Filing Flows › Zoom Communications (ZM) › Q2 FY27
Zoom Communications (ZM) Q2 FY27 earnings results (second quarter fiscal 2027)
10-Q filed Aug 26, 2026
Zoom Communications (ZM) reported revenue of $1.3B for the second quarter fiscal 2027 (Q2 FY27), +5% from a year earlier and +3% from the quarter before. Operating margin was 24.6%, net earnings $1.5B (120.8% of revenue).
Zoom Communications, Q2 FY27: revenue $1.3B (+5% year over year), operating margin 24.6%, net earnings $1.5B, operating cash flow $495M. The chart follows the revenue to costs, profit and cash.
| Q2 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.3B | +3% | +5% |
| Gross profit | $985M | +2% | +4% |
| Operating profit | $314M | +1% | -2% |
| Net earnings | $1.5B | +262% | +330% |
| Operating cash flow | $495M | -5% | -4% |
| Free cash flow | $472M | — | -7% |
What changed
Revenue was $1.3B in Q2 FY27, up 5% year over year and up 3% from the previous quarter.
Gross margin was 77.2%, down 0.4 points from Q2 FY26. Operating profit was $0.31B, a 24.6% margin (down 1.8 points year over year). Operating profit fell $0.01B even though revenue rose $0.06B versus Q2 FY26, so costs grew faster than sales. Operating expenses grew 8% against revenue growth of 5%. The fastest-growing cost line was General & admin (+28%). Net earnings were $1.5B, up 330% year over year. The effective tax rate was 22.7%. Non-operating items added $1.7B, 84% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.49B (down 4% year over year), 32% of net earnings. Non-cash charges added back $0.03B of depreciation and amortization and $0.18B of share-based compensation. Working capital and other items used $1.3B. After purchases of property and equipment ($0.02B), free cash flow as the company reports it was $0.47B.
Questions
What was Zoom Communications' revenue in the second quarter fiscal 2027?
Zoom Communications (ZM) reported revenue of $1.3B for the second quarter fiscal 2027 (Q2 FY27), +5% from a year earlier and +3% from the quarter before.
Was Zoom Communications profitable in the second quarter fiscal 2027?
Operating profit was $314M (24.6% of revenue) and net earnings $1.5B.