Zoom Technologies Inc (NASDAQ:ZOOM) reported first quarter results that topped Wall Street expectations, driven by stronger enterprise demand and rapid adoption of its AI features, sending shares up roughly 12% in Friday morning trading.
The company posted adjusted earnings per share of $1.55, ahead of analyst estimates of about $1.41, while revenue rose to $1.24 billion versus consensus expectations of $1.22 billion
Total revenue increased 5.5% year over year, or 4.6% in constant currency, according to the company. Zoom said growth was supported by continued expansion in its enterprise segment and accelerating engagement with AI-driven tools. Paid usage of its AI Companion product increased 184% year over year during the quarter, a trend the company pointed to as a meaningful contributor to customer expansion and retention.
Enterprise revenue rose 7.2% to $755.7 million, beating expectations of about $738.8 million. Online revenue increased to $483.3 million, slightly ahead of estimates. The company also reported 4,534 customers generating more than $100,000 in trailing 12-month revenue, an 8.2% increase from a year earlier. “Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch,” Zoom CEO Eric Yuan said. “With strong profitability, cash flow, and an increased share repurchase authorization, we remain focused on turning AI innovation into durable growth, measurable customer value, and long-term shareholder returns.” Looking ahead, Zoom issued guidance for the second quarter of fiscal 2027 calling for revenue between $1.265 billion and $1.27 billion, with non-GAAP earnings per share expected between $1.45 and $1.47.