On August 26, Zoom declined 5.07% overnight, trading at $95.8/share, with turnover of $1.0915 million.

The decline was triggered by the company issuing third-quarter profit guidance below Wall Street expectations, despite reporting a solid second-quarter earnings beat. Zoom posted Q2 adjusted EPS of $1.55, surpassing the consensus estimate of $1.48 by 4.73%, while revenue of $1.28 billion also exceeded the $1.27 billion forecast. However, for Q3, the company guided non-GAAP diluted EPS of $1.46 to $1.48, falling short of analyst expectations of $1.50, signaling that intense market competition continues to pressure profitability.

On the positive side, Zoom raised its full-year guidance to adjusted EPS of $6.08-$6.12 on revenue of $5.085-$5.095 billion, above the prior outlook and consensus estimates. The company also reported 4,625 customers contributing more than $100,000 in revenue, exceeding estimates. Nevertheless, the market chose to price in the near-term Q3 weakness, reflecting concerns that AI product expansion has yet to fully offset competitive headwinds.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)