Zoom Communications on Thursday nudged up its full-year financial targets and signaled confidence that newly embedded artificial intelligence features will help sustain demand from both corporate customers and individual users. The company raised its annual revenue and profit outlook and approved more share repurchases as it continues to integrate AI agents and companions into its meeting and communications offerings.
Shares of the company climbed more than 7% in extended trading following the update.
Updated guidance and buyback authorization
- For fiscal 2027, Zoom now projects revenue between $5.08 billion and $5.09 billion, up from its earlier range of $5.07 billion to $5.08 billion.
- The company raised its annual adjusted earnings per share outlook to a range of $5.96 to $6.00, compared with the prior forecast of $5.77 to $5.81.
- Zoom also authorized an additional $1 billion for share repurchases.
Quarterly forecast and recent results
- Zoom projected second-quarter revenue between $1.26 billion and $1.27 billion, against consensus estimates of $1.27 billion as compiled by LSEG.
- Quarterly adjusted EPS was forecast in a range of $1.45 to $1.47, compared with analysts' average estimate of $1.48.
- For the first quarter ended April 30, revenue came in at $1.24 billion, ahead of estimates of $1.22 billion.
Strategy emphasis
The company has been steadily integrating AI capabilities into its core products, including agents and companion features designed to augment video meetings and broader communications. Management framed these enhancements as central to bolstering the platform's appeal and attracting additional enterprise customers.
Market reaction and short-term considerations
Investors reacted positively to the guidance lift and the expanded buyback authority, with the stock rising sharply in after-hours trade. The quarterly guidance sits close to consensus, with revenue guidance matching or narrowly under some estimates and EPS guidance slightly below the analysts' average.
Zoom's results and outlook underscore the company's focus on monetizing AI-enhanced features and returning capital to shareholders while tracking near-term analyst expectations for revenue and profit.