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.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...