Zoom Shares Plunge 11.6% After 88% Profit Surge
Zoom shares tumbled 11.6% to $75.54 after reporting fiscal 2026 net profit climbed 88% to $1.9B on revenue growth of 5.7% to $3.7B. Q4 net income rose 83% to $674M on a 5.2% revenue increase to $1.246B, and management forecast FY27 revenue of $5.065–5.075B.
1. Share Reaction
Zoom shares fell 11.58% to $75.54 as investors took profits following a surge driven by strong fiscal 2026 results. The decline reflects market caution after a prior run-up in the stock despite robust earnings growth.
2. Fiscal 2026 Financial Results
For the full fiscal year 2026, Zoom reported net profit of $1.9 billion, up 88% from $1.01 billion a year earlier. Total revenues rose 5.7% to $3.7 billion, supported by a 6.5% increase in enterprise revenues and a 1.2% uptick in online revenues.
3. Q4 Performance and FY27 Guidance
In the fourth quarter, net income climbed 83% to $674 million on revenues of $1.246 billion, up 5.2% year-over-year, with enterprise revenue up 7.1% and online revenue rising 2.6%. Management projects fiscal 2027 revenue of $5.065–5.075 billion and first-quarter revenue of $1.22–1.225 billion.