Zoom Video Communications, now officially known as Zoom Communications, delivered better-than-expected third-quarter earnings and revenue, signaling its resilience in a competitive market. The company, famous for its video conferencing software, has shown promising growth in enterprise sales, even as it navigates the post-Covid era.
Q3 Highlights: Earnings and Revenue
For the quarter ending in October, Zoom reported adjusted earnings of $1.38 per share, a 7% increase compared to the same period last year. The company’s revenue rose by 3.6% year-over-year to reach $1.178 billion, exceeding Wall Street expectations.
Guidance for Fiscal 2026
Looking ahead, Zoom provided preliminary revenue guidance for fiscal 2026, aligning with analysts’ expectations. The company forecasts revenue of around $4.783 billion, which represents a 2.7% year-over-year growth starting in Q4 fiscal 2025. While the guidance reflects a slower growth rate, analysts believe it’s a cautious approach with a new CFO now leading the financial strategy.
Jefferies analyst Samad Samana commented, “The guidance makes sense, as it allows Zoom to keep expectations manageable while the new CFO gets acquainted with the role.”
Zoom’s Post-Covid Challenges
Zoom became a household name during the Covid-19 pandemic, as demand for its videoconferencing software skyrocketed. Businesses shifted to remote work, and families used Zoom to stay connected. However, as the world moves beyond the pandemic, Zoom has faced slower growth, a challenge shared by many companies that thrived during the Covid era.
Despite these challenges, Zoom remains a strong performer. Its stock currently holds a Relative Strength Rating of 86 out of 99, according to IBD Stock Checkup, reflecting its solid position in the market.
Enterprise Sales: A Key Driver
Zoom’s enterprise sales have been a significant growth driver. The company is increasingly focusing on business clients to maintain its momentum in a competitive landscape. This shift could position Zoom for steady growth as businesses continue to rely on hybrid work models.
Looking Ahead
With strong Q3 results and a clear fiscal 2026 outlook, Zoom Communications is adapting to its post-pandemic reality. While growth rates have normalized, the company’s focus on enterprise solutions and cautious financial strategy point to a steady future.
Zoom remains a key player in the tech space, proving that it’s more than just a pandemic-era success story.
