Zoom Reports 7% Revenue Growth in Enterprise Business, Driven by AI Tools

Zoom Video Communications, a global leader in video communication technology, has reported its strongest revenue growth in 11 quarters, driven by the increasing adoption of its expanded product suite that integrates generative AI tools. The company's latest financial report and business outlook exceeded market expectations, indicating a strong preference among enterprise customers for Zoom's enhanced software offerings. This surge in demand has propelled the company to achieve its most robust revenue growth in over two years.

The company's revenue for the fiscal year ending in January 2024 is projected to be approximately 4.83 billion dollars, with non-GAAP earnings per share expected to range from 5.81 to 5.84 dollars. This outlook surpasses analyst estimates, which had predicted revenue of around 4.8 billion dollars and earnings per share of approximately 5.60 dollars. Zoom's video conferencing and enterprise communication platform gained significant traction during the global COVID-19 pandemic. As restrictions eased, many consumers and small businesses allowed their Zoom licenses to expire. However, a substantial number of enterprise clients continued to retain Zoom's services, despite increased competition from Microsoft's Teams and the return of employees to offices.

In the second quarter of the 2026 fiscal year, Zoom's enterprise business revenue grew by 7% year-over-year to 730.7 million dollars, surpassing analyst expectations of 716.7 million dollars. The company reported that it had 4,274 customers who each contributed over 100,000 dollars in revenue during the past year. Over the past few years, Zoom has been diversifying its enterprise video communication business into a comprehensive software platform that includes various business tools, such as an innovative generative AI assistant. Following the release of its financial report, Zoom announced that its "AI Companion" feature now has millions of monthly active users, marking a fourfold increase from the previous year.

The company's strong performance and outlook have driven its stock price higher in after-hours trading, although the stock has declined by 10% year-to-date, underperforming the S&P 500 and Nasdaq-100 indices. The CEO highlighted the company's strong second-quarter results, noting that it achieved the highest year-over-year revenue growth rate in 11 quarters. For the third quarter ending July 31, Zoom's total revenue grew by 4.7% to 1.22 billion dollars. On a non-GAAP basis, adjusted quarterly earnings were 1.53 dollars per share, significantly exceeding analyst expectations.

Zoom has integrated generative and proxy AI functionalities deeply into its communication and collaboration product lines, including Meetings, Team Chat, Mail, Phone, and Contact Center. The Zoom AI Companion, a platform-level AI tool, supports automated meeting summaries, task delegation, in-meeting queries, chat communication, email drafting, intelligent recording, and scheduling coordination. The company positions the AI Companion as a proxy AI capable of coordinating and executing multi-step operations, such as information organization, communication drafting and sending, task triggering, and AI-native document capabilities. These features allow users to convert meeting content into project briefs or minutes with a single click, generating, rewriting, and summarizing documents within the platform.

Zoom is expanding the use and coverage of the AI Companion across meetings, chats, documents, contact centers, and phone services. The company is continuously updating and iterating executable proxy workflows and virtual agents, transforming the video conferencing platform into an AI-driven business operations layer. In the Contact Center, Zoom has introduced AI Expert Assist, which provides real-time knowledge and next-step suggestions for agents, summarizes conversations, and identifies intents. The company has also launched a Virtual Agent/Phone digital front desk, featuring natural language processing for reception, appointment scheduling, and inventory queries, with support for multiple languages and no-code implementation.