Zoom Video Communications (ZM.US) experienced a sharp decline at Thursday's market open, falling more than 14% to $73.11 per share. The drop followed the company's fourth-quarter earnings missing analyst expectations and the issuance of a profit forecast for fiscal year 2027 that fell short of estimates.

For the fourth quarter, the video communications provider reported adjusted earnings per share of $1.44, which was $0.05 below the consensus analyst estimate of $1.49. Revenue reached $1.25 billion, surpassing expectations of $1.23 billion and representing a 5.3% increase year-over-year. Enterprise revenue grew 7.1% to $757.3 million compared to the previous year, while the number of customers contributing over $100,000 in trailing 12-month revenue increased by 9.3% to 4,468.

Looking ahead to the first quarter of fiscal year 2027, Zoom provided an adjusted EPS forecast ranging from $1.40 to $1.42. The midpoint of this guidance, $1.41, is below the analyst consensus estimate of $1.45. The company anticipates first-quarter revenue between $1.22 billion and $1.225 billion, with a midpoint of $1.223 billion slightly above the consensus estimate of $1.221 billion.

For the full fiscal year 2027, Zoom guided adjusted EPS in the range of $5.77 to $5.81. The midpoint of this guidance, $5.79, is significantly lower than the analyst consensus of $5.97. However, the company's revenue guidance for the year is between $5.065 billion and $5.075 billion, with a midpoint of $5.07 billion exceeding the consensus estimate of $4.838 billion.