Zoom Communications raises annual forecasts, banking on AI features to drive enterprise demand

These Analysts Increase Their Forecasts On Zoom After Upbeat Q1 Results - Zoom Communications (NASDAQ:ZM)

Zoom Communications Inc. (NASDAQ:ZM) on Thursday reported better-than-expected first-quarter financial results and raised its FY27 guidance. Zoom reported revenue of $1.24 billion for the first quarter, beating the consensus estimate of $1.22 billion. The company posted first-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.42 per share, according to Benzinga Pro. "Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch," said Eric Yuan, founder and CEO of Zoom. The company now expects full-year revenue of $5.08 billion to $5.09 billion, versus estimates of $5.07 billion. Zoom now sees full-year adjusted earnings of $5.96 to $6 per share versus estimates of $5.87 per share. Zoom shares gained 10.4% to trade at $106.89 on Friday. These analysts made changes to their price targets on Zoom following earnings announcement. Considering buying ZM stock? Here's what analysts think: Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Zoom raises annual forecasts, banks on AI features to drive demand

May 21 (Reuters) - Zoom Communications raised its annual revenue and profit forecasts on Thursday, betting on strong demand for its AI features as the video conferencing platform looks to shore up enterprise and consumer spending. Shares of the company were up more than 7% in extended trading. Zoom has been extensively integrating AI tools, including agents and companions, into its video meeting and communication services, to boost its appeal and attract more enterprise customers. Here are more details: o The company now expects fiscal 2027 revenue of between $5.08 billion and $5.09 billion, compared with its earlier forecast of $5.07 billion to $5.08 billion. o It raised its annual adjusted earnings per share (EPS) outlook to between $5.96 and $6, compared with its prior forecast of $5.77 to $5.81. o The platform also authorized an additional $1 billion share buyback. o Zoom forecast second-quarter revenue between $1.26 billion and $1.27 billion, compared with estimates of $1.27 billion, according to data compiled by LSEG. o It expects quarterly adjusted EPS between $1.45 and $1.47, compared with analysts' average estimate of $1.48. o Revenue for the first quarter ended April 30 came in at $1.24 billion, beating estimates of $1.22 billion. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Diti Pujara)