Stock Track | Zoom Soars 7.83% After-Hours on Q1 Earnings Beat, Raised Guidance and AI Momentum

Stock Track
May 22

Zoom Video Communications Inc. (ZM) experienced a significant surge of 7.83% in after-hours trading on Thursday, driven by the company's strong fiscal first-quarter 2027 financial results that surpassed market expectations.

The video conferencing leader reported adjusted earnings per share of $1.55, beating the analyst consensus estimate of $1.42, while revenue grew 5.5% year-over-year to $1.24 billion, exceeding the $1.22 billion forecast. The company also raised its full-year guidance, now projecting adjusted EPS of $5.96 to $6.00 on revenue of $5.08 billion to $5.09 billion.

Central to the positive investor sentiment was the explosive growth in Zoom's artificial intelligence offerings. Paid users for its AI Companion assistant surged 184% from the prior year, with CEO Eric Yuan highlighting that "customers are increasingly adopting Zoom as an AI-first system of action for modern work." Additionally, enterprise revenue increased 7.2%, and the company authorized an additional $1.0 billion for share repurchases, underscoring management's confidence in its financial position and future prospects.

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