Zoom Video Communications reported first-quarter earnings that surpassed analyst expectations across the board and issued stronger-than-expected forward guidance, driving the company’s shares higher in Thursday’s after-hours trading session.

The company reported adjusted earnings per share of US$1.55, beating analyst consensus expectations of US$1.42 by US$0.13.

Revenue reached US$1.24 billion, exceeding market expectations of US$1.22 billion and representing year-on-year growth of 5.5%.

CEO Eric Yuan attributed the strong performance to the continued adoption of Zoom as an AI-first platform, noting that paid users of AI Companion increased 184% year-on-year.

Enterprise customer revenue rose 7.2% year-on-year to US$755.7 million.

The company’s trailing 12-month net dollar expansion rate for enterprise customers improved to 99%, up from 98% during the same period last year.

In addition, Zoom now has 4,534 customers contributing more than US$100,000 in revenue over the past 12 months, representing year-on-year growth of 8.2%.

For the second quarter, Zoom expects adjusted earnings per share between US$1.45 and US$1.47, with projected revenue ranging from US$1.265 billion to US$1.27 billion.

The company also raised its full-year fiscal 2027 guidance.

Zoom now expects full-year adjusted EPS between US$5.96 and US$6.00, with a midpoint of US$5.98, above analyst consensus expectations of US$5.87.

Full-year revenue is expected to range between US$5.08 billion and US$5.09 billion, with the midpoint of US$5.085 billion slightly exceeding market expectations of US$5.07 billion.

CEO Eric Yuan stated:

“In the first quarter, we continued our strong momentum, delivering 5.5% year-over-year revenue growth and exceeding the upper end of our guidance range. Supported by strong profitability, solid cash flow, and our newly expanded share repurchase authorization, we remain focused on transforming AI innovation into sustainable growth, measurable customer value, and long-term shareholder returns.”

Market Analysis:

Zoom’s board of directors approved an additional US$1 billion share repurchase program.

Combined with the remaining US$625 million under the previous authorization, the company now has significantly expanded buyback capacity available.

Zoom generated US$500.5 million in free cash flow during the quarter, compared with US$463.4 million in the same period last year.