Zoom lifts annual outlook on growing demand for AI tools in hybrid work
The Zoom Video Communications logo is pictured at the NASDAQ MarketSite in New York, New York, U.S., April 18, 2019. REUTERS/Carlo Allegri
Zoom Communications raised its annual revenue and profit forecasts on Monday, benefiting from hybrid work trends and the integration of artificial intelligence into its products.
Shares of the company rose 3.5 per cent in extended trading.
Zoom has intensified its push to embed AI functionalities across its products and broaden its service offerings to capitalize on the demand for hybrid work solutions.
New products such as Phone, Contact Center and Virtual Agent, are driving the majority of Zoom's growth.
"We're also seeing strong momentum with Custom AI Companion and our AI-first Customer Experience suite, which helped make this one of our best CX quarters, with broad AI adoption across major deals," CEO Eric Yuan said.
Demand for AI agents, which are programs that can act autonomously to perform specific tasks, has been growing as companies embrace the new technology to automate workflows and improve efficiency.
"As companies move beyond AI science projects to demanding clear business outcomes, Zoom's AI companion is included in eligible paid plans, making it an attractive foundation for future AI monetization efforts while driving adoption," said Rebecca Wettemann, CEO of industry analyst firm Valoir.
Zoom expects fiscal 2026 revenue between $4.85 billion and $4.86 billion, compared with its earlier forecast of $4.83 billion to $4.84 billion.
It expects annual adjusted profit per share between $5.95 and $5.97, compared to a prior view of $5.81 and $5.84. The company increased its share repurchase authorization by $1 billion.
It has also partnered with Nvidia to include the chipmaker's Nemotron open technologies to support AI Companion 3.0 across industries such as finance, healthcare and government.
Revenue for the third quarter was $1.23 billion, ahead of estimates of $1.21 billion, according to data compiled by LSEG.
Zoom earned $1.52 per share on an adjusted basis compared with estimates of $1.44.
