Shares in Zoom Communications Inc. rose nearly 4% in late trading today after the online communications company reported earnings and revenue beats in its fiscal 2026 third quarter.

For the quarter that ended on Oct. 31, Zoom reported adjusted earnings per share of $1.52, up from $1.38 per share in the same quarter of the previous fiscal year, on revenue of $1.23 billion, up 4.4% year-over-year. Both figures were ahead of the $1.44 per share and revenue of $1.21 billion expected by analysts.

Zoom saw enterprise revenue in the quarter of $741.4 million, up 6.1% year-over-year, adjusted income from operations of $507 million, up from $457.8 million in the same quarter of the previous fiscal year, and cash flow of $629.3 million, up from $483.2 million the year prior.

Key to the strong figures was customer growth, as the number of customers contributing more than $100,000 in trailing 12-month revenue grew 9% year-over-year, to 4,353.

Business highlights in the quarter included Zoom launching its AI Companion 3.0 in September. The artificial intelligence companion is designed to help users deliver high-quality work by providing insights and intelligent assistance and includes a number of updates that enhance its AI agent capabilities with new custom agents, a new low-code builder platform and lifelike AI avatars.

Zoom also held its annual Zoomtopia Conference that saw a major shift in focus toward generative and agentic AI across the company’s platform. Along with the Zoom AI Companion 3.0, Zoom unveiled a new assistant called Zoomie that’s designed for meeting rooms and hybrid-work scenarios, featuring voice controls, photorealistic avatars and proactive suggestions for meeting preparation.

The company also revealed new customer service and sales workflows with several updates. Webinars now include an “Ask AI Companion” feature enabling late-arriving or returning attendees to ask for summaries and context. The contact-center suite obtained enhanced analytics across customer experience channels to surface insights and drive staffing or self-service recommendations.

“This quarter we announced AI Companion 3.0 and we’re thrilled to see AI Companion adoption grow meaningfully,” said founder and Chief Executive Eric S. Yuan said in the company’s earnings release. “We’re also seeing strong momentum with Custom AI Companion and our AI‑first Customer Experience suite, which helped make this one of our best CX quarters, with broad AI adoption across major deals.”

For its fiscal 2026 fourth quarter, Zoom expects adjusted earnings per share of $1.48 to $1.49 on revenue of $1.23 billion to $1.235 billion. For its full fiscal year, the company expects adjusted earnings of $5.95 to $5.97 per share and revenue of $4.852 billion to $4.857 billion.

Image: Zoom