Shares in Zoom Communications Inc. slumped nearly 3% in late trading today after the online communications company fell short of fiscal fourth-quarter earnings expectations and also missed on its first quarter and full-year earnings outlooks.

For the quarter that ended on Jan. 31, Zoom reported adjusted earnings per share of $1.44, up from $1.41 per share in the same quarter of the previous fiscal year, on revenue of $1.247 billion, up 5.3% year-over-year. The company’s earnings fell short of $1.49 per share expected by analysts, while revenue came in ahead of an expected $1.23 billion.

In the quarter, Zoom saw enterprise revenue of $757.3 million, up 7.1% year-over-year and customers spending more than $100,000 in trailing 12-month revenue was up 9.3% year-over-year.

Net cash provided by operating activities came in at $354.5 million, down from $424.6 million in the same 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 brand and workplace initiative aimed at strengthening Zoom’s positioning beyond video meetings and reinforcing its identity as a broader work platform provider. The company emphasized employee empowerment and culture as part of its long-term strategy to signal to enterprise customers and investors that it is focused not only on product innovation but also on organizational alignment and go-to-market execution as competition intensifies in collaboration software.

In mid-December, Zoom also unveiled AI Companion 3.0, the latest iteration of its workplace assistant that pushes the platform beyond meeting summaries into agentic workflows, low-code automation and federated AI orchestration across the browser and desktop. The AI Companion combines multiple generative AI functions that touch every part of employee knowledge and daily work and provides intelligent assistance, new skill updates, a low-code agent builder and greater opportunities for interaction.

For its full 2026 fiscal year, Zoom reported adjusted earnings per share of $5.92 per share, up from $5.54 the year prior, on revenue of  $4.869 billion, up 4.4% year-over-year.

“In Q4, we saw accelerating, high-double-digit growth in Zoom Customer Experience, with paid AI included in each of our top 10 CX deals, underscoring the value of live context and automated follow-through,” founder and Chief Executive Eric S. Yuan said in the company’s earnings release. “As we enter FY27, we expect to surpass the $5 billion revenue milestone and remain focused on delivering durable, profitable growth and long-term shareholder returns.”

For its fiscal 2027 first quarter, Zoom expects adjusted earnings per share of $1.40 to $1.42 on revenue of $1.22 billion to $1.225 billion. The earnings outlook fell short of the $1.45 expected by analysts, while the revenue outlook was slightly ahead at the midpoint of an expected $1.221 billion.

For its full fiscal year, the company expects adjusted earnings of $5.77 to $5.81 and revenue of $5.065 billion to $5.075 billion; analysts had been expecting $5.97 per share and revenue of $4.838 billion.

Image: Zoom