Zoom Communications (ZM, Financials) reported fourth-quarter revenue of $1.184 billion, a 3% increase year-over-year, exceeding guidance by $4 million.

Emphasizing its move to an AI-first platform, CEO Eric Yuan noted a 68% quarter-over-quarter increase in AI Companion users. Launching Custom AI Companion add-ons in April 2025, Zoom intends to profit from its AI solutions by automating office duties and integrating with other technologies, thereby streamlining processes.

Now making 60% of all sales, enterprise revenue increased 6% year over year. Signing a Fortune 100 firm for 15,000 agents, the company's Contact Center segment closed its biggest annual recurring income transaction. With higher-tier packages driving much of the increase, the number of Contact Center customers producing over $100,000 in annual recurring income quadrupled year-over-year. Thanks to a relationship with Meta Workplace, Zoom's employee engagement tool, Workvivo, saw an 89% year-over-year rise in customers.

At $1.41, non-GAAP profits per share exceeded forecasts by $0.11. Operating margin was 39.5%; non-GAAP operating income came to $468 million. Growing 25% year over year, free cash flow came to $416 million. While performance obligations climbed 6% to $3.8 billion, deferred revenue dropped 7% to $1.35 billion. Improved to 2.8%, a record low for the quarter, the online business turnover rate

Reflecting 2.7% year-over-year growth, Zoom projects revenue for fiscal 2026 between $4.785 billion and $4.795 billion. Projected non-GAAP EPS falls between $5.34 and $5.37. Anticipated first-quarter income ranges from $1.162 billion to $1.167 billion, a 2% rise at the middle. Forecasts for free cash flow range from $1.68 billion to $1.72 billion.

Analysts questioned Zoom's business growth, macroeconomic concerns, and AI monetizing schedule. Yuan confirmed that April will include AI Companion add-ons. CFO Michelle Chang said income linked to artificial intelligence will be more significant in the second half of the year. With six of the top 10 transactions resulting from channel alliances, contact center expansion continues to be a priority.

Though analysts expressed worries regarding AI adoption cycles, macroeconomic instability, and possible margin pressures, there was hope about AI-driven growth. Zoom understood that income connected to artificial intelligence would take time to show up as consumers adopted new products.

Though expansion is still limited, Zoom keeps emphasizing artificial intelligence and corporate development. To propel long-term potential, the corporation anticipates AI investments, enterprise momentum, and careful financial management.