Zoom Communications reported stronger-than-expected Q4 fiscal 2025 results, with earnings of $1.41 per share and revenue of $1.18 billion. Despite a year-over-year revenue growth of 3.3%, the company faced a 13% reduction in enterprise customers, raising concerns about the sustainability of demand as hybrid work strategies evolve. Additionally, the stock saw an 8% decline after earnings release, reflecting investor anxiety over future performance amidst a backdrop of significant underperformance in recent years compared to the market. For Q1 2026, they project slightly lower sales and earnings than analysts forecasted.
Zoom's fiscal Q4 2025 results surpassed expectations with $1.41 per share earnings and $1.18 billion revenue, but enterprise customer base shrank by 13%.
Despite increased enterprise revenue, Zoom faced a 0.4% decline in online sales and a drop in total enterprise customers, raising long-term demand concerns.
The company projects next quarter's sales at $1.16 billion and earnings of $1.30 per share, which are slightly below market expectations, reflecting cautious growth forecasts.
Zoom stock plummeted 8% post-earnings due to underperformance against the broader market, with significant declines noted over the last four years in terms of returns.
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