Zoom slumps on weaker-than-expected profit outlook, reports mixed Q4 earnings
Zoom fell 4% in premarket trading on Thursday after offering a profit outlook that came in lower than analysts had expected as part of its FY26 Q4 earnings results.
For the fiscal year ending in January 2027, the video conferencing platform expects:
Adjusted earnings per share between $5.77 and $5.81, missing analysts’ average projection of $6.06 a share, per Bloomberg data.
Revenue between $5.065 billion and $5.075 billion.
The weak bottom-line forecast came after lackluster adjusted profit results for Q4, which came in at $1.44 per share, compared with Wall Street estimates of $1.49. Revenue increased 5% year on year to $1.25 billion, just ahead of average analyst expectations.
The company maintained an optimistic tone on its mixed FY26 results, with CEO Eric S. Yuan saying on the earnings call, “In the age of AI, Zoom becomes more essential. We are building the system of action that turns conversations into coordinated execution across work inside the organization and with the world outside, including customer engagement, sales, recruiting, and more.”
Indeed, Zoom has been doubling down on its office collaboration tools recently as it continues to turn toward serving enterprises after the pandemic boom, including launching a corporate phone system and a customer service platform, both of which can sometimes be heavily dependent on expensive AI models.
