Zoom Boosts 2026 Revenue Forecast as AI Integration Drives Strong Growth

Zoom Boosts 2026 Revenue Forecast as AI Integration Drives Strong Growth

Zoom Communications delivered impressive third-quarter results and raised its fiscal 2026 outlook, demonstrating how the company is successfully capitalizing on the intersection of hybrid work trends and artificial intelligence adoption.

The video conferencing giant increased its annual revenue forecast to $4.85-$4.86 billion, up from the previous range of $4.83-$4.84 billion. Even more striking, Zoom raised its adjusted earnings per share outlook to $5.95-$5.97, significantly higher than its prior forecast of $5.81-$5.84.

Key Performance Highlights

• Third-quarter revenue: $1.23 billion (beating estimates of $1.21 billion)
• Adjusted earnings per share: $1.52 (surpassing estimates of $1.44)
• Stock response: Shares jumped 3.5% in extended trading
• Share repurchase: Authorized an additional $1 billion in buybacks

AI Integration Driving the Growth Engine

Zoom's strategic pivot toward AI-powered solutions is paying dividends. CEO Eric Yuan highlighted strong momentum with the company's Custom AI Companion and AI-first Customer Experience suite, describing it as "one of our best CX quarters."

The company has partnered with Nvidia to incorporate Nemotron open technologies into AI Companion 3.0, targeting key sectors including finance, healthcare, and government.

According to Rebecca Wettemann, CEO of industry analyst firm Valoir, Zoom's approach of including AI companion features in eligible paid plans creates "an attractive foundation for future AI monetization efforts while driving adoption."

New AI-powered products like Phone, Contact Center, and Virtual Agent are now driving the majority of Zoom's growth, signaling a successful diversification beyond traditional video conferencing.

The Bigger Picture for Businesses

As companies move beyond experimental AI projects to demand measurable business outcomes, Zoom's integrated approach positions it well in the evolving workplace technology landscape. The growing demand for AI agents—autonomous programs that can perform specific tasks—reflects businesses' push to automate workflows and boost efficiency.

Read the full article on Reuters