Zoom Faces Lower Profit Forecast as Competition Tightens

Zoom’s latest earnings hint that the company may not meet analyst expectations for this quarter. The firm’s stock slipped almost 3 % after hours, reflecting investor concern about its future growth. The platform’s big‑business side remains solid, but its consumer and small‑biz segment is still under pressure. In the last quarter, revenue from this online division hit $489. 7 million and customer churn edged up slightly compared with the same period a year ago. Zoom is also feeling the squeeze from the wider software market. Many investors are waiting to see how artificial‑intelligence developments will reshape business models, and the company’s heavy investment in AI tools could trim operating margins.Looking ahead, Zoom projects first‑quarter revenue between $1. 22 billion and $1. 23 billion, which sits just below the average analyst forecast of $1. 22 billion. Its adjusted earnings per share are expected to fall between $1. 40 and $1. 42, missing the consensus estimate of $1. 45. For the fourth quarter, Zoom beat revenue expectations by reporting $1. 25 billion against a consensus of $1. 23 billion, but adjusted earnings per share came in at $1. 44 versus an estimate of $1. 49.