Zoom raises annual outlook for growing demand for AI tools in hybrid work

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Nov. 24 (Reuters) – Zoom Communications (ZM.O)opens a new tab boosted its full-year sales and profit forecasts on Monday, benefiting from hybrid work trends and the integration of artificial intelligence into its products.

The company’s shares rose 3.5% in extended trading.

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Zoom is ramping up its efforts to embed AI capabilities across its products and expand its service offerings to capitalize on demand for hybrid work solutions.

New products like phones, contact centers, and virtual agents are driving much of Zoom’s growth.

CEO Eric Yuan said, “We also saw strong momentum in our custom AI companion and AI-first customer experience suite, with widespread AI adoption across key deals that helped make this quarter one of our best CX quarters.”

As companies adopt new technologies to automate workflows and improve efficiency, the demand for AI agents, which are programs that can operate autonomously and perform specific tasks, is increasing.

“As companies move beyond AI science projects to initiatives that seek clear business outcomes, Zoom’s AI Companion, included in eligible paid plans, provides an attractive foundation for future AI monetization efforts while accelerating adoption,” said Rebecca Wetteman, CEO of industry analyst firm Valoir.

Zoom expects fiscal 2026 revenue to be between $4.85 billion and $4.86 billion, compared with previous expectations of $4.83 billion to $4.84 billion.

The company now expects full-year adjusted earnings per share to be in the range of $5.95 to $5.97, compared with previous expectations of $5.81 to $5.84. The company increased its share buyback authorization by $1 billion.

It also has a partnership with NVIDIA (NVDA.O).opens a new tab It will incorporate the chipmaker’s Nemotron open technology, which supports AI Companion 3.0 across industries including finance, healthcare and government.

Third-quarter sales were $1.23 billion, beating expectations of $1.21 billion, according to data compiled by LSEG.

Zoom’s adjusted earnings were $1.52 per share, compared to expectations of $1.44.

Reporting by Juvie Babu in Mexico City. Editing: Alan Barona

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