Zoom surges on strong AI integration and upbeat forecasts

• Company reports second-quarter revenue of $1.22b and expects third-quarter revenue to the same.
• Company now anticipates full-year fiscal 2026 revenue in the neighborhood of $4.83b to $4.84b, noticeably higher than the previously forecasted $4.80b to $4.8b.

Zoom Communications has set a bullish tone for the rest of its fiscal year, bumping up both its annual revenue and profit targets.

The renewed confidence comes on the back of rising hybrid work trends and the rapid integration of artificial intelligence across its suite of products—a combination that spurred Zoom’s shares to a 4.5% jump in after-hours trading.

Branching beyond its video-conferencing roots, Zoom has doubled down on AI capabilities and diversified services, turning its focus on long-term sustainability.

The investment in agentic AI and feature-rich add-ons is helping the company maintain momentum in its core video product while carving inroads into new business categories.

Focuses on agentic AI features

The company now anticipates full-year fiscal 2026 revenue in the neighborhood of $4.83 billion to $4.84 billion, noticeably higher than the previously forecasted $4.80 billion to $4.81 billion.

Adjusted annual profit per share got a similar boost, now landing between $5.81 and $5.84, up from its earlier range of $5.56 to $5.59.

For the third quarter, Zoom projects revenue between $1.21 billion and $1.22 billion.

Zoom’s financial health appears robust. The company posted second-quarter revenue of $1.22 billion, closing out July 31, coupled with adjusted earnings of $1.53 a share.

Recent product launches may be fueling Zoom’s optimistic forecasts. In June, the company unveiled Virtual Agent 2.0—a smart, autonomous digital assistant capable of tackling complex actions like processing returns, updating customer accounts, or even booking appointments, all driven by cutting-edge agentic AI.

The momentum continued into July with additional agentic AI features, including a Custom AI Companion add-on designed for small businesses, which now can use AI Companion capabilities not only within Zoom but also across third-party video services such as Google Meet.

Zoom’s expansionary efforts and bold bets on AI are part of its strategy to retain the massive user base and enterprise partners gained during the pandemic surge.