Zoom improved its revenue forecast due to growing demand for AI for hybrid operation

Enterprise calling and call center startup software developer Zoom Communications raised its full-year revenue and earnings forecast amid growing demand for artificial intelligence-enabled services for hybrid operations.

For fiscal 2026 (ending Jan. 31), Zoom expects earnings in the range of $5.95 to $5.97 per share on revenue of $4.85 billion to $4.86 billion. The new earnings forecast is more than 2% higher than the previous one, and 0.4% higher on revenue.

Zoom's revenue rose 4.4 percent to $1.23 billion in the third quarter ended Oct. 31. Analysts had expected $1.21 billion, according to data compiled by Bloomberg. Adjusted earnings were $1.52 per share, compared with Wall Street forecasts of $1.44 per share.

Zoom's revenue from its enterprise segment (Enterprise) rose 6.1% to $741.4 million, beating analysts' expectations by more than 1%. The company said it had 4,363 customers in the period, generating more than $100,000 in revenue over the past 12 months. Meanwhile, the average monthly churn rate among clients slowed to 2.7% in the quarter, compared to 2.9% in the previous quarter. After pandemic-related restrictions were lifted, many of those users did not renew their Zoom licenses, Bloomberg explains.

The developer of video conferencing services is introducing artificial intelligence features into all of its products and expanding its list of services to capitalize on the growing demand for hybrid technology, Reuters reports. Zoom has focused on large customers, providing them with corporate telephony and contact center software. At its annual conference in September, Zoom unveiled a new version of its artificial intelligence-based assistant with the ability to create custom AI tools for $12 a month.

"We announced AI Companion 3.0 this quarter, and we are excited to see significant growth in its adoption," said Zoom CEO Eric Yuan. - "We are also seeing strong demand for Custom AI Companion and our suite of AI First Customer Experience solutions.

Investors took Zoom's report positively, with the company's securities rising 3.7% to $81.5 in the postmarket on Nov. 24.

At the same time, since the beginning of the year, Zoom securities have lost 3.7%. This happened against the background of a general deterioration in investors' attitude to the application software sector, Bloomberg explains.

This article was AI-translated and verified by a human editor