Core Insights - Cloud-based telephony adoption is accelerating as enterprises seek unified platforms for voice, video, and collaboration, with Zoom Communications emerging as a key beneficiary through Zoom Phone [1] - Zoom Phone is evolving into a core layer of enterprise infrastructure, integrating AI-powered features and simplifying administration, positioning it as a scalable alternative to legacy systems [2] - In Q2 fiscal 2026, Zoom Phone experienced mid-teens Annual Recurring Revenue growth, with significant contributions from enterprise customers [3] Revenue and Growth - Enterprise revenue reached $730.7 million in Q2, up 7% year over year, accounting for 60% of total revenue, with expectations for continued growth in Q3 [5] - The number of enterprise customers contributing over $100,000 in trailing 12-month revenues increased by 9%, now representing 32% of total revenue [3] AI Integration and User Engagement - AI integration is enhancing platform stickiness, with monthly active users of Zoom Phone's AI tools rising over 30% sequentially, indicating growing reliance on features like transcription and smart call summaries [4][9] Competitive Landscape - Zoom Communications faces increasing competition from Microsoft and Alphabet in the enterprise telephony space, with both companies targeting large accounts and offering integrated communication solutions [6] Stock Performance and Valuation - Zoom shares have appreciated 3.8% year to date, underperforming compared to the Zacks Internet – Software industry and the Zacks Computer and Technology sector [7] - The stock is currently trading at a forward 12-month Price/Sales ratio of 5.22X, compared to the industry's 5.77X, indicating a relative valuation position [11]