Why Is Zoom Stock Jumping Nearly 8% Overnight?

• ZM shares rose 8% in overnight trading.
• Zoom said its new AI features helped drive enterprise demand, while the company continues to explore additional avenues to monetize its AI offerings.
• Stocktwits sentiment for ZM shifted to ‘extremely bullish’ from ‘neutral.’

Zoom Communications shares jumped 8% in overnight trading ahead of Friday after the video conferencing platform reported first-quarter results that topped analyst estimates and raised its full-year forecasts, boosting bullish sentiment among retail traders.

The company’s second-quarter guidance, however, came in below expectations. Zoom additionally authorized a $1 billion share buyback.

Zoom has been aggressively embedding AI features, including agents and digital companions, across its video meeting and communication platforms to strengthen its appeal among enterprise customers – a strategy that now appears to be paying dividends.

Zoom Results, Forecasts, AI Push

First quarter revenue rose 5.5% to $1.24 billion, surpassing estimates of $1.22 billion. Adjusted earnings increased from $1.55 a share, up from $1.43 a year earlier, and came in higher than expectations of $1.42. During the quarter, the number of customers contributing more than $100,000 annually rose 8.2% to 4,534.

Looking ahead, Zoom now expects full-year adjusted earnings of $5.96 to $6 per share on revenue of $5.08 billion to $5.09 billion, up from the prior outlook of EPS of $5.77 to $5.81 on revenue of $5.065 billion to $5.075 billion.
 

“Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch,” CEO Eric S. Yuan said in a statement. 

The AI Companion, launched in September 2023, is Zoom’s generative AI assistant for meeting summaries and task and workflow automation, while My Notes, launched in February 2026, is its AI-powered meeting note-taking tool.

“We also saw strong progress across new AI monetization streams and Zoom Customer Experience, which continued to see accelerating high double-digit growth,” Yuan added.

Retail, Analyst View On Zoom

On Stocktwits, the retail sentiment for ZM shifted to ‘extremely bullish’ late Thursday, up from ‘neutral’ the previous day. “$ZM im as shocked as the next guy. will look great if the move sticks,” a trader said. A bearish user wrote, “$ZM missed guidance, this should be negative.”

Zoom ⁠forecasts second-quarter revenue between $1.26 billion and $1.27 billion, EPS between $1.45 and $1.4. Analysts were expecting revenue of $1.27 billion and EPS of $1.48.

Notably, ZM stock fell sharply in the run-up to the earnings report. As of the last close, shares had declined 12% from their all-time high level achieved on March 8.

“The AI transformation showed strong traction, with AI Companion paid users growing 184% Y/Y and continued high double-digit Contact Center growth,” CFRA analysts said in an investor note. “We expect AI monetization products to drive continued growth momentum.”

Zoom shares are up 12% year-to-date. Zoom competes with Microsoft Teams, Google Meet, Salesforce Slack, and Cisco Webex.

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