Zoom Raises Annual Forecast Amid AI Integration and Robust Demand

Zoom lifts annual forecasts on robust demand amid AI push

May 21 (Reuters) - Zoom Communications (ZM.O), opens new tab raised its annual revenue forecast on Wednesday, benefiting from hybrid work trends and the integration of artificial intelligence into its products. The company's shares rose 2% in extended trading. The integration of AI into its tools and expansion of its range of services has helped Zoom. It added agentic AI Companion capabilities and AI updates across its platform in March. "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 company now sees fiscal 2026 revenue between $4.80 billion and $4.81 billion, above its prior forecast of $4.79 billion and $4.80 billion. Analysts expect $4.79 billion, according to data compiled by LSEG. "With a beefed-up buyback program and AI Companion upgrades now spanning everything from shift summaries to clip generation, Zoom finally has the makings of a new story to tell," said Jeremy Goldman, senior director of briefings at Emarketer. It forecast annual adjusted profit per share between $5.56 and $5.59, compared with estimates of $5.41. It had earlier forecast adjusted profit between $5.34 and $5.37. Revenue for the first quarter ended April 30 was $$1.17 billion, in line with expectations. Adjusted profit came in at $1.43 per share, compared with $1.35 Zoom earned a year ago. Reporting by Juby Babu in Mexico City Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Zoom beats first quarter estimates on earnings and revenue - SiliconANGLE

Shares in Zoom Communications Inc. were up slightly in late trading today after the online communications company reported earnings and revenue beats in its fiscal year 2026 first quarter. For the quarter that ended on April 30, Zoom reported adjusted earnings per share of $1.43, up from $1.35 per share in the same quarter of the previous fiscal year, on revenue of $1.175 billion, up 2.9% year-over-year. Earnings came in ahead of the $1.31 per share expected by analysts and revenue was ahead of an expected $1.166 billion. Zoom ended the quarter with 4,192 customers contributing more than $100,000 in trailing 12-month revenue, up 8% year-over-year and the company reported a trailing 12-month net dollar expansion rate for enterprise customers of 98%. Net cash flow in the quarter came in at $489.3 million, down from $588.2 million in the first quarter of the previous fiscal year and Zoom ended the quarter with $7.8 billion in cash, cash equivalents and marketable securities on hand. Business highlights in the quarter included a major expansion of Zoom's AI Companion, which added more than 45 new features across its platform. The new features included automated shift summaries, meeting clip generation and deeper functionality via the new offering called Zoom AI Studio, which allows organizations to build custom AI agents tailored to specific workflows. The quarter also saw the launch of Zoom Workplace for Frontline, a mobile-first solution aimed at supporting the global frontline workforce across industries like healthcare, retail and manufacturing. The solution includes real-time activity feeds, automatic shift-based chat groups, push-to-talk communication, and AI-powered features such as shift reporting and smart search. Another notable release was the introduction of Custom AI Companion functionality. The offering allows organizations to create AI assistants that integrate directly into their workflows, offering task automation, contextual insights and enhanced personalization for different departments and roles. "We delivered another solid quarter, exceeding guidance in both revenue and profitability - a testament to the strength of our platform and AI-first innovation," said Eric S. Yuan, founder and chief executive officer of Zoom, in the company's earnings release. "In an uncertain macro-economic environment, customers are turning to Zoom to drive efficiency, improve customer and employee experiences and future-proof their businesses. For its fiscal 2026 second quarter, Zoom expects adjusted earnings per share of $1.36 to $1.37 on revenue of $1.195 billion to $1.2 billion. The revenue outlook was ahead of the $1.193 billion expected by analysts. For its full fiscal year, Zoom expects adjusted earnings of $5.56 to $5.59 per share on revenue of $4.8 billion to $4.81 billion.

Zoom Analysts Boost Targets, Raise Hands As AI Tools Gain Traction - Zoom Communications (NASDAQ:ZM)

Wall Street analysts rerated Zoom Communications, Inc ZM after the company reported its first-quarter results on Wednesday. Zoom reported quarterly earnings of $1.43 per share, which beat the analyst consensus estimate of $1.31. Quarterly revenue reached $1.17 billion, which met the Street estimate. Zoom raised its fiscal 2026 adjusted EPS guidance from $5.34-$5.37 to $5.56-$5.59, versus the $5.41 analyst estimate, and raised its revenue outlook from a range of $4.79 billion-$4.79 billion to a new range of $4.8 billion-$4.81 billion, versus the $4.79 billion estimate. Also Read: Zoom Faces International Growth Risks Amid Macroeconomic And Tariff Headwinds: Analyst Needham analyst Joshua Reilly rated Zoom Communications with a Buy and a $100 price target on Thursday. Rosenblatt analyst Catharine Trebnick maintained a Buy and raised the price target from $90 to $100 on Thursday. Oppenheimer analyst Timothy Horan had a Perform rating on Thursday. Citizens analyst Patrick Walravens maintained a Market Perform rating on Thursday. Piper Sandler analyst James Fish reiterated a Neutral and raised the price target from $77 to $85 on Wednesday. Cantor Fitzgerald analyst Thomas Blakey maintained a Neutral and $87 price target on Wednesday. Needham: Reilly noted Zoom is at an interesting inflection point where revenue headwinds from Online are easing, dilution from stock-based compensation has peaked, and the share count can decrease with buybacks moving forward, and finally, the pricing power of the business may be returning due to new embedded AI functionality as evidenced by the latest price increase for Online taking effect June 1. Given all of these items, and roughly 33% of the company's market cap is in cash, the analyst noted Zoom is well positioned for new AI-driven products to begin moving the needle on growth. Reilly projected fiscal 2026 adjusted EPS of $5.57 and fiscal 2027 adjusted EPS of $5.64. Rosenblatt: Zoom's first quarter total revenue increased 3% to $1.18 billion. It surpassed Street estimates and the high end of guidance, Trebnick noted. The Enterprise segment now constitutes 60% of total revenue. It grew by 6%, while the online segment achieved a record low churn rate of 2.8%, the analyst said. Adjusted EPS of $1.43, beat by $0.12 on operating expenditure savings and larger than expected share repurchase. She added that Zoom Customer Experience is now a triple-digit ARR segment, growing in high double digits. Zoom lifted its fiscal 2026 revenue guidance and raised its outlook for operating income. It also adjusted EPS while reaffirming free cash flow guidance. Trebnick projected fiscal 2026 adjusted EPS of $5.56 (prior $5.34) and fiscal 2027 adjusted EPS of $5.58 (prior $5.48). Oppenheimer: Horan noted that Zoom grew first-quarter revenue by 2.9%, a +90 bps beat. The analyst said that Enterprise revenue was 60% of total revenue, up +166bps, and increased 6%. He notes that gross margins rose 34bps for the quarter and fell -13bps for the year. The company continues to invest in AI. Adoption of AI Companion continues to grow, with monthly active users up ~40% sequentially, Horan said. AI Companion's usage is extending beyond meeting summaries, he added. Horan projected fiscal 2026 adjusted EPS of $5.53 and fiscal 2027 adjusted EPS of $5.92. Citizens: While macro pressure and guidance prompted Walravens to lower his full-year expectations for the Enterprise business, he mentioned some positive elements. Zoom Contact Center is a triple-digit ARR business growing in double digits; Zoom AI Companion's monthly active users are increasing by 40% sequentially. The analyst said Zoom is well-positioned to benefit from how AI is transforming how work gets done. He added that Zoom can return capital to shareholders through its $2 billion buyback program and maintains significant M&A flexibility as it is sitting on a cash hoard of $7.8 billion. Walravens increased his fiscal 2026 adjusted EPS estimate to $5.58 from $5.35 (consensus $5.41) and increased his fiscal 2027 adjusted EPS estimate to $5.61 from $5.52 (consensus $5.52). Piper Sandler: It was a relatively normal quarter for Zoom, as newer products show strength in selling into the installed base and lengthening deal durations, which would have helped normalized Direct growth accelerate, Fish noted. However, the core remains challenged with in-period NRR <100%, and Direct/Enterprise guide was lowered given concerns around some large US customers' deal-cycles, the analyst said. The guide dynamics appear conservative and he remains encouraged by the Online Pro price increase, CX size and growth, CX Elite package adoption, Workvivo acceleration, and Phone sustainability. Fish projected fiscal 2026 adjusted EPS of $5.37 and fiscal 2027 adjusted EPS of $5.34. Cantor Fitzgerald: The rerating reflected a strong first-quarter report driven by large customers, particularly $100k+ Enterprise customers. Zoom phone and CCaaS continue solid growth, driven by channel, competitive displacements, and AI, Blakey noted. Online saw record churn, which was flat sequentially. The analyst added that the updated fiscal 2026 topline guide implied that these trends continue for the rest of fiscal 2026. Blakey projected fiscal 2026 adjusted EPS of $5.59 (prior $5.36) and fiscal 2027 adjusted EPS of $5.60 (prior $5.47). Price Action: ZM shares are trading higher by 0.46% to $82.65 at last check on Thursday. Read Next: Zoom Eyes AI-Powered Growth, Analyst Highlights Innovation Momentum, Revenue Challenges Image: Shutterstock ZMZoom Communications Inc$82.760.60%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum83.01Growth85.67Quality49.91Value55.26Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Zoom lifts annual forecasts on robust demand amid AI push

(Reuters) -Zoom Communications raised its annual revenue forecast on Wednesday, benefiting from hybrid work trends and the integration of artificial intelligence into its products. The integration of AI into its tools and expansion of its range of services has helped Zoom. It added agentic AI Companion capabilities and AI updates across its platform in March. "Across online and enterprise, the majority of the business in the first quarter saw no change in buying behavior, still strong demand," CFO Michelle Chang said on a post-earnings call. Chang said no losses were incurred even though there was increased caution and more scrutiny on deal terms among a few larger U.S. customers. The company now sees fiscal 2026 revenue between $4.80 billion and $4.81 billion, above its prior forecast of $4.79 billion and $4.80 billion. Analysts expect $4.79 billion, according to data compiled by LSEG. "With a beefed-up buyback program and AI Companion upgrades now spanning everything from shift summaries to clip generation, Zoom finally has the makings of a new story to tell," said Jeremy Goldman, senior director of briefings at Emarketer. It forecast annual adjusted profit per share between $5.56 and $5.59, compared with estimates of $5.41. It had earlier forecast adjusted profit between $5.34 and $5.37. Revenue for the first quarter ended April 30 was $1.17 billion, in line with expectations. Adjusted profit came in at $1.43 per share, compared with estimates of $1.31.