Zoom Reports Strong AI Growth, Plans Custom Products for 2025

Zoom Communications reported lower-than-expected revenue projections for fiscal 2026, estimating sales between $4.79 billion and $4.80 billion, compared to analysts' expectations of $4.81 billion. This forecast reflects ongoing challenges as companies shift away from hybrid work models, with significant clients like Amazon and JPMorgan Chase returning employees to the office full-time. Despite a 68% increase in AI Companion users and plans to launch new AI features in April, analysts remain skeptical about Zoom's ability to sustain growth, citing competition from Microsoft Teams and a lack of a compelling long-term strategy. In its recent earnings report, Zoom posted adjusted earnings per share of $1.41, exceeding forecasts, but overall revenue growth was modest at 3.3% year-over-year. The company's shares dipped 2.5% during extended trading as concerns about demand for video conferencing tools persist. CEO Eric Yuan expressed confidence in AI's potential to drive future revenue, though many analysts are cautious regarding its immediate impact.