US Stock Market Move | Profit guidance for the fiscal year 2027 is lower than expected, causing Zoom Communications (ZM.US) to plummet over 14%.

On Thursday, Zoom Communications (ZM.US) opened trading with a significant drop of over 14%, at $73.11 per share. On the news front, Zoom Communications' fourth-quarter performance fell short of profit expectations, and the company issued lower-than-expected profit guidance. The video communication company reported an adjusted earnings per share of $1.44 for the fourth quarter, which was lower than the analysts' consensus of $1.49 by 0.05. Revenue reached $1.25 billion, exceeding the expected $1.23 billion, with a year-on-year increase of 5.3%. Enterprise revenue saw a 7.1% year-on-year increase to $757.3 million, and the company added 9.3% more customers who contributed over $100,000 in revenue over the past 12 months, totaling 4,468 customers. For the first quarter of fiscal year 2027, Zoom expects an adjusted earnings per share of $1.40 to $1.42, with a midpoint of $1.41, below the analysts' consensus of $1.45. The company anticipates first quarter revenue to be between $12.20 billion and $12.25 billion, with a midpoint of $12.23 billion slightly higher than the consensus of $12.21 billion. For the entire fiscal year 2027, Zoom's guidance indicates an adjusted earnings per share of $5.77 to $5.81, with a midpoint of $5.79 significantly lower than the consensus of $5.97. However, the company's revenue guidance is between $50.65 billion and $50.75 billion, with a midpoint of $50.70 billion, surpassing the analysts' consensus of $48.38 billion.