Core Insights - Zoom Communications' employee experience platform Workvivo is expected to drive enterprise expansion, with a 142% year-over-year increase in customers contributing over $100,000 in Annual Recurring Revenue, reaching 168 in Q2 of fiscal 2026 [1][8] - The acquisition of Workvivo is set to enhance Zoom's presence in employee engagement and internal communications, as enterprises increasingly recognize the importance of integrated employee platforms for hybrid work and retention strategies [2] - Integration with Zoom Workplace is anticipated to facilitate cross-selling opportunities, increasing customer lifetime value, while expansion into mid-market accounts is expected to create new revenue streams [3] Financial Performance - The Zacks Consensus Estimate for enterprise revenues in Q3 of fiscal 2026 is projected at $730.97 million, reflecting a 4.6% increase from the previous year, with enterprise revenues constituting 60% of total revenues [4][8] - Zoom's shares have increased by 2.3% year to date, underperforming the Zacks Internet – Software industry's return of 18.3% and the Zacks Computer and Technology sector's increase of 11.8% [6] Competitive Landscape - Microsoft poses a significant challenge to Zoom with its Viva suite, which is integrated with Microsoft Teams and Office 365, enhancing adoption among enterprises already using Microsoft's ecosystem [5] - Alphabet is also expanding its collaboration and employee engagement offerings through Google Workspace, leveraging cloud and AI capabilities [5] - Zoom's opportunity lies in cross-selling through Workplace and differentiating itself as enterprises seek unified platforms outside of Microsoft and Alphabet's ecosystems [5] Valuation Metrics - Zoom's stock is currently trading at a forward 12-month Price/Sales ratio of 5.15X, compared to the industry's 5.62X, indicating a relative valuation position [10] - The Zacks Consensus Estimate for Q3 fiscal 2026 earnings is $1.42 per share, reflecting a year-over-year improvement of 2.9% [12]