TLDR
- Zoom beat Q1 earnings with adjusted EPS of $1.55 vs. $1.42 expected
- Revenue grew 5.5% year-over-year to $1.24 billion, above Wall Street’s $1.22 billion estimate
- Paid AI Companion users surged 184% year-over-year
- Enterprise revenue climbed 7.2% to $755.7 million
- Full-year fiscal 2027 guidance raised above analyst consensus on both EPS and revenue
Zoom Video Communications (ZM) stock jumped more than 7% in premarket trading Friday after the company posted better-than-expected fiscal first-quarter results and lifted its full-year outlook.
The stock was up 7.8% in premarket, adding to a 12% gain already logged in 2026.
Adjusted earnings came in at $1.55 per share for the quarter ended April 30. That beat the analyst consensus of $1.42 by $0.13.
ZOOM $ZM JUST REPORTED Q1 EARNINGS
Q1:
– Revenue: $1.24B vs $1.22B est 🟢
– Operating margin: 25.1%
– Adj operating margin: 41.1%Guidance:
– FY revenue: $5.08B-$5.09B vs $5.07B est 🟢
– FY adj EPS: $5.96-$6.00 vs $5.87 est 🟢
– FY free cash flow: $1.70B-$1.74B
– Q2 revenue:… pic.twitter.com/AkXYaJ5Ceq— WOLF (@WOLF_Financial) May 21, 2026
Revenue reached $1.24 billion, up 5.5% year-over-year and ahead of Wall Street’s $1.22 billion estimate.
CEO Eric Yuan credited AI adoption as a key driver. “Customers are increasingly adopting Zoom as an AI-first system of action for modern work,” he said in the earnings release.
Paid users of Zoom’s AI Companion product grew 184% compared to the same period last year. The company’s “My Notes” AI feature reached 1.5 million licensed users within just four months of launch.
Enterprise Momentum
Enterprise revenue grew 7.2% year-over-year to $755.7 million. The trailing 12-month net dollar expansion rate for enterprise customers ticked up to 99%, from 98% in the prior-year quarter.
Zoom now counts 4,534 customers generating more than $100,000 in trailing 12-month revenue, up 8.2% year-over-year.
Free cash flow for the quarter was $500.5 million, up from $463.4 million a year ago.
Zoom’s board also authorized an additional $1.0 billion stock repurchase program on top of $625 million remaining from a prior authorization.
Guidance
For Q2, Zoom guided for adjusted EPS of $1.45 to $1.47, slightly below the $1.49 analyst consensus. Revenue guidance of $1.265 billion to $1.27 billion was roughly in line with expectations.
For the full fiscal year 2027, Zoom raised its EPS outlook to $5.96–$6.00, ahead of the $5.87 analyst consensus. Full-year revenue is now expected between $5.08 billion and $5.09 billion, above the $5.07 billion Wall Street forecast.
Morgan Stanley analysts noted the “path to re-rating hinges on durably higher growth,” adding that “Zoom’s Q1 showed stable growth at scale with strong margins, but FY27 growth remains mid-single digits.”
Yuan pointed to the broader AI push as central to the company’s plan. “We remain focused on turning AI innovation into durable growth, measurable customer value, and long-term shareholder returns,” he said.
