Yuan (CEO)
ZVA bundling vs standalone
Q (Jackson Ader · KeyBanc): The analyst asked how often virtual agents (ZVA) are sold standalone versus bundled with Contact Center, and whether Contact Center is land-and-expand or big one-time lands.
A: Management said ZVA can be sold bundled with Contact Center or sold separately and customers deploy it from Meetings, Phone, or Contact Center paths. They gave stats: in top 10 ZVA deals, 6 of 10 came with Contact Center; top 10 Contact Center deals were mostly Elite and some included ZVA, indicating multiple growth paths and land-and-expand motions.
"In our top 10 ZVA deals, 6 of 10 came with Contact Center." — Michelle Chang (CFO)
Customer data and AI stickiness
Q (Ryan MacWilliams · Wells Fargo): The analyst asked how leading AI customers build use cases on Zoom data and whether that data gravity increases enterprise stickiness.
A: Management said they expose data APIs (MCP) and the context layer so customers can use third-party models or Zoom AI (ZoomMate). They said Zoom AI can search Zoom and third-party content to create agents and workflows, and both data APIs and Zoom AI services help customers leverage their data.
"We expose our data API through MCP, and also the customer can leverage our AI service as well." — Eric Yuan (CEO)
Outcome and consumption pricing
Q (Aleksandr Zukin · Wolfe): The analyst asked how new consumption and outcome-based pricing contribute to revenue and when that will affect NDR and revenue, and asked about voice opportunities.
A: Management said outcome/usage pricing is mainly for new AI products like ZVA; they support both models and expect outcome-based pricing to contribute as they gain ZVA market share. On voice, they highlighted strong ASR, forthcoming TTS, APIs and a full speech AI opportunity tied to consumption models.
"By the way, Alex, speaking of outcome-based pricing, we also look at other services as well, like ZRA and BrightHire as well, and we look at all those vertical AI products, right?" — Eric Yuan (CEO)
Custom avatar setup and quality
Q (Patrick Walravens · Citizens): The analyst asked what causes differences in avatar voice quality and what banks must do to train avatars to sound very human.
A: Management said the avatar setup is easy (about 2 minutes) and advised being as natural as possible during setup; they also said humans review avatar output. They noted the AI avatar tech improves quickly and newer versions produce better results.
"Then of course we have humans in the loop and making sure we review what the avatar says." — Michelle Chang (CFO)
Contact Center milestones and CapEx
Q (Tyler Radke · Citi): The analyst asked for a Contact Center ARR milestone update and whether Contact Center drove the Enterprise raise, plus what's behind the lower CapEx guidance.
A: Management said they will give Contact Center milestones periodically and that CX is one of several drivers of Enterprise inflection (product diversification, AI, moving upmarket, channel). On CapEx they said they extended a data center asset life by 2 years, which improved free cash flow by about $40 million and reduced CapEx guidance.
"We took a decision that benefited our free cash flow raise by about $40 million to simply extend in one of our data centers the useful life of the asset by 2 years." — Michelle Chang (CFO)
Workplace seat growth and Common Room size
Q (Allan M. Verkhovski · BTIG): The analyst asked trends in Enterprise workplace seat growth by customer size, drivers of confidence behind the ~ $30 million Enterprise revenue raise, and whether Common Room contributes about $10 million or less to guidance.
A: Management said online churn remains low (~2.9%) and Enterprise dollar churn is down year-over-year. They repeated the same durable Enterprise drivers (product diversification, AI, upmarket, channel) and said Common Room was folded into the revenue guide but they would not quantify its contribution, calling it de minimis versus a $5 billion base.
"But it certainly was folded into the revenue guide." — Michelle Chang (CFO)
Workvivo cross-sell and cautious guide
Q (William Power · Baird): The analyst asked the cross-sell opportunity for Workvivo and how to reconcile strong Enterprise RPO/bookings with the modest full-year revenue raise.
A: Management said Workvivo often brings non-Zoom customers into Zoom and the new Workvivo HQ AI product improves cross-sell opportunities. On the guide they said the raise reflects a constant-currency beat and raise, Enterprise inflection and durable drivers, but they tempered online near-term expectations and were prudent given top-of-funnel dynamics.
"Quite often those customers are not a Zoom customer at all, but they deployed the Workvivo." — Eric Yuan (CEO)