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URLhttps://finance.yahoo.com/news/zoom-forecasts-quarterly-profit-below-220352048.html
Last Crawled2026-02-28 11:33:24 (1 month ago)
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HTTP Status Code200
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Meta TitleZoom forecasts quarterly profit below estimates amid tough competition
Meta DescriptionZoom is ​increasingly squeezed by rivals such as Microsoft's Teams and Alphabet's Google Meet, which come bundled with broader workplace suites that often make them cheaper for enterprise customers. Despite a push to diversify ‌its offerings, Zoom ⁠has been grappling with slowing growth as pandemic-era work-from-home arrangements decline and employees return to offices. While ⁠its enterprise business has shown resilience, the online segment, which serves individual consumers and small businesses, has remained a weak spot.
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Feb 25 (Reuters) - Zoom Communications forecast quarterly profit below Wall Street estimates on Wednesday, signaling intense competition ‌and a cautious spending environment could weigh on its ‌earnings. Shares of the company were down nearly 3% in extended trading. Zoom is ​increasingly squeezed by rivals such as Microsoft 's Teams and Alphabet's Google Meet, which come bundled with broader workplace suites that often make them cheaper for enterprise customers. Despite a push to diversify ‌its offerings, Zoom ⁠has been grappling with slowing growth as pandemic-era work-from-home arrangements decline and employees return to offices. While ⁠its enterprise business 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 stood at $489.7 million, with ‌churn increasing marginally from a year earlier. The broader software sector has also been hammered 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, its investments in ​the technology could pressure operating margins. The ​company expects first-quarter revenue ​between $1.22 billion and $1.23 billion, compared with analysts' ‌average estimate of $1.22 billion, according to ​data compiled ​by LSEG. Adjusted profit per share is forecast between $1.40 and $1.42, below estimates of $1.45. For the fourth quarter, Zoom reported a revenue ​of $1.25 billion, beating ‌estimates of $1.23 billion. Adjusted profit per share came in ​at $1.44, compared with estimates of $1.49. (Reporting by Anhata Rooprai in ​Bengaluru; Editing by Jonathan Ananda) Weʼre unable to load stories right now.
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Zoom is ​increasingly squeezed by rivals such as [Microsoft](https://www.yahoo.com/organizations/microsoft/)'s Teams and Alphabet's Google Meet, which come bundled with broader workplace suites that often make them cheaper for enterprise customers. Despite a push to diversify ‌its offerings, Zoom ⁠has been grappling with slowing growth as pandemic-era work-from-home arrangements decline and employees return to offices. While ⁠its enterprise business 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 stood at \$489.7 million, with ‌churn increasing marginally from a year earlier. The broader software sector has also been hammered in recent months as investors await clarity on the impact of AI and potential business model disruptions. 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Feb 25 (Reuters) - Zoom Communications forecast quarterly profit below Wall Street estimates on Wednesday, signaling intense competition ‌and a cautious spending environment could weigh on its ‌earnings. Shares of the company were down nearly 3% in extended trading. Zoom is ​increasingly squeezed by rivals such as [Microsoft](https://www.yahoo.com/organizations/microsoft/)'s Teams and Alphabet's Google Meet, which come bundled with broader workplace suites that often make them cheaper for enterprise customers. Despite a push to diversify ‌its offerings, Zoom ⁠has been grappling with slowing growth as pandemic-era work-from-home arrangements decline and employees return to offices. While ⁠its enterprise business 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 stood at \$489.7 million, with ‌churn increasing marginally from a year earlier. The broader software sector has also been hammered 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, its investments in ​the technology could pressure operating margins. The ​company expects first-quarter revenue ​between \$1.22 billion and \$1.23 billion, compared with analysts' ‌average estimate of \$1.22 billion, according to ​data compiled ​by LSEG. Adjusted profit per share is forecast between \$1.40 and \$1.42, below estimates of \$1.45. For the fourth quarter, Zoom reported a revenue ​of \$1.25 billion, beating ‌estimates of \$1.23 billion. Adjusted profit per share came in ​at \$1.44, compared with estimates of \$1.49. (Reporting by Anhata Rooprai in ​Bengaluru; Editing by Jonathan Ananda)
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