Driven by hybrid work trends and AI integration in its products, Zoom Communications (ZM) raised its full-year revenue and profit guidance on Monday. The stock climbed 9% in early Tuesday trading.

To capitalize on hybrid work demand, Zoom is expanding AI capabilities across its product suite and diversifying services. New offerings like Zoom Phone, Contact Center, and Virtual Agent have become key revenue drivers.

CEO Eric Yuan noted, "Our Custom AI Companion and AI-first Customer Experience suite gained strong traction. These products not only delivered one of our best CX quarters but also accelerated AI adoption in major collaborations."

Demand for autonomous AI agents continues rising as businesses adopt the technology to automate workflows. Rebecca Wettemann, CEO of Valoir, observed, "AI is no longer experimental—companies demand tangible outcomes. Zoom’s inclusion of AI Companion in eligible paid plans lays groundwork for monetization and broader implementation."

Zoom now expects fiscal 2026 revenue between $4.85B-$4.86B, up from prior guidance of $4.83B-$4.84B. Adjusted EPS is projected at $5.95-$5.97 versus $5.81-$5.84 previously. The company also added $1B to its stock repurchase program.

A partnership with Nvidia will integrate Nemotron technology to power Zoom’s AI Companion 3.0 for sectors like finance and healthcare.

Q3 revenue hit $1.23B, surpassing the $1.21B consensus, while adjusted EPS of $1.52 topped the $1.44 estimate (LSEG data).