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| Content | |
| Meta Title | Zoom forecasts quarterly profit below estimates amid tough competition |
| Meta Description | 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. |
| Meta Canonical | null |
| Boilerpipe Text | 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)
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[](http://www.reuters.com/ "Reuters")
# Zoom forecasts quarterly profit below estimates amid tough competition

Illustration shows Zoom logo · Reuters
Reuters
Wed, February 25, 2026 at 11:03 PM GMT+1
1 min read
In this article:
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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| Readable Markdown | 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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| Publish Time | 2026-02-25 22:03:52 (1 month ago) |
| Original Publish Time | 2026-02-25 22:03:52 (1 month ago) |
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