Zoom Communications shares dropped roughly 6% in pre-market trading Wednesday even after the company reported better-than-expected fiscal Q2 2027 results, as investors focused on softer forward guidance and already-elevated expectations.
For the quarter, Zoom posted adjusted earnings per share of $1.55, up from $1.53 a year earlier and above the $1.48 consensus estimate. Revenue rose 4.9% year-over-year to $1.28 billion, narrowly beating the $1.27 billion Wall Street forecast. Enterprise revenue grew 7.8% year-over-year to $787.5 million, the fastest pace in three years, while Zoom Virtual Agent customers surged 256% year-over-year.
Despite those strengths, the stock moved from a close near $100.92 to around $94.60 in pre-market action. The decline followed Q3 guidance of $1.275 billion to $1.28 billion in revenue and adjusted EPS of $1.46 to $1.48, below analyst expectations of $1.50 in EPS and $1.282 billion in revenue. Full-year revenue guidance was raised only modestly to $5.085–$5.095 billion, essentially in line with existing estimates.
Zoom also reported a $1.6 billion gain on strategic investments, largely linked to its estimated 0.31% stake in Anthropic. That position was valued at $1.27 billion in April when Anthropic’s implied valuation was about $380 billion. With Anthropic reportedly expected to IPO at a $2 trillion valuation by October, Zoom’s stake could be worth $6 billion to $7 billion, though shares would likely be locked up for several months post-IPO.
BofA analyst Matt Bullock reinstated coverage with a Buy rating and a $130 price target, noting that return of capital is central to the bull thesis. Zoom ended the quarter with $7.2 billion in cash and liquid instruments and very little debt. The broader market offered little support, with the Nasdaq slipping 0.2% and the S&P 500 nearly flat, while enterprise software peer Intuit reported results the same evening. Insider share sales of approximately $95.7 million over the past twelve months added another layer of caution.
Technical analysts noted the post-earnings sell-off invalidated a bullish pennant pattern. The stock had rallied from a June 25 low of $82.21 after forming a double-bottom with a neckline at $94.37. Near-term support may be found at the psychological $90 level, while a longer-term rebound could retest resistance near $110 once selling pressure eases.
