Zoom Communications lifts annual forecasts on robust demand for AI tools

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(Reuters) -Zoom Communications raised its annual revenue and profit forecasts on Thursday, banking on hybrid work trends and the integration of artificial intelligence technology into its products, sending its shares up 4.5% in extended trading.

The integration of AI across its product line and the broadening of its service portfolio have helped Zoom sustain growth in its core video-conferencing offering, while enabling it to enter and scale in new markets.

The company in June introduced its Virtual Agent 2.0, which can autonomously complete complex tasks such as processing returns, updating accounts or booking appointments, powered by agentic AI.

Zoom also launched a slew of new agentic AI capabilities in July, including a Custom AI Companion add-on that enables small business owners to leverage AI Companion across third-party video conferencing platforms such as Google Meet.

During pandemic-induced lockdowns, the company had witnessed a rapid growth in users and subscribers as organizations turned to online video-conferencing platforms.

Zoom now expects fiscal 2026 revenue between $4.83 billion and $4.84 billion, above its earlier projection of $4.80 billion to $4.81 billion.

It forecast annual adjusted profit per share between $5.81 and $5.84, compared with a prior view of $5.56 and $5.59.

The company’s third-quarter revenue forecast range of $1.21 billion to $1.22 billion was above analysts’ average estimate of $1.21 billion, according to data compiled by LSEG.

Its revenue for the second quarter ended July 31 came in at $1.22 billion, beating estimates of $1.20 billion.

Zoom earned $1.53 per share on an adjusted basis during the second quarter, topping analysts’ expectations of $1.37.

(Reporting by Juby Babu in Mexico City; Editing by Shreya Biswas)