NEW YORK, May 22, 2026, 12:06 (EDT)
Zoom Communications shares surged roughly 12% on Friday morning, with the stock reaching a fresh 52-week high after the company boosted its fiscal 2027 guidance and increased its share buyback plan. Zoom was last trading near $108, up from a $96.75 close on Thursday.
Investors want to see if Zoom can show it has room to grow past video calls. The company is pitching itself as a wider workplace platform focused on artificial intelligence, or AI. Its software can summarize meetings, search through work info, and handle follow-ups automatically.
Stocks climbed Friday. The S&P 500 and Nasdaq each rose about 0.6%. The Dow pushed to an intraday record. Investors watched U.S.-Iran talks and headed into the Memorial Day weekend.
Zoom posted revenue of $1.239 billion for the quarter ended April 30, up 5.5% from the same period last year. Enterprise revenue climbed 7.2% to $755.7 million. Adjusted earnings per share came in at $1.55. CEO Eric Yuan said Zoom had “continued momentum” and is focused on “turning AI innovation into durable growth.” Zoom Communications, Inc.
Zoom’s paid monthly active users for AI Companion jumped 184% from a year ago. My Notes, Zoom’s AI note tool, hit more than 1.5 million monthly active users not counting trial accounts in under four months since launch.
Zoom is pushing to land bigger enterprise contracts as it competes with rivals built into existing systems. In prepared remarks, Zoom pointed to a government contractor that switched back for its Workplace, Phone, Events and Webinars, securing a seven-figure recurring annual deal. The win replaced Microsoft Teams and Cisco Calling.
Zoom Communications, Inc. now sees fiscal 2027 revenue coming in at $5.08 billion to $5.09 billion, with adjusted EPS between $5.96 and $6.00. The company also approved another $1 billion in share buybacks. Buybacks can help EPS by cutting the number of shares, but they don’t increase product demand.
Brokers weren’t all on the same page. Benzinga data pointed to a neutral consensus rating and an average price target of $100.72, which is under where shares traded on Friday. Rosenblatt set the top target at $130. Cantor Fitzgerald stuck with a neutral and a $104 price call.
The rally isn’t solid across the board. Zoom put out Q2 adjusted EPS guidance of $1.45 to $1.47, a little short of the $1.48 average analyst call. The revenue forecast of $1.265 billion to $1.270 billion matched up with expectations, Reuters said, quoting LSEG. Zoom cited risk factors like AI adoption, more competition, changes in the macro environment and longer sales cycles for big clients.
Investors right now want to see proof that Zoom’s AI products are actually in use, not just announced. The bigger question is if that usage will get big customers to increase spending over time—rather than just letting Zoom hold onto them.
