By Christopher Kuo

Zoom Communications raised its full-year outlook after posting higher first-quarter profit and revenue, driven by the growing popularity of its artificial intelligence tools.

The video conferencing company on Thursday raised its outlook for fiscal 2027 revenue and adjusted earnings. For the fiscal year 2027, the company guided for adjusted earnings of $5.96 to $6 a share and revenue of $5.08 billion to $5.09 billion. Analysts polled by FactSet are forecasting adjusted earnings of $5.88 a share on revenue of $5.08 billion for the year.

The company on Thursday logged a profit of $425.7 million, or $1.42 a share, compared with $254.6 million, or 81 cents a share, a year earlier.

Adjusted earnings came in at $1.55 a share. Analysts polled by FactSet expected $1.42 a share.

Revenue grew 5.5% to $1.24 billion, beating Wall Street's forecast of $1.22 billion. Enterprise revenue, which makes up most of Zoom's top-line, gained 7.2% to $755.7 million. Customers are gravitating to Zoom's AI tools, said Chief Executive Eric S. Yuan. Paid users of its built-in AI assistant grew 184% year over year, he said.

"Customers are increasingly adopting Zoom as an AI-first system of action for modern work," Yuan said.

Zoom anticipates second-quarter adjusted earnings of $1.45 to $1.47 a share and revenue up to $1.27 billion. Analysts polled by FactSet are expecting adjusted earnings of $1.49 a share on revenue of $1.27 billion.

Write to Christopher Kuo at chris.kuo@wsj.com

(END) Dow Jones Newswires

May 21, 2026 16:28 ET (20:28 GMT)

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