:max_bytes(150000):strip_icc()/GettyImages-2230753568-4be7ace81b1442ddb76ba2f67e0b021a.jpg "Zoom Stock Soars as Firm Tops Estimates, Raises Outlook on AI Boom")
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Key Takeaways
- Zoom Communications reported second-quarter results that topped estimates as the video conferencing software provider rode the artificial intelligence wave.
- The company increased the number of customers spending more than $100,000 on Zoom.
- Zoom raised its full-year profit and sales forecasts.
Shares of Zoom Communications (ZM) zoomed more than 8% higher Friday, a day after the provider of video conferencing software posted better-than-expected results and raised its outlook as it benefited from the boom in artificial intelligence.
The company reported fiscal 2026 second-quarter adjusted earnings per share of $1.53 on revenue that rose nearly 5% year-over-year to $1.22 billion. Analysts surveyed by Visible Alpha were looking for $1.37 and $1.20 billion, respectively.
Enterprise revenue grew 7% to $730.7 million, and Online revenue added 1.4% to $486.6 million. At the end of the quarter, the company had 4,274 customers contributing more than $100,000 in 12-month trailing revenue, a nearly 9% increase from the year before.
“AI is transforming the way we work together, and Zoom is at the forefront, driving innovation that helps people get more done, reduce costs, and deliver better experiences for customers and employees alike,” founder and CEO Eric Yuan said.
Zoom now sees full-year adjusted EPS of $5.81 to $5.84, versus its earlier estimate of $5.56 to $5.59. It predicts revenue between $4.825 billion and $4.835 billion, compared to the previous outlook of $4.800 billion and $4.810 billion.
Despite today’s gains, Zoom Communications shares are down about 3% this year.
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