Zoom Shares Jump 8% After Raising Full-Year Guidance and Authorizing $1B Buyback
Zoom shares surged 8% overnight after first-quarter revenue rose 5.5% to $1.24 billion, beating estimates, and full-year revenue guidance was raised to $5.08–5.09 billion with EPS outlook of $5.96–6.00. The company authorized a $1 billion share buyback and reported AI Companion paid users grew 184%, while My Notes reached 1.5 million licensed users.
1. First-Quarter Results and Guidance
Zoom reported first-quarter revenue of $1.24 billion, up 5.5% year-over-year and above the $1.22 billion consensus. Adjusted earnings rose to $1.55 per share, surpassing the $1.42 estimate, and full-year guidance was raised to $5.08–5.09 billion in revenue and $5.96–6.00 in adjusted EPS.
2. $1B Share Buyback
The board authorized a $1 billion share repurchase program to return capital, signaling confidence in cash flow generation and bolstering shareholder value following the earnings beat.
3. AI Feature Monetization and Adoption
Paid users of the AI Companion grew 184% year-over-year, while the My Notes AI tool reached 1.5 million licensed users within four months of launch, highlighting strong enterprise uptake of AI-driven meeting solutions.