Zoom Video Communications (NASDAQ:ZM) delivered better-than-expected fourth-quarter earnings, but shares dropped more than 8% intra-day today as the company’s forward guidance fell short of analyst expectations.
For the quarter, Zoom reported adjusted earnings per share (EPS) of $1.41, beating the expected $1.30, while revenue climbed 3.3% to $1.18 billion, aligning with consensus forecasts.
However, investor sentiment turned cautious due to the company’s weaker-than-anticipated outlook. For Q1 2026, Zoom projects EPS between $1.29 and $1.31, compared to the $1.31 consensus estimate. Its revenue forecast of $1.162 billion to $1.167 billion also fell below the expected $1.175 billion.
For the full fiscal year 2026, the company anticipates EPS of $5.34 to $5.37, missing the $5.56 analyst estimate. Revenue is projected to range between $4.785 billion and $4.795 billion, coming in below the $4.84 billion consensus forecast.