Zoom Communications, Inc. (ZM Quick QuoteZM - Free Report) used its first-quarter fiscal 2027 earnings call to argue that its next phase is less about video meetings and more about turning conversations into completed work. Management’s central message was that AI is starting to pull through both product adoption and larger multiproduct deals.

That framing mattered because Zoom also paired the strategy update with a revenue beat, higher full-year guidance and a larger buyback authorization, giving investors a clearer view of how management wants AI and customer experience to support durable growth.

ZM Pushes AI Beyond Meeting Summaries

Chief executive officer Eric Yuan spent much of the call recasting Zoom as an AI-first system of action for modern work. His emphasis was on moving from conversation-centric products to tools that automate follow-through, retrieval and workflows after a call ends.

That pitch was backed by rising usage. Management said AI Companion paid monthly active users climbed 184% year over year, while My Notes reached 1.5 million users within four months of launch. The company positioned those products as proof that AI is gaining traction inside the installed base.

Yuan also pointed to custom AI Companion, workflow tools and enterprise retrieval as the features meant to convert that usage into monetization. In Q&A, he said those capabilities are key to shifting Zoom from a platform centered on calls to one centered on task completion.

Zoom Finds Growth in CX and Phone

A second theme was the widening role of customer experience and phone offerings. Yuan said Zoom Customer Experience posted accelerating high double-digit growth, with paid AI included in nine of the top 10 ZCX deals.

Management tied that momentum to competitive displacements and to Zoom’s pitch around unified communications plus contact center. Yuan argued Zoom’s advantage is that it can bridge UC and CX on a native platform, while chief financial officer Michelle Chang said larger deals increasingly reflect that bundled story.

Zoom Phone also remained important. Yuan said phone annual recurring revenues grew in the mid-teens, and several of the customer examples highlighted on the call paired phone with AI and contact center tools rather than selling a single product in isolation.

ZM Raises Full-Year View

The quarter’s financial backdrop was solid but management kept the focus on what it means for the year ahead. Revenues rose 5.5% to $1.24 billion, beating the Zacks Consensus Estimate of $1.22 billion by 1.26%. Adjusted EPS came in at $1.55, topping the consensus mark of $1.41 by 9.59%.

Zoom Communications, Inc. Price, Consensus and EPS Surprise

Zoom Communications, Inc. price-consensus-eps-surprise-chart | Zoom Communications, Inc. Quote

Chang said revenues exceeded the high end of guidance by about $14 million and non-GAAP operating income topped the high end by $17 million. Enterprise revenues grew 7.2%, with enterprise customers now accounting for 61% of total revenues.

For fiscal 2027, Zoom raised guidance to $5.080-$5.090 billion in revenues and $5.96 to $6.00 in non-GAAP EPS. It also raised its repurchase authorization by $1 billion, adding to the $625 million remaining as of April 30.

Zoom Faces Questions on Online Trends

Analysts pressed management on whether the stronger quarter was mostly an enterprise story and whether online trends remain a constraint. Chang acknowledged that online average monthly churn rose to 3.0% from 2.8% a year earlier, though she described the increase as nominal.

She drew a sharper contrast between the segments by calling enterprise growth durable and saying online will still grow slightly for the full year, even as quarterly growth rates slow from easier comparisons and foreign exchange effects.

That exchange mattered because it showed where management believes the business is gaining quality. The call repeatedly returned to enterprise mix, AI monetization and higher-value bundled deals rather than to volume growth in the legacy online channel.

ZM Leans on Longer-Term Enterprise Deals

Another point of investor focus was deal structure. Chang said deferred revenues grew 5% year over year, above prior expectations, because fewer large contracts required grace periods than management had anticipated.

She also highlighted remaining performance obligations of about $4.3 billion, up 11%, driven by 19% growth in noncurrent RPO. In Q&A, Chang linked that trend to longer-duration multiproduct deals, especially in phone, contact center and AI.

Yuan reinforced that message by saying eight of the top 10 CX deals displaced legacy vendors and all 10 were channel driven. That gave management another way to argue that Zoom’s newer enterprise motions are scaling.

Zoom Keeps Its Message on Execution

By the end of the call, management’s tone was confident and tightly focused. Yuan repeatedly returned to product innovation, AI completion workflows and the need to improve customer awareness of what the platform can now do.

Chang’s role on the call was to show that the strategy is being matched by margin discipline, cash flow and capital returns. Together, the prepared remarks and Q&A left the clearest impression that Zoom wants investors to judge it less by meeting growth and more by how effectively it monetizes AI, CX and enterprise platform breadth.

What Zacks Signals Say

ZM currently carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of C, Momentum Score of B and VGM Score of C. Under the Zacks framework, Rank #1 and #2 stocks paired with A or B Style Scores have the strongest expected near-term performance, while a Rank #3 can still be held, with higher letter grades viewed more favorably than lower ones. You can see the complete list of today’s Zacks #1 Rank stocks here.

For ZM, the B Momentum Score stands out more favorably than its other style grades, while the overall Rank and VGM Score point to a more balanced setup than a high-conviction signal. As always, the Zacks Rank can change as earnings estimate revisions move after the quarter and management’s updated outlook are absorbed.