Shares of Zoom Communications Inc (NASDAQ:ZM) tanked in early trading on Wednesday, after the company reported its fiscal second-quarter results.

Here are some key analyst takeaways:

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RBC Capital Markets: Zoom Communications reported revenue of $1.277 billion and non-GAAP earnings of $1.55 per share, above consensus estimates of $1.268 billion and $1.48 per share, respectively, Jaluria said in a note.

"Zoom’s ability to combine UCaaS, CCaaS, and AI on a single platform is increasingly resonating," with management indicating that AI adoption was accelerating customer shift away from legacy on-premises solutions, the analyst stated. He added, however, that the company guided to third-quarter revenue, non-GAAP operating margin and non-GAAP earnings below consensus estimates.

Needham: Zoom Communications reported solid quarterly results, with revenue growth of 4.7% year-on-year in constant currency terms, Reilly said. RPO (remaining performance obligation) accelerated again, "highlighting enterprise strength," with enterprise customers now representing 62% of total revenue, he added.

The analyst noted, however, that the company’s fiscal 2027 revenue guidance does not fully reflect the second-quarter beat, as online new-customer activity softened further during the quarter.

Cantor Fitzgerald: Zoom Communications delivered a strong performance in the fiscal second quarter, with Enterprise growth accelerating to an 11-quarter high of 7.8%, Blakey said.

RPO accelerated for the fourth straight quarter to 14%, "reinforcing durable product diversification, up-market momentum and AI monetization," he wrote. Online revenue grew 0.6% year-on-year, and the full-year guidance embeds "a further step-down," the analyst stated.

Rosenblatt Securities: Zoom Communications delivered a beat-and-raise quarter, with Enterprise revenue growing at the fastest rate in three years, Trebnick said. She added that the quarter reflects:

  • Reaccelerating Enterprise growth
  • Improving large-customer and RPO trends
  • Zoom CX becoming a more meaningful contributor
  • AI progressing "from engagement to paid adoption across multiple products"

Citizens JMP Securities: Zoom Communications’ stock came under pressure post the release of better-than-expected results as it had climbed 17% year to date, Walravens said. While the third-quarter guidance missed expectations, the company raised its full-year guidance, he added.

  • Revenue outlook raised from $5.080-$5.090 billion to $5.085-$5.095 billion, versus consensus of $5.090 billion
  • Non-GAAP earnings projection raised from $5.96-$6.00 per share to $6.08-$6.12 per share, higher than consensus of $6.04 per share.
  • Free cash flow guidance raised from $1.70-$1.74 billion to $1.78-$1.82 billion, higher than consensus of $1.76 billion.

KeyBanc Capital Markets: Although Zoom Communications reported higher-than-expected revenues, the beat was "lighter than usual," Ader said. The upside was driven by Enterprise customer revenue growth, which outperformed Street expectations by 150 basis points (bps) and accelerated to 7.8% year-on-year from the previous quarter’s 7.2%, he added.

Non-GAAP operating income also came in 40 bps below the midpoint of guidance, and the company reiterated its full-year non-GAAP EBIT guidance, the analyst stated. "Average online monthly churn remains elevated at 2.9%," he further wrote.

ZM Price Action: Zoom Communications shares were down 8.00% at $92.85 at the time of publication on Wednesday, according to Benzinga Pro data.

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