(Reuters) -Zoom Communications raised its annual revenue and profit forecast on Monday, benefiting from hybrid work trends and the integration of artificial intelligence into its products.
Shares of the
company were up 3.7% in extended trading.
Zoom has intensified its push to embed AI functionalities across its products and broaden its service offerings to capitalize on the demand for hybrid work solutions.
New products, such as Phone, Contact Center and Virtual Agent, are driving the majority of Zoom's growth.
"We're also seeing strong momentum with Custom AI Companion and our AI-first Customer Experience suite, which helped make this one of our best CX quarters, with broad AI adoption across major deals," CEO Eric Yuan said in a statement.
Demand for AI agents, which are programs that can act autonomously to perform specific tasks, has been growing as companies embrace the new technology to automate workflows and improve efficiency.
Zoom had witnessed rapid growth in users and subscribers as organizations turned to online video-conferencing platforms during the pandemic-led lockdowns.
It has also partnered with Nvidia to include the chipmaker's Nemotron open technologies to support AI Companion 3.0 across industries such as finance, healthcare and government.
The company now expects fiscal 2026 revenue between $4.85 billion and $4.86 billion, compared with its earlier projection of $4.83 billion and $4.84 billion.
It forecast annual adjusted profit per share between $5.95 and $5.97, compared to a prior view of $5.81 and $5.84.
Revenue for the third quarter, ended October 31, was $1.23 billion, ahead of estimates of $1.21 billion, according to data compiled by LSEG.
Zoom earned $1.52 per share on an adjusted basis during the quarter, compared with estimates of $1.44 apiece.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
