Zoom Communications announced on Wednesday it has raised its annual revenue forecast, benefiting from hybrid work trends and the successful integration of artificial intelligence into its product suite.
The company now expects fiscal 2026 revenue between $4.80 billion and $4.81 billion, above its prior forecast of $4.79-$4.80 billion. This positive outlook sent Zoom shares up 2% in extended trading.
"In an uncertain macro-economic environment, customers are turning to Zoom to drive efficiency, improve customer and employee experiences, and future-proof their businesses," said CEO Eric Yuan in the earnings announcement.
Zoom's strategic AI pivot has been central to its continued growth. In March 2025, the company unveiled agentic AI Companion capabilities and new AI skills across its platform. These features enable the AI assistant to perform multi-step actions on behalf of users, orchestrating tasks like scheduling meetings, generating video clips, and creating documents.
The AI Companion, which has been enabled on more than 4 million accounts since launching in September 2023, helps users synthesize information from multiple sources, including Microsoft Outlook or Google Mail and Calendar accounts. According to company estimates, using AI Companion could save employees up to 6 hours per week.
Despite facing intense competition from Microsoft Teams, which has grown its market share to approximately 32% (up from 24.57% in 2023), Zoom maintains its leadership position with about 56% of the video conferencing market. This competitive edge is largely attributed to Zoom's user-friendly interface and its expanding AI capabilities that are included at no additional cost with paid subscriptions.
The company's enterprise segment continues to show particular strength, with enterprise revenue growing nearly 6% year over year and now representing 59% of total revenues. Analysts expect Zoom's AI-first strategy, enterprise momentum, and new product initiatives to create multiple pathways for growth in 2025 and beyond.