Particle.news
Download on the App Store

Zoom Tops Q1 Estimates and Raises FY27 Targets

Management said rapid AI feature adoption and stronger enterprise sales prompted the upgraded outlook and buyback authorization.

Overview

  • Zoom reported first‑quarter adjusted earnings of $1.55 per share and revenue of $1.24 billion, beating Street estimates.
  • The company raised fiscal 2027 revenue guidance to $5.08–$5.09 billion and lifted adjusted EPS to $5.96–$6.00 while authorizing an additional $1 billion share buyback.
  • Executives highlighted AI traction as a growth lever, saying paid users of AI Companion grew 184% year over year and My Notes reached 1.5 million licensed users.
  • Enterprise momentum strengthened with enterprise revenue up 7.2% to $755.7 million, 4,534 customers now each contributing more than $100,000 in trailing 12‑month revenue, and a 99% net dollar expansion rate.
  • Zoom generated roughly $500 million in free cash flow for the quarter and held about $7.7 billion in cash and marketable securities, which funded the buyback and helped drive a double‑digit stock re‑rating and higher analyst price targets.