Zoom stock declined 5.03% in pre-market trading on Tuesday, following a disappointing revenue outlook for the first quarter and full fiscal year 2026. The video conferencing company expects Q1 revenue between $1.16 billion and $1.17 billion, missing analysts' estimates of $1.18 billion, as companies are gradually moving away from hybrid work models amid the return-to-office mandate.

The downbeat guidance reflects the challenges Zoom is facing in an environment where employers are increasingly requiring employees to work from the office five days a week. Major companies like JPMorgan Chase, Amazon, and AT&T have mandated a five-day office week, reducing the demand for video conferencing calls.

Despite the revenue growth concerns, Zoom reported solid fourth-quarter results, with revenue growing 3% year-over-year to $1.184 billion, driven by strong enterprise demand and record-low online customer churn. The company also highlighted its strategic investments in AI capabilities, with the adoption of Zoom AI Companion accelerating at a 68% quarter-over-quarter growth in monthly active users.