A Zoom logo appears in this illustration taken August 18, 2025. REUTERS/Dado Ruvic/Illustration

Zoom forecasts quarterly profit below estimates

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Aug 25 : Zoom Communications forecast third-quarter profit below Wall Street expectations on Tuesday, signaling stiff competition was squeezing the video-conferencing company even as it ramps up AI features on its services.

Shares of the San Jose, California-based company fell 3.8 per cent in extended trading.

Here are more details:

• Zoom has been rolling out AI tools, including an AI Companion assistant, a meeting receptionist assistant and its suite of enterprise-focused AI features under "Zoom AI Services" to attract more customers.

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• But the company has been facing stiff competition from rivals such as Microsoft's Teams and Alphabet's Google Meet.

• Zoom forecast third-quarter revenue in the range of $1.275 billion to $1.28 billion, compared with analysts' average estimate of $1.28 billion, according to data compiled by LSEG.

• The company forecast third-quarter adjusted profit between $1.46 and $1.48 per share, below analysts' average estimate of $1.50 per share.

• The company posted second-quarter revenue of $1.28 billion, above analysts' average estimate of $1.27 billion, according to LSEG.

• Second-quarter adjusted profit per share came in at $1.55, above analysts' average estimate of $1.48.

Source: Reuters

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