Zoom shares rise as AI-driven demand prompts higher annual forecast

Shares of Zoom Communications ZM.O up 3.1% at $81.06 premarket

Co raised its annual revenue and profit forecasts, citing continued benefits from hybrid work trends and integration of artificial intelligence in its offerings

Now forecasts FY2026 revenue between $4.85 billion and $4.86 billion from earlier projection of between $4.83 billion and $4.84 billion

"Expanding AI adoption, improving Online retention, and strong FCF conversion keep us optimistic heading into FY27," say analysts at RBC Capital Markets

ZM sees annual adj. EPS between $5.95 and $5.97 vs $5.81 and $5.84 earlier

14 of 31 brokerages rate the stock "buy" or higher, 15 "hold" and 2 "sell"; median PT is $94 -- data compiled by LSEG

As of last close, stock down 3.7% YTD