TLDR
- Zoom delivered Q1 results with adjusted EPS of $1.55, surpassing the $1.42 consensus estimate
- Quarterly revenue increased 5.5% annually to $1.24 billion, topping the $1.22 billion Wall Street projection
- AI Companion paid users skyrocketed 184% compared to the prior-year period
- Enterprise segment revenue rose 7.2% to reach $755.7 million
- Fiscal 2027 full-year projections increased beyond analyst expectations for both EPS and revenue
Shares of Zoom Video Communications (ZM) surged more than 7% during Friday’s premarket session following the videoconferencing giant’s announcement of stronger-than-anticipated first-quarter fiscal results and an upward revision to its annual projections.
The stock experienced a 7.8% climb in premarket hours, building on the 12% appreciation it had already achieved throughout 2026.
For the quarter that concluded on April 30, adjusted earnings registered at $1.55 per share. This figure exceeded analyst projections of $1.42 by a margin of $0.13.
Quarterly revenue totaled $1.24 billion, representing a 5.5% year-over-year increase and surpassing Wall Street’s anticipated $1.22 billion.
CEO Eric Yuan highlighted artificial intelligence adoption as a pivotal growth catalyst. “Customers are increasingly adopting Zoom as an AI-first system of action for modern work,” Yuan stated in the company’s earnings announcement.
Subscribers to Zoom’s AI Companion platform expanded by 184% versus the comparable quarter last year. The company’s “My Notes” artificial intelligence capability attracted 1.5 million licensed users in merely four months following its introduction.
Enterprise Momentum
Revenue from the enterprise segment expanded 7.2% year-over-year, reaching $755.7 million. The trailing 12-month net dollar expansion rate among enterprise clients improved to 99%, advancing from 98% recorded in the previous year’s quarter.
Zoom currently serves 4,534 clients that each generate over $100,000 in trailing 12-month revenue, reflecting an 8.2% year-over-year increase.
Operating cash flow for the quarter registered at $500.5 million, climbing from $463.4 million in the year-ago period.
Zoom’s board of directors also approved an incremental $1.0 billion stock buyback authorization, supplementing the $625 million that remained available from a previous program.
Guidance
For the second quarter, Zoom projected adjusted EPS in the range of $1.45 to $1.47, marginally trailing the $1.49 analyst consensus. The company’s revenue guidance of $1.265 billion to $1.27 billion aligned approximately with market expectations.
For the complete fiscal year 2027, Zoom elevated its EPS forecast to a range of $5.96–$6.00, exceeding the $5.87 analyst consensus. Annual revenue projections now stand between $5.08 billion and $5.09 billion, surpassing the $5.07 billion Wall Street estimate.
Analysts at Morgan Stanley observed that the “path to re-rating hinges on durably higher growth,” noting that “Zoom’s Q1 showed stable growth at scale with strong margins, but FY27 growth remains mid-single digits.”
Yuan emphasized the company’s broader artificial intelligence strategy as fundamental to its future trajectory. “We remain focused on turning AI innovation into durable growth, measurable customer value, and long-term shareholder returns,” he commented.
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