Zoom Reports Q1 Earnings Beat, Raises Full-Year Outlook

Zoom Communications reported first-quarter earnings and revenue that exceeded analysts' expectations, with adjusted earnings per share of $1.43 beating the $1.31 forecast and revenue rising nearly 3% to about $1.17 billion, in line with estimates. The company saw a notable 5.9% increase in enterprise customer revenue, indicating stronger sales from its expanded product suite. CEO Eric Yuan highlighted that customers are increasingly using Zoom to enhance efficiency and improve experiences amid uncertain economic conditions, supported by new product launches. For the second quarter, Zoom projected revenue between $1.195 billion and $1.2 billion and adjusted earnings per share of $1.36 to $1.37, slightly above analyst estimates. Zoom also raised its full-year fiscal 2026 outlook, expecting adjusted EPS of $5.56 to $5.59 and revenue around $4.8 billion, surpassing previous guidance and Wall Street projections. Despite competition from other platforms like Microsoft Teams, Zoom continues to invest in AI integration and holds a strong cash position of $7.5 billion.