In a clear sign of how swiftly enterprise technology is adapting to hybrid working models, Zoom Video Communications has raised its full-year guidance, citing accelerated demand for artificial intelligence tools and hybrid-work solutions.
Zoom’s revised forecast sees fiscal 2026 revenue expected between US$4.85 billion and US$4.86 billion, up from the previous guidance of US$4.83 billion to US$4.84 billion. Adjusted profit per share is now expected at US$5.95 to US$5.97, compared with prior guidance of US$5.81 to US$5.84. The company also increased its share buyback authority by US$1 billion, signalling confidence in its growth outlook.
Revenue for the quarter reached US$1.23 billion, outperforming consensus estimates of around US$1.21 billion, while adjusted earnings of US$1.52 per share beat the US$1.44 forecast. The market responded favourably, with Zoom shares rising by 3.5% in after-hours trading.
The rationale behind the uptick is rooted in structural changes to workplace practices. As organisations transition from pandemic-era emergency arrangements to long-term hybrid work models, they are seeking more integrated platforms that support communication, collaboration, and intelligent automation. Zoom is positioning itself to capture that demand by embedding AI features across its product suite and by extending its service offerings beyond simple video meetings.
Chief Executive Officer Eric Yuan pointed to strong momentum with new offerings such as Zoom Phone, Contact Centre and Virtual Agent, noting that “Custom AI Companion and our AI-first Customer Experience suite… helped make this one of our best CX quarters, with broad AI adoption across major deals.” In other words, the era when AI was confined to proofs-of-concept is giving way to enterprise buyers demanding clear business outcomes, and Zoom is refashioning itself not as a pure-play meeting tool but as a broader workflow and customer-experience platform.
Industry analysts echo that view. Rebecca Wettemann, chief executive of Valoir, said that as companies move “beyond AI science projects to demanding clear business outcomes, Zoom’s AI Companion is included in eligible paid plans, making it an attractive foundation for future AI monetisation efforts while driving adoption.” The message: organisations want solutions that deliver measurable value, such as automating workflows, improving customer-touchpoint interactions, and accelerating decision-making, and Zoom is banking on this shift.
The tie-up with Nvidia further underscores that ambition. Zoom announced a partnership to incorporate Nvidia’s “Nemotron” open-source technologies to support AI Companion 3.0 across industries such as finance, healthcare and government. This move reflects the farming-out of AI infrastructure to specialist vendors (like Nvidia) while communications and workflow platforms (like Zoom) build the services layer. It’s a strategic bet that in a world of hybrid work and distributed teams, the integrator of AI and communication technology may enjoy outsized returns.
From a business-strategy perspective, the shift has several noteworthy implications. First, Zoom’s attempt to embed AI into its service tiers is a move from being a “meetings utility” to a platform-based revenue model. The fact that the AI Companion is included in eligible paid plans means that adoption isn’t gated only to top-tier customers; it can scale. Second, the broader hybrid work environment means that companies are rethinking how they equip teams—not simply with a videoconferencing license but with workflow automation, contact centre capabilities, and virtual agents embedded in the communications fabric. Zoom is tapping that pivot.
Thirdly, the increased share-buyback programme signals management’s confidence that the stock is undervalued or that the return on internal investment is strong. In a technology market crowded with AI plays, Zoom is staking its future on being the communications and workflow layer for hybrid organisations.
Zoom’s improved outlook reflects the wider shift towards smarter, more integrated communication tools in a mature hybrid-work era. Its AI-driven strategy and expanding service offerings position it well, but strong execution will ultimately determine whether this momentum becomes long-term growth.
