Zoom (ZM) Stock Jumps 7% After Q1 Earnings Top Estimates

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.

Zoom Communications, Inc., ZM

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.

Revenue reached $1.24 billion, up 5.5% year-over-year and ahead of Wall Street’s $1.22 billion estimate.

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.”

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