Zoom Communications Inc (NASDAQ:ZM) stock rallies 12.77% (As on November 25, 11:37:37 AM UTC-4, Source: Google Finance) after the company reported earnings and revenue beats in its fiscal 2026 third quarter. Non-GAAP income from operations, was $507.0 million for the third quarter, compared to non-GAAP income from operations of $457.8 million in the third quarter of fiscal year 2025. For the third quarter, the non-GAAP operating margin was 41.2%. Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of October 31, 2025 was $7.9 billion. At the end of the third quarter of fiscal year 2026, Zoom had 4,363 customers contributing more than $100,000 in trailing 12 months revenue, up 9.2% from the same quarter last fiscal year and a trailing 12-month net dollar expansion rate for Enterprise customers of 98%.

Moreover, in the quarter Zoom launched its AI Companion 3.0 in September. The artificial intelligence companion is designed to help users deliver high-quality work by providing insights and intelligent assistance and includes a number of updates that enhance its AI agent capabilities with new custom agents, a new low-code builder platform and lifelike AI avatars. Zoom also held its annual Zoomtopia Conference that saw a major shift in focus toward generative and agentic AI across the company’s platform. Along with the Zoom AI Companion 3.0, Zoom unveiled a new assistant called Zoomie that’s designed for meeting rooms and hybrid-work scenarios, featuring voice controls, photorealistic avatars and proactive suggestions for meeting preparation. The company also revealed new customer service and sales workflows with several updates. Webinars now include an “Ask AI Companion” feature enabling late-arriving or returning attendees to ask for summaries and context. The contact-center suite obtained enhanced analytics across customer experience channels to surface insights and drive staffing or self-service recommendations

ZM in the third quarter of FY26 has reported the adjusted earnings per share of $1.52, beating the analysts’ estimates for the adjusted earnings per share of $1.44. The company had reported the adjusted revenue growth of 4.4 percent to $1.23 billion in the third quarter of FY26, beating the analysts’ estimates for revenue of $1.21 billion.

For its fiscal 2026 fourth quarter, Zoom expects adjusted earnings per share of $1.48 to $1.49 on revenue of $1.23 billion to $1.235 billion. For its full fiscal year, the company expects adjusted earnings of $5.95 to $5.97 per share and revenue of $4.852 billion to $4.857 billion.