Core Insights - Zoom Communications is evolving from a pandemic-focused video meeting platform to a diversified collaboration provider, offering solutions like Zoom Phone, Contact Center, Workvivo, and AI-driven Zoom Workplace [1] Financial Performance - In Q2 of fiscal 2026, Zoom reported revenue of $873.97 million from the Americas, a 4.6% year-over-year increase; EMEAC contributed $200 million, up 5.7%; and Asia Pacific generated $148.3 million, growing 4.2% [2] - The Zacks Consensus Estimates for Q3 fiscal 2026 revenues are $870.53 million for the Americas (up 3%), $194.32 million for EMEAC (up 4%), and $149 million for Asia Pacific (up 3.2%) [4] - Zoom shares have appreciated 2.4% year to date, while the Zacks Internet – Software industry and the Zacks Computer and Technology sector have increased 26.5% and 22.4%, respectively [6] Strategic Initiatives - Zoom is expanding its market reach through new distribution channels and strategic partnerships, including collaborations with AWS and PwC, to enhance enterprise penetration globally [3][8] - The company is focusing on AI-driven product enhancements, such as AI Companion 3.0, to resonate with multinational and hybrid workforces [3][8] Competitive Landscape - Competitors like Microsoft and Cisco are also expanding their global reach, with Microsoft leveraging its Office 365 ecosystem and Cisco investing in local data centers for Webex [5] - Zoom differentiates itself through AI-driven innovation and platform flexibility, which is crucial for building global momentum [5] Valuation Metrics - Zoom's stock is currently trading at a forward 12-month Price/Sales ratio of 5.14X, compared to the industry's 6.01X, indicating a relatively favorable valuation [10] - The Zacks Consensus Estimate for Q3 fiscal 2026 earnings is $1.42 per share, reflecting a year-over-year improvement of 2.9% [13]

Group 1 - Cisco is hosting its annual AI Collaboration and Customer Experience event, WebexOne, from September 28 to October 1, 2025, in San Diego, featuring luminary customers and partners [1][2] - The event will focus on trending topics such as generative AI, customer experience, and conferencing technology, showcasing Cisco's latest innovations and strategies [2][5] - Attendees will have access to over 200 hours of learning through 82 classes and labs, along with 100+ breakout sessions featuring top customers and Cisco speakers [3] Group 2 - More than 50 Webex customers and partners, including Conagra Brands and Kennedy Space Center, will discuss their collaboration with Cisco to enhance customer experiences using AI [5] - Notable speakers include Ryan Reynolds, who will deliver the closing keynote on creative leadership and innovation, and Deepu Talla from NVIDIA, who will discuss the future of AI [5] - Cisco executives will present the company's vision for AI and customer experience, highlighting the integration of new technologies with Cisco's product portfolio [5]

387972 02: Employees of Cisco Systems Inc. talk with each other April 17, 2001 on the company's sprawling San Jose, California complex. Cisco Systems Inc. plans to cut 8,500 jobs in light of forcasted low third-quarter profits. The company is the largest manufacture of technology that helps power the internet. (Photos by Dan Krauss/Newsmakers) Getty Images Cisco Systems Inc. is scheduled to report earnings after Wednesday's close. The stock hit a record high of $82/share in March 2000 and is currently tradi ...

Core Viewpoint - Cisco Systems is set to report its fiscal fourth quarter earnings, with expectations of strong performance driven by its AI initiatives and partnerships, particularly with Nvidia [1][6][16] Group 1: Earnings Expectations - Cisco's Q4 sales are projected to increase by 7% to $14.6 billion compared to $13.64 billion in the same quarter last year [6] - Q4 earnings per share (EPS) are expected to rise by 11% to $0.97, up from $0.87 in the prior period [6] - For fiscal 2025, total sales are anticipated to grow by 5% to $56.59 billion, with annual EPS expected to increase over 1% to $3.79 [7] Group 2: AI Initiatives - Cisco's unified silicon architecture, "Silicon One," is designed to support high-performance networking for AI and machine learning workloads [2] - The company offers a range of AI solutions, including AI infrastructure, AgenticOps for IT automation, and AI-enhanced Webex collaboration tools [9][10][11] - Cisco's partnership with Nvidia includes being the only third-party silicon vendor in Nvidia's Spectrum-X Ethernet platform, the first Ethernet networking platform for AI [2] Group 3: Stock Performance and Valuation - Cisco's stock has increased nearly 60% over the past year, reaching a 52-week high of $72 per share [3] - The stock trades at 17.9 times forward earnings, which is a 26% discount compared to the S&P 500's 24.4 times forward earnings multiple [13] - Cisco has exceeded earnings expectations for 31 consecutive quarters, with an average earnings surprise of 3.94% over the last four quarters [7][8]

Core Viewpoint - Zoom Communications, Inc. has demonstrated strong stock performance, gaining 7.6% over the past three months, outperforming both the Zacks Computer and Technology sector and the S&P 500 index [1][2] Group 1: AI-Driven Innovation - The company's growth is significantly driven by its AI innovations, particularly the adoption of Zoom AI Companion, which has seen nearly 40% quarter-over-quarter growth [2][5] - Zoom has begun monetizing its AI offerings with the launch of Custom AI Companion, receiving positive feedback from Global 2000 trial customers [6] Group 2: Enterprise Segment Growth - Zoom's enterprise revenues grew approximately 6% year-over-year, accounting for 60% of total revenues, an increase of two percentage points from the previous year [7] - The number of customers contributing over $100,000 in trailing 12-month revenues increased by 8% year-over-year, representing 32% of total revenues in the fiscal first quarter [7] Group 3: Positive Financial Outlook - For the second quarter of fiscal 2026, Zoom expects total revenues between $1.195 billion and $1.2 billion, with non-GAAP diluted earnings per share anticipated between $1.36 and $1.37 [9] - The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.2 billion, indicating a year-over-year growth of 2.96% [10] Group 4: Competitive Positioning - Zoom is positioning itself as an AI-first platform to differentiate from competitors like Cisco's Webex and Microsoft's Teams [4][12] - Recent enterprise wins, such as the Boston Celtics upgrading to Zoom Workplace Enterprise Plus, highlight the company's growing adoption in large enterprises [8]

Industry Overview - Unified Communication as a Service (UCaaS) is becoming a leading network standard, driven by the cloud business model, which offers an affordable, scalable, and easily deployable solution for unified collaboration communication, particularly popular among large enterprises by 2025 [1] - The UCaaS market is projected to grow from $56.14 billion in 2025 to $175.83 billion by 2030, with a compound annual growth rate (CAGR) of 25.65% during the forecast period [6] Technological Advancements - The UCaaS market will see deeper AI integration in 2025 to enhance communication, a shift towards mobile-first platforms, increased adoption of Web Real-Time Communication (WebRTC), and a focus on security and compliance [2] - AI-powered capabilities such as virtual assistants, automated chatbots, and predictive intelligence will improve communication efficiency and enhance the remote work experience [3] - The introduction of 5G networks is transforming video and audio conferencing by enabling fast, low-latency communication, with advancements like 5G network slicing improving video call quality [4] Key Players - RingCentral (RNG), Cisco Systems (CSCO), and Crexendo (CXDO) are key players positioned to benefit from the growing UCaaS market [6] - RingCentral has been recognized as a Leader in the 2024 Gartner Magic Quadrant for UCaaS for ten consecutive years, bolstered by strategic partnerships with companies like AT&T and Cox Communications [8][9] - Cisco has also been recognized as a Leader in the 2024 Gartner Magic Quadrant for UCaaS for the sixth consecutive year, highlighting its commitment to innovation through its Webex platform [11] - Crexendo has expanded its presence in the UCaaS sector and won the Unified Communications Excellence Award for the fourth time, showcasing its leadership and innovation [15] Earnings Estimates - The Zacks Consensus Estimate for RingCentral's 2025 earnings is $4.20 per share, which has increased by a penny in the past 30 days [10] - Cisco's 2025 earnings estimate is $3.72 per share, reflecting a 1.92% increase over the past 30 days [14] - Crexendo's 2025 earnings estimate is 28 cents per share, which has risen by 12% over the past 30 days [17]