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6mo ago

Zoom Lifts Outlook After Earnings Beat as AI Tools Gain Traction

Rising enterprise adoption of new AI features signals progress in Zoom’s pivot beyond video.

A Zoom logo appears in this illustration taken August 18, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE – This April 18, 2019, file photo shows a sign for Zoom Video Communications ahead of the company’s Nasdaq IPO in New York. The video-conferencing service is cutting about 1,300 jobs, or approximately 15% of its workforce. CEO Eric Yuan said in a blog post Tuesday, Feb. 7, 2023, that the company ramped up staffing during the COVID-19 pandemic, when businesses became increasingly reliant on its service as people worked from home. Yuan said Zoom grew three times in size within 24 months to manage demand. (AP Photo/Mark Lennihan, File)
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Overview

  • Fiscal Q2 revenue reached $1.22 billion with adjusted EPS of $1.53, topping estimates of about $1.20 billion and $1.37.
  • Zoom raised fiscal 2026 guidance to $4.83–$4.84 billion in revenue and $5.81–$5.84 in adjusted EPS, with Q3 revenue projected at $1.21–$1.22 billion.
  • The company highlighted accelerating AI use, reporting “millions” of monthly active users for its AI companion, up fourfold year over year.
  • Recent AI launches include Virtual Agent 2.0 that can autonomously handle tasks like returns and appointments and a Custom AI Companion add-on usable on third‑party platforms such as Google Meet.
  • Enterprise momentum strengthened with revenue up 7% to $730.7 million, 4,274 customers contributing over $100,000 in trailing 12‑month sales, and shares jumping as much as 13% on the results as analysts still flag modest top‑line growth.