Post by : Badri Ariffin

Zoom Communications has revised its annual revenue and profit outlook higher, capitalizing on the rise of hybrid work and the escalating use of AI-integrated tools. Following this news, shares surged 3.5% in after-hours trading.

The firm is actively incorporating artificial intelligence into its product line, including enhancements to Zoom Phone, Contact Center, and Virtual Agent. These offerings are significantly boosting the company's growth, mirroring the increasing need for adaptive, digital-first solutions in the workplace.

Zoom’s AI strategies, such as the Custom AI Companion and the AI-oriented Customer Experience suite, are proving effective in large contracts. These innovations are designed to streamline workflows and boost productivity, aligning with a broader transition among businesses from experimental AI initiatives to practical application.

For fiscal 2026, the company forecasts revenue between $4.85 billion and $4.86 billion, increasing from its prior estimate of $4.83–$4.84 billion. Adjusted earnings per share are anticipated to reach $5.95–$5.97, surpassing the earlier guidance of $5.81–$5.84. Additionally, Zoom has extended its share repurchase program by an extra $1 billion.

In partnership with Nvidia, Zoom is integrating the chipmaker’s cutting-edge Nemotron technologies to enhance its AI Companion 3.0 for industries such as finance, healthcare, and government. Third-quarter revenue was reported at $1.23 billion, exceeding estimates of $1.21 billion, with adjusted EPS hitting $1.52 compared to forecasts of $1.44.

These recent results highlight how Zoom is harnessing technological advancements to propel growth while balancing innovation with robust financial outcomes, asserting its role as a major entity in the changing landscape of hybrid work.

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