"Zoom (Nasdaq:ZM) reports fiscal Q3 2026 results after the close, with expectations centered on modest mid-single-digit growth and continued margin stability. The company enters the print with strong momentum from its Q2 beat, revenue +4.7 percent YoY and EPS well above guidance, and a heightened investor focus on AI monetization, Contact Center pipeline velocity, and the durability of Enterprise demand in a dynamic macro."
"AI Companion engagement and pathway to monetization- Management highlighted 4x growth in monthly active AI users and rising usage across pre-meeting prep, post-meeting tasks, Zoom Phone call summaries, and Zoom Docs content generation. Last quarter emphasized that Custom AI Companion and agentic automation will be central to FY27 monetization, with FY26 revenue contribution limited but pipeline expanding."
"Contact Center momentum and cloud displacement wins- Zoom Contact Center continues to deliver high double-digit growth, with nine of the top ten recent deals displacing incumbent cloud providers. AI-native capabilities, including Virtual Agent 2.0 and agent-assist workflows, are driving competitive differentiation. Investors will watch whether sequential bookings remain elevated and if new CCaaS innovations (auto-dialer, departmental expansions) broaden deal sizes."
Zoom enters fiscal Q3 2026 with expectations of modest mid-single-digit revenue growth and continued margin stability after a strong Q2 beat (revenue +4.7% YoY and EPS above guidance). Q3 revenue is estimated at roughly 3% YoY, with FY26 revenue growth near 3.5% and EPS growth above 6%, reflecting a high-margin, low-growth profile. AI Companion usage has grown 4x monthly active users, with increasing use across meeting prep, call summaries, and Docs. Zoom Contact Center shows high double-digit growth and cloud displacement wins, while Zoom Phone maintains mid-teens ARR growth and acts as a platform gateway.
Read at 24/7 Wall St.
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