Zoom Raises FY27 EPS Guidance to $5.98 and Authorizes $1B Buyback
Zoom posted Q1 adjusted EPS of $1.55, beating estimates by $0.13, and revenue of $1.24B, up 5.5% YoY. The company raised FY27 EPS guidance midpoint to $5.98 vs. $5.87 consensus and authorized an additional $1.0B share repurchase.
1. Q1 Financial Outperformance
Zoom reported adjusted EPS of $1.55 in its fiscal first quarter, exceeding the $1.42 estimate by $0.13, and generated revenue of $1.24 billion, up 5.5% year-over-year. Enterprise revenue rose 7.2% to $755.7 million and the net dollar expansion rate improved to 99%.
2. Raised Q2 and Full-Year Guidance
For the second quarter, the company forecasts adjusted EPS between $1.45 and $1.47 and revenue of $1.265–$1.270 billion. It also raised full-year fiscal 2027 guidance to adjusted EPS of $5.96–$6.00, with a midpoint of $5.98 surpassing the $5.87 consensus, and revenue of $5.08–$5.09 billion.
3. AI Adoption and Customer Metrics
AI Companion paid users grew 184% year-over-year, reflecting accelerated adoption of Zoom's AI-first platform and contributing to higher profitability and free cash flow of $500.5 million. The company now serves 4,534 customers with more than $100,000 in trailing 12-month revenue, up 8.2%.
4. Enhanced Share Repurchase and Cash Position
Zoom’s board authorized an additional $1.0 billion stock repurchase, supplementing $625 million of existing authorization. Cash, cash equivalents and marketable securities totaled $7.7 billion at quarter-end, supporting the new buyback program and long-term shareholder returns.