Shares of Zoom Communications Inc. inched up a fraction of a point in late trading today after the online communications company reported earnings and revenue beats in its fiscal year 2026 first quarter.

For the quarter ended April 30, Zoom reported adjusted earnings per share of $1.43, up from $1.35 per share in the same quarter of the previous fiscal year, on revenue of $1.175 billion, up 3% year-over-year. Earnings came in ahead of the $1.31 per share expected by analysts and revenue was ahead of an expected $1.166 billion.

Zoom ended the quarter with 4,192 customers contributing more than $100,000 in trailing-12-month revenue, up 8% year-over-year and the company reported a trailing-12-month net dollar expansion rate for enterprise customers of 98%.

Net cash flow in the quarter came in at $489.3 million, down from $588.2 million in the first quarter of the previous fiscal year and Zoom ended the quarter with $7.8 billion in cash, cash equivalents and marketable securities on hand.

Business highlights in the quarter included a major expansion of Zoom’s AI Companion, which added more than 45 new features across its platform. The new features included automated shift summaries, meeting clip generation and deeper functionality via the new offering called Zoom AI Studio, which allows organizations to build custom AI agents tailored to specific workflows.

The quarter also saw the launch of Zoom Workplace for Frontline, a mobile-first solution aimed at supporting the global frontline workforce across industries like healthcare, retail and manufacturing. The solution includes real-time activity feeds, automatic shift-based chat groups, push-to-talk communication, and AI-powered features such as shift reporting and smart search.

Another notable release was the introduction of Custom AI Companion functionality. The offering allows organizations to create AI assistants that integrate directly into their workflows, offering task automation, contextual insights and enhanced personalization for different departments and roles.

“We delivered another solid quarter, exceeding guidance in both revenue and profitability — a testament to the strength of our platform and AI-first innovation,” founder and Chief Executive Eric S. Yuan (pictured) said in the company’s earnings release. “In an uncertain macroeconomic environment, customers are turning to Zoom to drive efficiency, improve customer and employee experiences and future-proof their businesses.

For its fiscal 2026 second quarter, Zoom expects adjusted earnings per share of $1.36 to $1.37 on revenue of $1.195 billion to $1.2 billion. The revenue outlook was ahead of the $1.193 billion expected by analysts. For its full fiscal year, Zoom expects adjusted earnings of $5.56 to $5.59 per share on revenue of $4.8 billion to $4.81 billion.

Image: Zoom