Zoom Video stock surged 12.9% in morning trading after the company reported a blowout first quarter for fiscal year 2027. Revenue reached $1.24 billion, up 5.5% year over year. Enterprise revenue rose 7.2% to $755.7 million, while online revenue grew 2.8% to $483.3 million.
Non-GAAP profit of $1.55 per share beat analysts' estimates by 9.5%. CEO Eric Yuan highlighted AI momentum: "Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year."
Zoom guided full-year revenue to $5.08-$5.09 billion and authorized an additional $1.0 billion share repurchase program. Citi analyst raised price target to $122 from $106. KeyCorp upgraded Zoom from "underweight" to "sector weight."
The stock hit a fresh 52-week high of $113.73. Free cash flow was $500.5 million, with total cash and marketable securities reaching $7.7 billion.
