Zoom Video Q2 Profit and Revenue Rise
Zoom Video Communications(NASDAQ:ZM) reported results for the fiscal second quarter ended July 31, 2025, with revenue up 4.7% year over year to $1.22 billion and non-GAAP diluted EPS of $1.53, both exceeding non-GAAP guidance. Free cash flow rose 39% year over year to $508 million (41.7% margin); the company ended the quarter with $7.8 billion in cash and marketable securities and repurchased 6 million shares for $463 million. The company also accelerated share buybacks and raised full-year revenue and profitability outlooks for fiscal 2026 while highlighting rapid AI adoption and strong enterprise traction.
Monthly active users of AI Companion, Zoom Video Communications’ integrated artificial intelligence (AI) suite, increased over fourfold year over year, now in the millions, with usage broadening to meeting preparation, post-meeting task management, and new AI-supported features for Zoom Phone and Zoom Docs. AI-driven tools contributed to large-scale enterprise wins, such as a deployment of nearly 60,000 seats at a Fortune 200 U.S. technology company and measurable cost reductions for customers like SecureONE through Virtual Agent 2.0.
Accelerating user adoption of AI features strengthens customer stickiness, increases cross-sell opportunities, and positions Zoom Video Communications to lead future enterprise collaboration software innovation.
Source Fool.com
