Zoom Video Communications (NASDAQ:ZM) shares fell 1.7% in after-hours trading Wednesday after the video conferencing company reported fourth-quarter results that missed earnings expectations. The company posted adjusted EPS of $1.44, falling short of the analyst consensus of $1.49 by $0.05. Revenue reached $1.25 billion, beating estimates of $1.23 billion and marking a 5.3% year-over-year increase.

Enterprise revenue climbed 7.1% year-over-year to $757.3 million, while Zoom added 4,468 customers contributing more than $100,000 in trailing 12-month revenue, up 9.3% from the prior year. For the first quarter of fiscal 2027, Zoom projected adjusted EPS of $1.40 to $1.42, with a midpoint of $1.41 falling below the analyst consensus of $1.45. The company expects first-quarter revenue of $1.220 billion to $1.225 billion, slightly above the consensus of $1.221 billion.

For the full fiscal year 2027, Zoom guided adjusted EPS to $5.77 to $5.81, with a midpoint of $5.79 significantly below the consensus of $5.97. However, revenue guidance of $5.065 billion to $5.075 billion exceeded the analyst consensus of $4.838 billion. The company reported a 39.3% adjusted operating margin for the fourth quarter and generated $338.4 million in free cash flow.