Zoom raises annual outlook on strong AI demand

Zoom raised its annual revenue and profit forecasts for fiscal 2026 after reporting better-than-expected Q2 results.

The company introduced new AI-powered features in June and July, including Virtual Agent 2.0 and a Custom AI Companion add-on for third-party conferencing platforms.

The company now expects revenue between US$4.8 billion and US$4.8 billion, up from a previous range of US$4.8 billion to US$4.8 billion.

Zoom also increased its estimated annual adjusted profit per share to between US$5.8 and US$5.8, compared to an earlier forecast of US$5.6 to US$5.6.

Shares rose 4.5% in extended trading following the announcement.

For the second quarter ended July 31, 2025, Zoom reported revenue of US$1.2 billion, beating analyst estimates of US$1.2 billion.

Adjusted earnings per share for the quarter were US$1.5, above expectations of US$1.4.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Zoom’s revenue growth reflects successful diversification beyond video conferencing

While Zoom became synonymous with pandemic-era video calls, its current financial performance demonstrates how the company has evolved into a comprehensive business communications platform.

The company now generates 58% of its revenue from 219,700 enterprise customers, with 3,731 high-value clients contributing over $100,000 annually—a 49% increase since October 20212.

Zoom Phone exemplifies this diversification strategy, growing to 7 million paid user seats since its 2019 launch, while the Zoom App Marketplace has expanded to over 2,400 integrations with 60% growth since July 20212.

This broader platform approach explains how Zoom can raise its annual revenue forecast to $4.83-4.84 billion despite operating in a mature video conferencing market1.

The strategy mirrors other successful tech companies that have expanded from single-product offerings into comprehensive platforms, allowing Zoom to capture more wallet share from existing customers rather than relying solely on user growth.