Zoom lifts annual outlook on growing demand for AI tools in hybrid work

A stock photo of a student on a video call during an online class. (Getty Images)

Zoom Communications raised its annual revenue and profit forecasts on Monday, benefiting from hybrid work trends and the integration of artificial intelligence into its products.

Shares of the company rose 3.5 per cent in extended trading.

Zoom has intensified its push to embed AI functionalities across its products and broaden its service offerings to capitalize on the demand for hybrid work solutions.

• Latest updates on company news here

New products such as Phone, Contact Centre and Virtual Agent, are driving the majority of Zoom’s growth.

“We’re also seeing strong momentum with Custom AI Companion and our AI-first Customer Experience suite, which helped make this one of our best CX quarters, with broad AI adoption across major deals,” CEO Eric Yuan said.

Demand for AI agents, which are programs that can act autonomously to perform specific tasks, has been growing as companies embrace the new technology to automate workflows and improve efficiency.

“As companies move beyond AI science projects to demanding clear business outcomes, Zoom’s AI companion is included in eligible paid plans, making it an attractive foundation for future AI monetization efforts while driving adoption,” said Rebecca Wettemann, CEO of industry analyst firm Valoir.

Zoom expects fiscal 2026 revenue between US$4.85 billion and US$4.86 billion, compared with its earlier forecast of US$4.83 billion to US$4.84 billion.

• Latest technology news on BNNBloomberg.ca

It expects annual adjusted profit per share between US$5.95 and US$5.97, compared to a prior view of US$5.81 and US$5.84. The company increased its share repurchase authorization by US$1 billion.

It has also partnered with Nvidia to include the chipmaker’s Nemotron open technologies to support AI Companion 3.0 across industries such as finance, healthcare and government.

Revenue for the third quarter was US$1.23 billion, ahead of estimates of US$1.21 billion, according to data compiled by LSEG.

Zoom earned US$1.52 per share on an adjusted basis compared with estimates of US$1.44.

---

Reporting by Juby Babu in Mexico City; Editing by Alan Barona