Title

Earning Preview: Zoom this quarter’s revenue is expected to increase by 4.44%, and institutional views are bullish

Abstract

Zoom Video Communications, Inc. will report fiscal fourth-quarter results on February 25, 2026 Post Market, with consensus pointing to steady growth and resilient margins; this preview consolidates the latest quarter’s performance, current-quarter forecasts, segment dynamics, and the prevailing institutional stance.

Market Forecast

Consensus estimates for Zoom Video Communications, Inc. indicate fiscal fourth-quarter revenue of $1.23 billion and adjusted EPS of $1.49, alongside EBIT of $482.12 million, reflecting year-over-year growth of 4.44% for revenue, 14.26% for adjusted EPS, and 7.91% for EBIT; gross margin and net margin guidance is not disclosed in the current-quarter forecast. The main collaboration suite’s expected performance centers on enterprise adoption and AI-driven feature uptake, supporting stable top-line growth with profitability underpinned by operating efficiency.

Last Quarter Review

In fiscal third quarter, Zoom Video Communications, Inc. delivered revenue of $1.23 billion, a gross profit margin of 77.90%, GAAP net profit attributable to the parent company of $613.00 million, a net profit margin of 49.83%, and adjusted EPS of $1.52, with revenue up 4.44% year over year and adjusted EPS up 10.15% year over year. GAAP net profit rose 70.91% quarter-on-quarter, reflecting tight cost management and strong operating leverage. Core collaboration revenue totaled $1.23 billion, rising 4.44% year over year as enterprise seat expansions, subscriptions durability, and product attachments steadied the portfolio.

Current Quarter Outlook

Main Business: Collaboration Suite

The collaboration suite—anchored by meetings, webinars, and team communications—remains the center of the company’s top-line and earnings engine this quarter. With revenue expected at $1.23 billion and adjusted EPS forecast at $1.49, the setup implies sustained adoption across enterprise accounts as new capabilities, including AI-assisted workflows, increase daily utility and broaden the platform’s use cases. The model continues to benefit from disciplined operating expense control, which, coupled with high gross margins last quarter, supports an earnings framework that can absorb moderate variability on the top line while maintaining efficiency.

Renewal dynamics and seat expansions will likely be closely watched. The commentary around contract timing and price realization is set to be a key determinant of whether revenue growth can nudge above the 4.44% year-over-year expectation, as incremental product attachments across communications and productivity drive per-customer monetization. The collaboration suite’s contribution to EBIT is equally important; the $482.12 million EBIT forecast implies stable operating leverage as costs scale slower than revenue. The balance between product development investment and sales efficiency will shape whether margins remain near the high levels recorded last quarter.

Another focus within the core suite is the usage and engagement characteristics that underpin retention. Management’s signals on engagement patterns—such as frequency of meetings, webinar utilization, and collaboration touchpoints—can indicate whether platform stickiness is strengthening. If the company highlights improvements in retention and attach rates, it could support a constructive read-through for consistent mid-single-digit revenue growth and double-digit EPS expansion, matching the current-quarter consensus profile. Conversely, any signs of softness in smaller customer cohorts or delayed expansions may temper growth velocity even if margins stay robust.

Most Promising Business: AI Platform and Customer Experience

The AI-led platform evolution—spanning the AI Companion and customer experience solutions including Contact Center and Virtual Agent—presents the largest incremental growth potential in the near term. Recent analyst checks indicate stronger spending trends for AI Companion 3.0 relative to earlier iterations, aligning with the broader enterprise focus on workflow automation and productivity. While AI feature adoption does not immediately translate one-for-one into revenue, the increased use cases and deeper solution penetration improve opportunities for up-sell and cross-sell, which can support the company’s revenue trajectory even in a measured demand environment.

The customer experience portfolio has become a differentiating pillar with the capability to unify communications with AI-driven service workflows. The strategy emphasizes tying conversational AI and agent productivity tools into existing communications channels, offering end-to-end value across organizations that wish to consolidate vendors and streamline operations. Analysts have highlighted healthy growth patterns in the communications expansion lines, including Zoom Phone, which continues to show solid double-digit growth on an ARR basis; the interplay between CX, voice, and AI could materially expand wallet share as deployment scales across mid-to-large enterprises.

Monetization will be the central theme investors assess in this area. Clear commentary on pricing structures, seat-based licensing, and consumption-linked extensions can help quantify revenue impact over the coming fiscal year. If management articulates a roadmap that indicates growing paid adoption of AI-enriched customer experience tools, it may support upside potential to the current 4.44% revenue growth expectation. In addition, transparency on go-to-market progress across verticals—particularly regulated industries and large-scale contact operations—could increase confidence in the durability of this expansion vector.

Key Stock Price Drivers This Quarter

Stock performance around the print will hinge on three tightly linked elements: revenue growth versus the 4.44% year-over-year benchmark, earnings quality around the $1.49 adjusted EPS estimate, and forward guidance for fiscal performance. A revenue beat, even modest, can be amplified by high gross margins and EBIT discipline, reinforcing the earnings power signaled last quarter. However, if the top line tracks precisely on expectations, investors will scrutinize the cadence of enterprise demand and the contribution from expansion products to assess whether growth is primed to accelerate or remain stable in the mid-single digits.

Margin durability is another critical lever. Last quarter’s 77.90% gross margin and 49.83% net margin provided a strong baseline; while the company has not issued explicit margin guidance for the current quarter, consistent cost scaling relative to revenue could maintain elevated profitability. Investors will parse commentary on R&D investment for AI initiatives and sales efficiency metrics to gauge margin direction. A reaffirmation of operating discipline alongside visible product adoption signals—especially for AI Companion, phone, and CX—would likely support the case for upside on EPS versus the 14.26% year-over-year growth embedded in consensus.

Forward-looking commentary and pipeline detail will shape the post-print reaction. Updates on enterprise deal cycles, attach rates across the suite, and measured progress in AI monetization can frame whether fiscal-year growth will track toward steady mid-single-digit revenue expansion or break higher. Additionally, observations on churn and the balance between new logos and expansions will help triangulate the sustainability of growth beyond the quarter. A constructive guide paired with confirmation of product traction across AI-driven initiatives could underpin a favorable rerating by investors focused on durable profit growth and platform breadth.

Analyst Opinions

Across the qualified period from January 1, 2026 to February 18, 2026, the majority of institutional commentary is bullish, with notable upgrades and reaffirmations underpinning a constructive view of the quarter; the ratio of bullish to bearish opinions is skewed decisively toward bullish. Wolfe Research upgraded Zoom Video Communications, Inc. to Outperform with a price target of $115, citing improving fundamentals and the expanding scope of the platform’s AI and customer experience ambitions. Wedbush reiterated its Outperform stance and raised its price target to $110, highlighting stronger spending trends for AI Companion 3.0 and solid double-digit growth in Zoom Phone on an ARR basis, which together suggest increasing wallet share across enterprise customers.

Further support for the constructive view was reflected in buy-rated commentary emphasizing disciplined execution and the growing breadth of the product suite. Baird reaffirmed its positive stance, noting the strategic importance of AI investments and the potential for value creation as enterprise adoption deepens through integrated communications and customer experience capabilities. In parallel, consensus metrics compiled across recent previews indicate an average rating that is overweight and mean price targets clustered around the high-$90s, reinforcing expectations for steady progress in both top-line expansion and earnings power.

The bullish camp’s core thesis centers on three pillars. First, workflow expansion via AI Companion and the integration of AI into customer experience workloads are seen as durable drivers of platform adoption, supporting revenue growth above the base collaboration demand profile. Second, the communications expansion lines—particularly Zoom Phone and related CX offerings—continue to carve out a larger share of customer spending, contributing incremental ARR growth with favorable cross-sell dynamics. Third, the company’s operating discipline, coupled with historically high gross margins, provides a resilient foundation for double-digit adjusted EPS growth, even in a measured top-line environment.

Analysts also emphasize how product packaging and go-to-market refinement can increase platform penetration. Clearer monetization pathways for AI-driven features, bundled offerings that connect collaboration with voice and CX, and continued investments in product reliability and usability are cited as differentiators in competitive enterprise environments. When combined with rising AI feature engagement and expanding deployments, these elements support the view that the quarter’s outcome can meet or modestly exceed expectations, while guidance could signal a constructive trajectory into the new fiscal year.

In sum, the majority view anticipates a quarter that validates the platform expansion strategy and underlines earnings resilience. The interplay of stable collaboration revenues, accelerating adoption of AI and CX solutions, and disciplined cost control sets up well for Zoom Video Communications, Inc. to deliver on the $1.23 billion revenue and $1.49 adjusted EPS forecasts. Should management reinforce visibility into AI monetization and highlight sustained strength in communications and customer experience products, the bullish thesis finds additional support, with price targets reflecting confidence in multi-product momentum and earnings durability.