Zoom Communications Retail Investors Dial In Despite Muted Stock Reaction To Q1 Print

Zoom Communications, Inc. (ZM) announced Wednesday after the market closed better-than-expected quarterly earnings while revenue was in line. The company lifted its full-year expectations, but the second-quarter guidance was lackluster.

The video-conferencing app provider reported adjusted earnings per share (EPS) of $1.43 and revenue of $1.18 billion for the first quarter of the fiscal year 2026. The year-over-year (YoY) growth of 2.9% decelerated from the 3.3% growth in the preceding quarter.

The bottom line exceeded the Fnchat-compiled consensus estimates of $1.34, while the revenue was in line. Both metrics, however, exceeded the guidance issued in mid-February.

Zoom Communications noted that enterprise revenue climbed 5.9% to $704.7 million, while online revenue slipped 1.2% to $470 million.

CEO Eric Yuan said, “We delivered another solid quarter, exceeding guidance in both revenue and profitability — a testament to the strength of our platform and AI-first innovation.”

The executive noted continued momentum in Zoom Customer Experience, Zoom Revenue Accelerator, and Workvivo.

Among customer metrics, the number of customers contributing over $100,000 on a trailing 12-month basis rose 8% to 4,192, the trailing 12-month net dollar expansion rate was 98%, and the online average monthly churn fell 40 basis points YoY to 2.8% in the first quarter.

For the second quarter, Zoom Communications expects adjusted EPS of $1.36-$1.37 and revenue of $1.195 billion-$1.20 billion. Analysts, on average, estimate $1.37 and $1.20 billion, respectively.

Zoom's fiscal year 2026 guidance anticipates adjusted EPS of $5.56-$5.59 and revenue of $5.56 billion-$5.59 billion, up from the previous outlook of $5.34-$5.37 and $4.785 billion-$4.795 billion, respectively.

On Stocktwits, retail sentiment toward Zoom Communications stock was ‘extremely bullish’ (91/100) by late Wednesday, and the message volume was ‘extremely high.’

A bullish watcher fervently hoped the stock opens higher on Thursday, adding that they don’t trust the low volume during the after-hours.

Another lauded the company for “solid results yet again” and a “great balance sheet.”

Zoom Communications stock retreated 0.16% in Wednesday’s after-hours session. For the year, the stock is up 0.8%.

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