Zoom Boosts Annual Forecasts as AI Integration Drives Robust Demand
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Zoom Communications lifts annual forecasts on robust demand for AI tools
Aug 21 (Reuters) - Zoom Communications (ZM.O), opens new tab raised its annual revenue and profit forecasts on Thursday, banking on hybrid work trends and the integration of artificial intelligence technology into its products, sending its shares up 4.5% in extended trading. The integration of AI across its product line and the broadening of its service portfolio have helped Zoom sustain growth in its core video-conferencing offering, while enabling it to enter and scale in new markets. The company in June introduced its Virtual Agent 2.0, which can autonomously complete complex tasks such as processing returns, updating accounts or booking appointments, powered by agentic AI. Zoom also launched a slew of new agentic AI capabilities in July, including a Custom AI Companion add-on that enables small business owners to leverage AI Companion across third-party video conferencing platforms such as Google Meet. During pandemic-induced lockdowns, the company had witnessed a rapid growth in users and subscribers as organizations turned to online video-conferencing platforms. Zoom now expects fiscal 2026 revenue between $4.83 billion and $4.84 billion, above its earlier projection of $4.80 billion to $4.81 billion. It forecast annual adjusted profit per share between $5.81 and $5.84, compared with a prior view of $5.56 and $5.59. The company's third-quarter revenue forecast range of $1.21 billion to $1.22 billion was above analysts' average estimate of $1.21 billion, according to data compiled by LSEG. Its revenue for the second quarter ended July 31 came in at $1.22 billion, beating estimates of $1.20 billion. Zoom earned $1.53 per share on an adjusted basis during the second quarter, topping analysts' expectations of $1.37. Reporting by Juby Babu in Mexico City; Editing by Shreya Biswas Our Standards: The Thomson Reuters Trust Principles., opens new tab
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Zoom Communications lifts annual forecasts on robust demand for AI tools
Zoom Communications, Inc., formerly Zoom Video Communications, Inc., provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Companyâs AI-powered, open collaboration platform built for modern work enables to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion include collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom docs, Zoom whiteboard, Zoom clips, and Zoom tasks. Its space products include Zoom rooms, Zoom workspace reservation, and Zoom visitor management. It serves various industries, including education, financial service, government, retail, and healthcare.
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(ZM) Zoom Communications, Inc. Expects Q3 Adjusted EPS Range $1.42 - $1.44
Zoom Communications, Inc., formerly Zoom Video Communications, Inc., provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Companyâs AI-powered, open collaboration platform built for modern work enables to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion include collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom docs, Zoom whiteboard, Zoom clips, and Zoom tasks. Its space products include Zoom rooms, Zoom workspace reservation, and Zoom visitor management. It serves various industries, including education, financial service, government, retail, and healthcare.
[4]
(ZM) Zoom Communications, Inc. Expects Q3 Revenue Range $1.21B - $1.22B
Zoom Communications, Inc., formerly Zoom Video Communications, Inc., provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Companyâs AI-powered, open collaboration platform built for modern work enables to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion include collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom docs, Zoom whiteboard, Zoom clips, and Zoom tasks. Its space products include Zoom rooms, Zoom workspace reservation, and Zoom visitor management. It serves various industries, including education, financial service, government, retail, and healthcare.
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Zoom Communications raises its annual revenue and profit forecasts, citing strong demand for its AI-integrated products and sustained growth in its core video-conferencing offering.
Zoom's Financial Outlook Brightens with AI-Driven Growth
Zoom Communications, the company that became synonymous with video conferencing during the pandemic, is now leveraging artificial intelligence to propel its next phase of growth. The company has raised its annual revenue and profit forecasts, citing robust demand for its AI-integrated tools and sustained growth in its core video-conferencing offering 1.
Source: Reuters
AI Integration Fuels Product Innovation
Zoom's strategic integration of AI across its product line has been a key driver of its recent success. In June, the company introduced Virtual Agent 2.0, an advanced AI-powered tool capable of autonomously handling complex tasks such as processing returns, updating accounts, and booking appointments 1. This innovation demonstrates Zoom's commitment to enhancing user experience through intelligent automation.
Further expanding its AI capabilities, Zoom launched a series of new features in July, including the Custom AI Companion add-on. This tool enables small business owners to utilize AI Companion across third-party video conferencing platforms like Google Meet, broadening Zoom's reach beyond its own ecosystem 1.
Financial Projections and Performance
The company's confidence in its AI-driven strategy is reflected in its updated financial projections:
- Fiscal 2026 revenue forecast: $4.83 billion to $4.84 billion (up from previous $4.80 billion to $4.81 billion)
- Annual adjusted profit per share: $5.81 to $5.84 (increased from $5.56 to $5.59)
- Third-quarter revenue forecast: $1.21 billion to $1.22 billion 1
Zoom's second-quarter performance has already shown promising results:
- Revenue: $1.22 billion (beating estimates of $1.20 billion)
- Adjusted earnings per share: $1.53 (surpassing expectations of $1.37) 1
Zoom Workplace: An AI-Powered Collaboration Platform
Central to Zoom's evolving strategy is Zoom Workplace, an AI-powered, open collaboration platform designed for modern work environments. This platform aims to streamline communications, boost employee engagement, optimize in-person interactions, and improve overall productivity 234.
Zoom Workplace, powered by Zoom AI Companion, encompasses a wide range of solutions:
- Communication products: Meetings, Phone, Team Chat, Scheduler, Mail, and Calendar
- Productivity tools: Docs, Whiteboard, Clips, and Tasks
- Space management: Rooms, Workspace Reservation, and Visitor Management 234
Industry Impact and Future Outlook
Zoom's pivot towards AI integration is not just a response to changing work trends but a strategic move to maintain its relevance in a post-pandemic world. The company's ability to sustain growth in its core video-conferencing offering while expanding into new markets demonstrates its adaptability and forward-thinking approach 1.
As hybrid work models continue to evolve, Zoom's comprehensive suite of AI-enhanced tools positions the company to cater to a wide range of industries, including education, financial services, government, retail, and healthcare 234. This diversification strategy, coupled with its focus on AI innovation, suggests that Zoom is well-positioned to navigate the changing landscape of digital communication and collaboration.
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