Zoom's second-quarter earnings call spent surprisingly little time on meetings. Executives talked instead about phone systems, contact centres, sales intelligence and employee platforms, the parts of the business built to convince customers they're buying more than a video licence. The Q2 FY27 numbers suggest that argument is landing.
Total revenue grew 4.9% year over year to $1.28 billion, beating the top end of guidance. The more telling number is Enterprise revenue, up 7.8% year over year and now 62% of the total business, its fastest growth rate in three years. That builds on the 7.2% Enterprise growth Zoom reported in Q1, and it's coming alongside a run of customer wins that look less like meeting-room upgrades and more like outright vendor displacement.
Enterprise Wins Point to UCaaS-CCaaS Consolidation
A handful of this quarter's customer wins sit squarely inside the UCaaS-CCaaS convergence trend UC Today covered in depth around this year's Gartner Magic Quadrant for UCaaS.
QXO, a North American distributor of building products, moved roughly 8,000 employees onto Zoom Phone company-wide alongside Zoom Contact Center, unifying its UCaaS and CCaaS systems and integrating with Microsoft Teams and its CRM. A major US cybersecurity company made a similar move, replacing multiple vendors with Zoom Contact Center after already standardising on Zoom Video. A large US wealth manager upgraded to Zoom Workplace Enterprise Premier with a wall-to-wall Zoom Phone rollout, again replacing incumbent vendors outright.
Not every win was about displacement. One of the largest US tech companies renewed Zoom Workplace with a $1.9 million ARR expansion, and Zoom credited part of that to its ability to coexist with Google Workspace rather than replace it. Louise Newbury-Smith, Zoom's Head of UKI, made a version of this same argument to UC Today earlier this year, describing openness as Zoom's competitive answer to Microsoft and Google rather than an attempt to out-build either ecosystem:
"Our differentiator is how much of an open platform Zoom truly is. We can complement Microsoft and Google. We can support the customer's endpoint, whatever they choose that to be."
The scale of these deals shows up on the balance sheet too. Zoom's RPO, covering both billed and unbilled contracts, grew 14% year over year to approximately $4.5 billion, with non-current RPO up 25%, evidence that customers are committing to longer, multi-product agreements rather than single-product renewals.
AI usage is shifting from summaries to workflows
Licensed Monthly Active Users of Zoom's AI features in Workplace grew 125% year over year in Q2, slower than the 184% growth in paid AI Companion users Zoom reported in Q1. The two figures aren't quite measuring the same thing: Zoom has broadened its AI branding since then with the June launch of ZoomMate, its agentic productivity layer, so the metric has shifted alongside the product.
What matters more than the growth rate is where that usage is heading. On the earnings call, Zoom described engagement "broadening from reactive communication summaries into active querying and building workflows, turning insights into action and conversations into outcomes." Zoom CTO XD Huang described the same shift in a LinkedIn post earlier this year, setting out the thinking behind the company's "C2C" strategy, short for Conversation to Completion:
