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Zoom Soars on Earnings Beat and Higher Outlook as AI Push Gains Traction

Rising demand for AI-powered customer communications tools signals progress beyond core videoconferencing.

Overview

  • Zoom posted fiscal Q3 revenue of $1.23 billion and adjusted EPS of $1.52, topping estimates of $1.21 billion and $1.44.
  • The company raised full-year guidance to $4.85–$4.86 billion in revenue and $5.95–$5.97 in adjusted EPS.
  • Shares jumped about 13% on Tuesday trading following the results and guidance update.
  • Management cited broad enterprise adoption of AI Companion 3.0 and the $12-per-user Custom AI Companion, with Phone, Contact Center and Virtual Agent driving most growth.
  • Zoom repurchased about 5.1 million shares in the quarter and increased its buyback authorization by $1 billion, signaling confidence in its strategy.