Zoom raises outlook and authorizes another $1B in buybacks after first-quarter beat
Shares in Zoom Communications Inc. jumped more than 7% in late trading today after the video communications company comfortably beat first-quarter earnings and revenue expectations, lifted its full-year outlook and authorized another $1 billion in share buybacks.
For the quarter that ended on April 30, Zoom reported adjusted earnings per share of $1.55, up from $1.43 in the same quarter a year earlier, on revenue of $1.239 billion, up 5.5% year-over-year. Analysts were expecting $1.42 per share on revenue of $1.22 billion.
The result follows a weaker showing in February, when Zoom missed on fourth-quarter earnings and issued a fiscal 2027 outlook that fell short of analyst forecasts, sending shares down in late trading at the time. Today’s revenue figure topped the high end of the company’s own first-quarter guidance.
Zoom saw non-adjusted net income come in at $425.7 million in the quarter, up from $254.6 million in the same quarter of the previous year. Operating margin expanded to 25.1% from 20.6%, while adjusted operating margin rose to 41.1% from 39.8%.
