Core Viewpoint - Zoom Communications reported a 4.4% year-over-year increase in revenue for Q3 of fiscal year 2026, reaching $1.23 billion, surpassing analyst expectations of $1.21 billion [1] - The adjusted earnings per share were $1.52, also exceeding the forecast of $1.44 [1] - The company announced a new $1 billion stock buyback program [1] Financial Performance - Revenue for the third quarter was $1.23 billion, a 4.4% increase compared to the previous year [1] - Adjusted earnings per share were reported at $1.52, higher than the expected $1.44 [1] User Metrics - The average monthly churn rate for individual and small business users was 2.7%, down from 2.9% in the previous quarter [1] Future Guidance - For the upcoming quarter, the company expects revenue to be approximately $1.23 billion and adjusted earnings per share around $1.49, compared to market expectations of $1.45 [1]

Core Insights - Goldman Sachs reiterated a "Neutral" rating and a target price of $87 for Zoom Video Communications (ZM.US) following the company's second-quarter earnings report that exceeded expectations [1] - The report highlighted strong growth in AI applications, with monthly active users of AI Companion increasing fourfold year-over-year [1] - The company reported a 4.7% year-over-year revenue growth, surpassing market expectations by 1.6%, marking the largest revenue beat in four quarters [1] Financial Performance - The non-GAAP operating margin was 41%, exceeding market expectations by 260 basis points, while free cash flow also exceeded expectations by 29% [1] - Gross margin reached 76.38%, and the PEG ratio was 0.88, indicating attractive valuation relative to growth potential [1] - The financial health score of the company is rated as "excellent," suggesting the stock may be undervalued based on fair value analysis [1] Business Segments - Enterprise business revenue grew by 7% year-over-year, outperforming the previous quarter's growth of 5.9% and last year's 3.5% [2] - The net expansion rate remained stable at 98%, although the online churn rate increased to 2.9% quarter-over-quarter, remaining flat year-over-year [2] - Zoom cautiously raised its fiscal 2026 revenue guidance by 0.1%, excluding approximately $20 million in excess [2] Future Outlook - The company anticipates a slowdown in revenue growth for the third quarter due to a high comparison base and reduced earnings from professional services, with a projected acceleration in the fourth quarter driven by strong enterprise business momentum [2] - Analysts maintain a neutral stance on the stock, reflecting a balanced view of Zoom's financial performance and its ability to consistently exceed earnings expectations in recent quarters [2]