Zoom Video Communications' stock surged 5.06% in pre-market trading on Tuesday, following the company's impressive third-quarter results and an upward revision of its annual forecast. The video conferencing giant continues to benefit from persistent hybrid work trends and the successful integration of artificial intelligence into its product offerings.

Zoom reported third-quarter revenue of $1.23 billion, surpassing analyst expectations of $1.21 billion. The company's adjusted earnings per share came in at $1.52, also beating the forecasted $1.44. This strong performance was driven by a 6.1% year-over-year increase in enterprise revenue and a growing customer base, with Zoom ending the quarter with 4,363 large customers.

In response to the robust results, Zoom raised its fiscal 2026 outlook. The company now expects annual revenue between $4.85 billion and $4.86 billion, up from its previous forecast of $4.83 billion to $4.84 billion. Similarly, Zoom increased its annual adjusted earnings per share guidance to between $5.95 and $5.97, compared to the earlier projection of $5.81 to $5.84. This optimistic outlook reflects Zoom's confidence in its strategic direction, particularly its focus on AI integration and expansion of its product suite beyond video conferencing.

Analysts have responded positively to Zoom's results and outlook. RBC Capital Markets highlighted the expanding AI adoption, improving online retention, and strong free cash flow conversion as key factors supporting their optimistic view for Zoom's fiscal 2027. The company's success in leveraging AI to enhance its offerings and adapt to evolving work trends has clearly resonated with investors, as reflected in the pre-market stock surge.