The company’s shares fell nearly 3% in extended trading.
Zoom is coming under increasing pressure from rivals such as Microsoft Teams and Alphabet’s Google Meet, which come with broader workplace suites that often make them cheaper for business customers.
Despite an effort to diversify its offerings, Zoom is facing slowing growth as pandemic-era work-from-home arrangements wane and employees return to the office.
While business activity has shown resilience, the online segment, which serves individual consumers and small businesses, has remained a weak spot.
In the fourth quarter, Zoom’s online segment revenue was $489.7 million, with churn increasing marginally from a year earlier.
The broader software sector has also suffered in recent months as investors await clarity on the impact of AI and potential business model disruptions.
While Zoom has launched a slew of AI features to drive growth, the investments in the technology could put pressure on operating margins.
The company expects first-quarter revenue between $1.22 billion and $1.23 billion, compared with the average analyst estimate of $1.22 billion, according to data compiled by LSEG.
Adjusted earnings per share are expected between $1.40 and $1.42, below the estimate of $1.45.
For the fourth quarter, Zoom reported revenue of $1.25 billion, beating expectations of $1.23 billion.
Adjusted earnings per share came in at $1.44, compared to an estimate of $1.49.
Published on February 26, 2026
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