Zoom (ZM) Nosedives 11.6% After Earnings

We recently published 10 Stocks Investors Have Ditched. Zoom Communications Inc. (NASDAQ:ZM) was one of the worst performers on Thursday.

Zoom Communications fell by 11.58 percent on Thursday to finish at $75.54 apiece, as investors appeared to have taken profits following the previous days’ surge—thanks to its strong earnings performance in the fiscal year 2026.

During the period, Zoom Communications Inc. (NASDAQ:ZM) said that net profit surged by 88 percent to $1.9 billion from $1.01 billion in fiscal year 2025, while total revenues grew by 5.7 percent to $3.7 billion from $3.5 billion, on the back of a 6.5 percent growth in enterprise revenues, and a 1.2 percent uptick in online revenues.

In the fourth quarter alone, net income increased by 83 percent to $674 million from $367.86 million, while total revenues grew by 5.2 percent to $1.246 billion from $1.184 billion, thanks to a 7.1 percent growth in enterprise revenues and a 2.6 percent increase in online revenues.

“In Q4, we saw accelerating, high-double-digit growth in Zoom Customer Experience, with paid AI included in each of our top 10 CX deals, underscoring the value of live context and automated follow-through. As we enter FY27, we expect to surpass the $5 billion revenue milestone and remain focused on delivering durable, profitable growth and long-term shareholder returns,” said Zoom Communications Inc. (NASDAQ:ZM) CEO Eric Yuan.

Encouraged by the results, Zoom Communications Inc. (NASDAQ:ZM) is targeting full-year 2027 revenues between $5.065 billion and $5.075 billion, while revenues in the first quarter are projected at $1.22 billion to $1.225 billion.

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