Zoom Raises Annual Forecasts Amid Strong Demand and AI Surge

- Zoom Communications increased its yearly revenue projection on Wednesday, capitalizing on hybrid work patterns and the incorporation of artificial intelligence into its offerings.

The corporation's stock increased by 2% during after-hours trading.

The incorporation of artificial intelligence into its suite of tools and the broadening of its service offerings have assisted Zoom. In March, it introduced agentive AI companion features along with various AI enhancements throughout its platform.

"Amidst an unpredictable macroeconomic climate, customers are embracing Zoom to boost efficiency, enhance both customer and employee experiences, and safeguard their business for the future," stated CEO Eric Yuan.

The firm currently anticipates revenues for fiscal year 2026 to range from $4.80 billion to $4.81 billion, surpassing their previous projection of $4.79 billion to $4.80 billion. According to data gathered by LSEG, analysts had been expecting $4.79 billion.

"Zoom’s enhanced buyback initiative along with upgrades to their AI Companion across features such as shift summaries and clip creation, positions them well for crafting a fresh narrative," according to Jeremy Goldman, who serves as the senior director of briefings at Emarketer.

The company predicts an annual adjusted profit per share ranging from $5.56 to $5.59, surpassing the estimated figure of $5.41. Previously, they had anticipated an adjusted profit within the range of $5.34 to $5.37.

The revenue for the first quarter ending on April 30 stood at $1.17 billion, meeting market expectations. The adjusted earnings per share were reported at $1.43, an increase from the $1.35 recorded during the same period last year.

(Juby Babu reports from Mexico City)