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Investing.com -- Zoom Video Communications hiked its full-year earnings guidance Thursday after reporting second-quarter results that beat Wall Street estimates, driven by strength in its enterprise business and efforts to rein in online churn.
Zoom Video Communications Inc (NASDAQ:ZM) jumped more than 5% premarket trading Friday.
For the three months ended Jul. 31, the company reported adjusted Q2 earnings per share of $1.53 on revenue of $1.22 billion, beating estimates for EPS $1.38 on revenue of $1.2B.
Enterprise customers, which make up almost a third of revenue, contributing more than $100,000 in trailing 12-month revenue, were up 8.7% to 4,274 from the same quarter last fiscal year.
RPO, or remaining performance obligation, increased over 5% year over year to approximately $4 billion.
Zoom’s operating margin for the quarter of 41.3% was also above the consensus of 38.7%.
Mizuho (NYSE:MFG) analysts said these were "good FQ2 results with better enterprise trends expected" in the second half.
"We remain optimistic that top line can reaccelerate to MSD%+ given opportunity from emerging products (CCaaS, Workvivo, AI Companion), while the more aggressive approach to buybacks ($463M in Q2) is a positive for shares in our view," they noted.
For Q3, the company guided adjusted EPS in a range of $1.42 to $1.44 on revenue of $1.210B and $1.215B.
For fiscal 2026, the company sees adjusted EPS in a range of $5.81 and $5.84 on revenue between $4.825B and $4.835B. That was above the prior forecast for adjusted EPS in a range of $5.56 to $5.59 on revenue between $4.8B $4.81B.
(Yasin Ebrahim contributed to this report.)