Zoom Raises Annual Forecasts as Demand Soars with AI Boost
– Zoom Communications increased its yearly revenue outlook 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 tools and the broadening of its service offerings have benefitedZoom. In March, it introduced agentive AI companion features along with AI enhancements throughout its platform.
“In an uncertain macro-economic environment, customers are turning to Zoom to drive efficiency, improve customer and employee experiences, and future-proof their businesses,” CEO Eric Yuan said.
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 predict $4.79 billion.
“Zoom’s enhanced share repurchase initiative along with expanded updates for their AI Companion, which now covers areas such as shift summaries and video clipping, gives them all they need to craft 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 $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, which met market expectations. The adjusted earnings per share were reported at $1.43, an increase from the $1.35 recorded in the previous year during the same period.
(Juby Babu reported from Mexico City)