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Pandemic communications star Zoom Communications (ZM 9.98%) stock, um (I’m trying not to say “zoomed”), moved ahead quickly Friday morning, rising 8% through 9:50 a.m. ET after beating soundly on its fiscal Q2 2026 earnings report last night.

Analysts forecast Zoom would earn $1.38 per share, adjusted for one-time items, on sales of $1.2 billion. Zoom earned $1.53 instead, and sales were a bit ahead of $1.2 billion.

Image source: Getty Images.

Zoom Q2 earnings

The report wasn’t quite as good as that makes it sound. Sales grew less than 5% year over year, and Zoom’s earnings as calculated according to generally accepted accounting principles (GAAP) weren’t quite as robust as the “adjusted” figure. GAAP profits were actually only $1.16 per share.

Still — and here I’m going to say it — those earnings zoomed 66% higher in comparison to last year’s Q2.

(For what it’s worth, the rise in adjusted earnings was only 10%).

Is Zoom stock a buy?

Commenting on the results, CEO Eric Yuan said “Zoom is at the forefront [of how] AI is transforming the way we work together,” essentially arguing that Zoom is an artificial intelligence stock — and the numbers back him up.

Zoom generated an incredible $508 million in Q2 free cash flow (FCF), up 39% year over year, and the company’s generated nearly $1 billion ($971.3 million, to be precise) in FCF so far this year. If Zoom can keep going at that rate, the company could conceivably rack up nearly $2 billion in cash profits this year, and at a market cap of only $24 billion, this would value the stock at barely 12 times FCF.

Whether Zoom’s growing at 66%, 39%, or even only 10%, that probably makes it a great growth stock buy.

The Clippers went from “strongly, strongly considering” bringing Chris Paul back to the franchise to actually agreeing to a deal with the point guard on Monday, according to people familiar with the situation but not authorized to speak publicly.

Lawrence Frank, the Clippers’ president of basketball operations, told the media Saturday in a Zoom that Paul “obviously possesses some of the qualities we just referenced” and that led to the two sides agreeing to a veteran’s minimum deal of about $3.6 million.

Paul played joined the Clippers for the 2011-12 season and was with the team until 2017 as he teamed up with Blake Griffin and DeAndre Jordan to form the core of the “Lob City” teams.

“What I’d say about Chris is he’s a great player,” Frank said during that Zoom meeting. “He’s a great Clipper.”

In what is likely his final season in the NBA, Paul will be entering his 21st campaign and will do so in Los Angeles, where his family lives.

Paul, 40, played in all 82 games last season with the San Antonio Spurs. He averaged 28.0 minutes per game, 8.8 points, 3.6 rebounds, 7.4 assists and shot 42.7% from the field.

Over the course of his career, Paul averaged 17.0 points, 9.2 assists and shot 47% from the field and 37% from three-point range.

Paul, a 12-time NBA All-Star, was a teammate with James Harden during the 2017-18 season with the Houston Rockets.

With the addition of Paul, the Clippers now have five veteran guards. They signed Bradley Beal to a two-year, $11-million deal and they also have Harden, Kris Dunn and Bogdan Bogdanonic.