Zoom Video Communications (ZM) saw its stock price plummet 5.14% in pre-market trading on Tuesday, following the company's disappointing revenue guidance for the upcoming fiscal year. The video conferencing platform's revenue outlook missed analysts' estimates, reflecting the challenges it faces in an environment where employers are gradually moving away from hybrid work models and mandating a return to the office five days a week.

Despite reporting a 3% year-over-year increase in revenue to $1.184 billion for the fourth quarter of fiscal 2025, Zoom's projected revenue for the first quarter and full fiscal year 2026 fell short of expectations. The company expects Q1 revenue between $1.16 billion and $1.17 billion, missing analysts' consensus of $1.18 billion, and full-year revenue between $4.79 billion and $4.8 billion, lower than the expected $4.81 billion.

The downbeat guidance highlights the slowing demand for Zoom's services as major companies like JPMorgan Chase, Amazon, and AT&T have mandated a five-day office week, reducing the need for video conferencing calls. While Zoom reported solid fourth-quarter results, including a 6% growth in enterprise revenue and record-low online customer churn, its growth prospects have been hampered by the changing work environment and the gradual return to in-person meetings.