Zoom Video Communications (ZM.US), a global leader in video communication technology, reported quarterly results and guidance that exceeded market expectations on Thursday after market close. The company provided stronger-than-expected annual revenue growth outlook and raised its full-year profit forecast, indicating that its expanded product suite embedded with generative AI tools is gaining traction among enterprise customers who are purchasing more of the company's expanded software offerings, driving the strongest revenue growth in 11 quarters.

In its guidance report released Thursday, Zoom stated that it expects total revenue of approximately $4.83 billion for the fiscal year ending next January. The company projects non-GAAP earnings per share in the strong growth range of $5.81 to $5.84. In comparison, Wall Street analysts had averaged expectations of approximately $4.8 billion in revenue and earnings per share of about $5.60.

The company's video conferencing and enterprise communication platform gained prominence during the global COVID-19 pandemic. As global COVID restrictions were gradually lifted, many consumers and small businesses chose to let their Zoom licenses lapse. In contrast, enterprise customers have largely retained the company's services, even as more employees returned to offices and Microsoft intensified competitive pressure with its Teams suite of enterprise products.

For the second quarter of fiscal 2026, the company's enterprise business sales grew 7% year-over-year to $730.7 million, above Wall Street analysts' average expectation of $716.7 million. Zoom reported that during this period, it had 4,274 customers who each contributed more than $100,000 in revenue over the past year.

Over recent years, the company has been diversifying its enterprise video communication business into a software platform suite with multiple business tools, including an innovative generative AI assistant. In its earnings conference following the report, Zoom stated that this "AI Companion feature" now has "millions" of monthly active users, representing a four-fold increase from the previous year.

Citi analyst Tyler Radke wrote: "This was an uncontroversial quarter for Zoom - growth rates are moving from stable to sustained growth, though the company will continue to face persistent growth headwinds."

Driven by strong performance and outlook, the stock, which closed at $73.17 in New York, rose approximately 5% in after-hours trading. However, Zoom's stock price has declined 10% year-to-date, significantly underperforming the S&P 500 and Nasdaq 100 indices.

Zoom CEO Eric Yuan stated: "We delivered a comprehensively strong second-quarter performance, achieving the highest level of year-over-year revenue growth in 11 quarters."

For the third calendar quarter ending July 31, Zoom's total revenue grew 4.7% to $1.22 billion. Adjusted quarterly earnings per share on a non-GAAP basis were $1.53, both significantly exceeding Wall Street average expectations.

**"AI + Video Communication" Becomes Zoom's New Software Label**

Bloomberg Intelligence analyst John Butler noted that Zoom's strong performance reflects expanding growth momentum, with newly launched paid AI features appearing to provide strong support for revenue and profits. However, full-year baseline revenue growth has been lackluster since the end of the COVID pandemic, with annual growth rates expected to remain around 3% for at least the next two years.

Zoom has deeply embedded generative/agentic AI capabilities into its communication and collaboration product lines (Meetings, Team Chat, Mail, Phone, Contact Center, etc.). The Zoom AI Companion, a platform-level AI assistant for the entire Zoom Workplace suite, is the most popular AI tool on Zoom's video communication platform, supporting automated meeting summary compilation, action item management, in-meeting Q&A, chat communication content and email composition, intelligent actionable chapter recording, and schedule coordination.

Zoom officially positions AI Companion as "agentic AI that can coordinate and execute multi-step operations," such as automatically organizing information, drafting and sending communications, triggering follow-up tasks, and AI-native document capabilities - converting meeting content into project briefs or minutes with one click, and generating/rewriting/summarizing within documents.

Zoom is gradually positioning AI Companion as the "engine" of its video communication workstation, emphasizing unified access across Meetings/Chat/Mail/Phone entry points. The company has recently attempted to expand AI Companion usage and coverage (across meetings, chat, documents, contact centers, phones), continuously updating and iterating executable agentic workflows and virtual agents, extending the video conferencing platform into an AI-driven business operation layer.

For Contact Center specialized features, Zoom has launched AI Expert Assist, which provides real-time knowledge and next-step recommendations for agents, conversation summaries, and intent recognition (management can configure in AI Studio; supports voice/message queues). The company has also introduced Virtual Agent/Phone digital reception: for example, the newly launched AI virtual agents/operators can handle natural language reception, appointments, inventory inquiries, etc., with no-code setup and multi-language support.