What Can Make Zoom Stock A Buy?

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The Enterprise segment could change how you see Zoom Communications (ZM) stock. You probably still think of Zoom as a video-meeting app whose best growth is behind it. The company’s overall sales fit that picture, with total revenue rising 4.9% in fiscal Q2 2027. On its August 25, 2026 call, however, management called Enterprise the main story behind the pickup in Zoom’s growth. Those two views point in different directions. So how big has Zoom’s Enterprise business become?

Most Of Zoom’s Revenue Now Comes From Enterprise

Zoom’s Enterprise business is growing faster than the company as a whole. The segment made up 62% of revenue in fiscal Q2 2027, up 2 points from a year earlier. Management said Enterprise revenue rose 7.8% that quarter, marking its fastest rate in three years.

Management tied the speed-up to the company’s AI products and customer experience software. Annual recurring revenue for Zoom Phone is growing in the teens, and Zoom CX’s annual recurring revenue is growing at a high double-digit rate. QXO, a large North American distributor of building products, chose Zoom Phone for roughly 8,000 employees, together with Zoom Contact Center.

Is Zoom’s Online Business Holding Steady?

The segment is holding steady, but no better than that. After earlier expecting slight growth, management now expects Online, Zoom’s other business, to be flat in fiscal 2027. Management tied the change to an industry-wide shift it saw in Q2, as people move from search to AI to discover products.

Online customers are not canceling any faster, though. Average monthly churn in the Online segment was 2.9% in fiscal Q2, in line with a year earlier. Management said two rounds of price rises, roughly 6% in all, brought no real change in churn either.

A flat Online business matters because the usual worry about Zoom is its slow overall growth. Management expects revenue growth of 3.9% at the midpoint for fiscal Q3 2027, which would be slower than the 4.9% growth in fiscal Q2. Yet management raised its full-year revenue outlook to 4.5% growth at the midpoint, saying the higher outlook assumes Enterprise revenue growing faster than expected, partly offset by flat Online growth. With Online flat, Enterprise gains reach Zoom’s total, but Online adds no growth of its own.

What Could Slow Zoom’s Enterprise Growth?

Enterprise’s growth rate does not show existing customers spending more. Zoom’s net dollar expansion rate for Enterprise customers, a measure of what they spend against a year earlier, was 99% over the twelve months to fiscal Q2. That figure is up 1 point from a year before, so Enterprise growth appears to come from new customers. Management also said the loss of one white-label deal, which took about 60 basis points off Enterprise growth in Q2, will weigh a touch more in the second half.

With Online expected flat, Zoom’s growth comes from Enterprise alone, so any slowdown there reaches the total directly. Enterprise revenue growth is the figure to watch when Zoom reports fiscal Q3 2027 results, expected in November 2026.

Does This Mean You Should Act On ZM?

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