Zoom Communications reported fourth-quarter earnings and revenue that topped estimates as enterprise sales growth marked a bright spot. Fiscal 2026 revenue guidance for Zoom stock came in slightly below expectations. ZM stock dipped.
The software maker reported earnings after the market close on Monday.
Zoom earnings for the January-ended fourth quarter were $1.41 per share on an adjusted basis, down a penny from a year earlier. Revenue rose 3.3% to $1.184 billion.
Zoom stock analysts had projected earnings of $1.30 a share on sales of $1.179 billion.
"Zoom posted a beat on revenue of 1%, although the magnitude was more modest vs. Q3," said Jefferies analyst Samad Samana in a report. "The fiscal 2026 revenue growth outlook was consistent with commentary given last quarter, but currency was a headwind. Investors did not get the accelerating growth they were looking for, but we believe Zoom is entering fiscal 2026 on solid footing with a path to upside."
ZM Stock: Enterprise A Bright Spot
In the enterprise market for business customers, revenue rose nearly 6% to $706.8 million.
On the stock market today, Zoom stock dipped 3.5% to 78.25 in early trading.
"While we would like to see stronger growth acceleration from the company, we are encouraged by the momentum in the enterprise segment, traction with AI Companion, lower churn rates, and progress with new products like contact center," said William Blair analyst Arjun Bhatia in a report.
For full-year 2025, Zoom said it expects revenue of $4.79 billion at the midpoint of guidance, slightly below estimates of $4.81, up 3%. The company forecast EPS of $5.34 to $5.37, in line with estimates of $5.36.
Zoom's cloud-based software sets up video calls, with chat tools available. Zoom aims to morph into a broader communications platform for business customers. Zoom Video has been integrating artificial intelligence into more products. Many software companies are shifting to AI agents.
Also, Zoom holds $7.5 billion in cash on its balance sheet.
Meanwhile, Microsoft with its Teams communication platform is a big competitor.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
