Zoom falls after weak third-quarter profit forecast

Zoom Communications

26/08/2026 09:23

** Shares of Zoom Communications ZM.O fall 5.43% to $95.44 in premarket trading
** Co forecast Q3 profit below Wall Street expectations on Tuesday, indicating competition remains intense despite its efforts to boost services with AI features
** Co forecast Q3 adjusted profit of $1.46-$1.48/shr, below analyst's avg estimate of $1.50/shr
** The weak outlook overshadows Q2 beat on rev and profit, and comes as ZM faces rivals like Microsoft's MSFT.O Teams and Alphabet's GOOGL.O Google Meet
** Seventeen of 31 brokerages rate the stock "buy" or higher, 13 "hold" and 1 "sell" or lower; their median PT is $120 - LSEG-compiled data
** As of last close, stock up ~17% YTD

 (Reporting by Kanishka Ajmera in Bengaluru)
 ((mail to: Kanishka.Ajmera@thomsonreuters.com))