Zoom shares rise as Q1 earnings beat, guidance impresses

Published 21/05/2025, 21:14

Investing.com -- Zoom Video Communications Inc (NASDAQ:ZM) reported better-than-expected first quarter earnings and issued strong guidance, sending its shares up 2.7% in after-hours trading.

The video conferencing giant posted adjusted earnings per share of $1.43, surpassing analyst estimates of $1.31. Revenue for the quarter came in at $1.17 billion, in line with consensus expectations and up 2.9% YoY.

Zoom’s outlook for the current quarter and full fiscal year 2026 exceeded Wall Street projections. The company forecasts Q2 adjusted EPS of $1.36-$1.37 on revenue of $1.195-$1.2 billion, above analyst estimates of $1.34 EPS and $1.192 billion in revenue. For fiscal 2026, Zoom sees adjusted EPS of $5.56-$5.59 on revenue of $4.8-$4.81 billion, topping consensus of $5.37 EPS and $4.788 billion in revenue.

"We delivered another solid quarter, exceeding guidance in both revenue and profitability — a testament to the strength of our platform and AI-first innovation," said Eric S. Yuan, Zoom’s founder and CEO.

Enterprise revenue grew 5.9% YoY to $704.7 million, while online revenue dipped 1.2% to $470 million. The company reported 4,192 customers contributing over $100,000 in trailing 12-month revenue, up 8% from the previous year.

Zoom maintained strong profitability with a non-GAAP operating margin of 39.8%. The company also accelerated its share repurchase program, buying back approximately 5.6 million shares in Q1.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.