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

Core Viewpoint - Zoom Communications has raised its annual revenue and profit forecasts, driven by hybrid work trends and AI integration into its products, leading to a 4% increase in shares during premarket trading [1]. Group 1: Financial Performance - Zoom expects fiscal 2026 revenue between $4.85 billion and $4.86 billion, an increase from the previous forecast of $4.83 billion to $4.84 billion [4]. - The company anticipates annual adjusted profit per share between $5.95 and $5.97, up from the prior estimate of $5.81 to $5.84 [4]. - Third-quarter revenue was reported at $1.23 billion, exceeding estimates of $1.21 billion, with adjusted earnings of $1.52 per share compared to estimates of $1.44 [6]. Group 2: Product and Service Development - New products such as Phone, Contact Center, and Virtual Agent are major contributors to Zoom's growth [2]. - The Custom AI Companion and AI-first Customer Experience suite have shown strong momentum, marking one of the best customer experience quarters for the company [2]. Group 3: Market Trends and Strategic Partnerships - There is a growing demand for AI agents as companies seek to automate workflows and improve efficiency [3]. - Zoom's AI companion is included in eligible paid plans, positioning the company for future AI monetization efforts [3]. - The company has partnered with Nvidia to integrate its Nemotron open technologies to support AI Companion 3.0 across various industries, including finance, healthcare, and government [6].