How Has Zoom’s Story Changed

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Zoom Communications (ZM) stock trades at 5.7 times sales, against 3.1 for the S&P 500. Shareholders paying that premium need to know what they are buying, and Zoom has changed how it describes what it sells. On the fiscal Q3 2025 call in November 2024, management described moving Zoom from a unified communication and collaboration platform into an AI-first work platform. The pitch has since moved on again. So what does management talk up now?

Zoom Now Pitches An AI-First System Of Action

On the fiscal Q2 2027 call in August 2026, management said customers are choosing Zoom as an AI-first, integrated, multi-product system of action. The company wants to use its position in live communications to capture context and intent. It highlighted ZoomMate, launched in June, as the product that turns conversations into completed work. The word collaboration came up only twice on that call, though AI in Zoom Workplace, the collaboration suite, was one of its three priorities.

Six months after that November 2024 call, the tools themselves were still part of the pitch. On the fiscal Q1 2026 call in May 2025, management said Zoom Workplace continued to drive customers to adopt other Zoom solutions. The collaboration suite served as the way into the rest of Zoom. Those tools have not left the story. On the fiscal Q1 2027 call, management called Zoom Workplace the foundation of its system of action. The collaboration tools are now the base Zoom builds AI on, rather than the product it emphasizes.

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How Big Is Zoom's Enterprise Business Now?

Zoom's enterprise business accounted for 62% of revenue in fiscal Q2 2027. Enterprise revenue grew 7.8% from a year earlier, marking its strongest growth rate in three years. Total revenue reached $1.28 billion, up 4.9%, putting enterprise sales at about $0.79 billion for the quarter.

Management credited that speed-up to its three AI priorities: AI in Zoom Workplace, an AI-first customer experience and new AI products. Adoption of these AI tools is also spreading. Licensed monthly active users of AI features in Zoom Workplace grew 125% from a year earlier, and the customer count for Zoom Virtual Agent increased more than 250%.

Should Zoom Holders Find The New Pitch Reassuring?

So far it looks reassuring, because management credits the AI push for faster enterprise growth, and use of the AI tools is rising. Management raised its revenue forecast for fiscal 2027 to 4.5% growth at the midpoint, up from 4.1% at the start of the year. The company's backlog of billed and unbilled contracts also rose 14% to about $4.5 billion.

One concern sits in the online business, which generated the remaining revenue of about $0.49 billion in fiscal Q2 2027. Management trimmed its fiscal 2027 expectation for online revenue to flat, down from slight growth. The company also expects churn from a white label deal to weigh a touch more in the second half. Management said this churn cut about 0.6 percentage points from enterprise growth in fiscal Q2. Finally, the company forecast fiscal Q3 2027 revenue growth of 3.9% at the midpoint, a slower pace than in fiscal Q2.

For now, management is talking up its AI push and the enterprise growth it credits to it, while expecting the online business to stay flat in fiscal 2027. Enterprise revenue growth is the figure to watch when Zoom reports fiscal Q3 2027, expected on or around November 23, 2026.

Is Too Much Of Your Wealth Riding On One Stock?

What Zoom Communications's management talks about has changed, and holders are left to work out why. When one position grows into a large part of your wealth, a sharp fall can hurt your whole plan, and selling to spread the money out can bring a large tax bill. Our partner advisory firm offers a free strategy review of ways to protect a concentrated position and unwind it with less tax.

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