Videoconferencing powerhouse Zoom boosts 2026 outlook as AI drives demand

Zoom‘s enhanced AI capabilities and expanded services are driving a fiscal outlook upgrade, as the company capitalizes on hybrid work trends despite caution from some larger clients. The videoconferencing giant has successfully integrated agentic AI into its platform while maintaining strong customer demand, allowing it to increase both revenue and profit forecasts for fiscal 2026.

The big picture: Zoom Communications has raised its annual revenue forecast after successfully integrating artificial intelligence features across its platform, demonstrating resilience in the evolving hybrid work landscape.

• The company now expects fiscal 2026 revenue between $4.80 billion and $4.81 billion, up from its previous forecast of $4.79 billion to $4.80 billion.
• Analysts had anticipated revenue of $4.79 billion according to LSEG data, placing Zoom’s new guidance slightly ahead of market expectations.

Key financials: Zoom also increased its profit outlook while meeting expectations for the first quarter of fiscal 2026.

• The company forecasts annual adjusted profit per share between $5.56 and $5.59, higher than its previous guidance of $5.34 to $5.37, and above analyst estimates of $5.41.
• First-quarter revenue reached $1.17 billion, aligning with expectations, while adjusted profit was $1.43 per share, exceeding estimates of $1.31.

What they’re saying: CFO Michelle Chang emphasized that customer behavior remained largely stable despite economic pressures.

• “Across online and enterprise, the majority of the business in the first quarter saw no change in buying behavior, still strong demand,” Chang noted on the post-earnings call.
• Jeremy Goldman, senior director of briefings at Emarketer, observed that “With a beefed-up buyback program and AI Companion upgrades now spanning everything from shift summaries to clip generation, Zoom finally has the makings of a new story to tell.”

Behind the numbers: Zoom’s integration of AI features, particularly its AI Companion capabilities introduced in March, has strengthened its competitive position despite increased scrutiny from some larger customers.

• Chang noted that while a few larger U.S. customers showed “increased caution and more scrutiny on deal terms,” the company didn’t experience financial losses as a result.
• The expanded AI functionality across Zoom’s platform appears to be resonating with its customer base, helping sustain demand in a competitive market.