On May 22, Zoom rose 7.83% overnight, trading at $104.33/share. The rally was driven by the release of its fiscal year 2027 first-quarter earnings report, which delivered results that significantly exceeded market expectations.

Zoom reported adjusted diluted earnings of $1.55 per share, surpassing the analyst consensus estimate of $1.42 by 9.15%, and up from $1.43 a year earlier. Revenue rose to $1.239 billion from $1.17 billion year-over-year, beating the expected $1.223 billion. The company also raised its full-year outlook to non-GAAP diluted EPS of $5.96 to $6.00 on revenue of $5.08 billion to $5.09 billion, up from prior guidance of $5.77 to $5.81 EPS on revenue of $5.065 billion to $5.075 billion. AI user growth tripled year-over-year, signaling a structural shift in the business. Additionally, Citi recently raised its target price on Zoom from $106 to $122, maintaining a buy rating, reflecting institutional optimism toward the company's AI commercialization prospects.

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