Zoom lifts annual forecasts on robust demand amid AI push
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 behaviour, 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 US customers.
The company now sees fiscal 2026 revenue between US$4.80 billion and US$4.81 billion, above its prior forecast of US$4.79 billion and US$4.80 billion. Analysts expect US$4.79 billion, according to data compiled by LSEG.
'With a beefed-up buyback programME 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 US$5.56 and US$5.59, compared with estimates of US$5.41. It had earlier forecast adjusted profit between US$5.34 and US$5.37.
Revenue for the first quarter ended April 30 was US$1.17 billion, in line with expectations. Adjusted profit came in at US$1.43 per share, compared with estimates of US$1.31. REUTERS
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