Track market-moving stories before they get noisy

Investors with an interest in Internet - Software stocks have likely encountered both KANZHUN LIMITED Sponsored ADR (BZ) and Zoom Communications (ZM). But which of these two stocks offers value investors a better bang for their buck right now?

Zoom Communications Inc. (NASDAQ:ZM) stock traded higher Wednesday after the company unveiled long-term financial targets and new artificial intelligence-powered products at its Zoomtopia event.

Zoom Communications, Inc. (ZM) Discusses Strategy, Vision, AI Initiatives and New Revenue Streams at Investor Session October 20, 2026 4:00 PM EDT

Company Participants

Charles Eveslage - Head of Investor Relations
Michelle Chang - Chief Financial Officer
Graeme Geddes - Chief Sales & Growth Officer
Russell Dicker - Chief Product Officer
Chris Morrissey
Eric Yuan - Founder, President, CEO & Chairman

Conference Call Participants

Aleksandr Zukin - Wolfe Research, LLC
Ioannis Samoilis - Robert W. Baird & Co. Incorporated, Research Division
Arjun Bhatia - William Blair & Company L.L.C., Research Division
Sitikantha Panigrahi - Mizuho Securities USA LLC, Research Division
Jackson Ader - KeyBanc Capital Markets Inc., Research Division
Catharine Trebnick - Rosenblatt Securities Inc., Research Division
Samik Chatterjee - JPMorgan Chase & Co, Research Division
Elizabeth Elliott - Morgan Stanley, Research Division
Allan M. Verkhovski - BTIG, LLC, Research Division
Taylor McGinnis - UBS Investment Bank, Research Division
Joshua Reilly - Needham & Company, LLC, Research Division

Conversation

Charles Eveslage
Head of Investor Relations

Okay, all right. Hello, everyone, and welcome to our investor session at Zoomtopia 2026. We're so happy to have everyone here in the room and also on the virtual audience. I hope you guys got to experience the keynote and all the exciting things happening there. And for those of you here today, I hope you enjoyed the nice lunch with a view.

We have a packed agenda for you all today. First, Michelle, our CFO, will touch on Zoom's strategy, vision, priorities, and progress and connect that to what you all care about, our growth, our ability to generate cash, and return capital for shareholders; then Graeme, our Chief Sales Officer, will take us through the first priority of elevating our core business with AI; Chris Morrissey, our GM of Customer Experience, will take us through all the exciting things in his world; and then Russell Dicker, our Chief Product Officer, will come on to take us through the new AI revenue streams.

SAN JOSE, Calif., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Today at its annual Zoomtopia customer conference, Zoom Communications, Inc. (NASDAQ: ZM), a leading AI-first platform for human connection, introduced a new Unified Context Layer and several new products with AI-powered capabilities. The new offerings are designed to help businesses transform rich meeting context into meaningful deliverables that help accelerate work outcomes.

Business conversations drive critical decisions and build customer history every day. A customer interaction might start in a meeting, continue by phone, and carry on in chat threads. But when that context is scattered across applications, people and AI agents lose the thread and teams spend significant time piecing together what happened, when it happened, and what they should do about it.

Zoom’s new Unified Context Layer helps close that gap by linking conversation history with relevant documents and data. Together, these sources give people and AI agents a fuller picture of the work and what needs to happen next.

This new layer brings together conversations with near real-time activity across Zoom and connected third-party applications, giving people and AI agents access to business context that might otherwise be lost or siloed. Configurable settings and controls help manage access, while coordination among AI agents turns business context into actionable insights.

Zoom is increasingly becoming a system of action as organizations, large and small, put the company's AI tools to work at scale.

Zoom Virtual Agent customer count has surged by 256%1, and users who leverage Zoom's various AI tools report completing tasks twice as fast, with 72% citing high or extremely high business impact, compared with a market average of 63%2. Zoom is expecting to surpass $5 billion in annual revenue this year.

With a growing enterprise footprint across industries from healthcare to financial services, retail, and education, the company is advancing its vision for workplace productivity, one where the line between conversation and execution shrinks.

“AI models are only as powerful as their understanding of your business, and that context makes all the difference,” said Eric Yuan, founder and CEO of Zoom. “Fragmented product experiences isolate conversations, stall decisions, and drag businesses down. Today, with the Unified Context Layer, we’re laying the groundwork for a system of action designed to turn conversations into completed work.”

“Our teams have the information they need, but it’s often dispersed across meetings, notes, and different systems,” said Christine Sarros, senior vice president of Enterprise Engineering, Oracle Cloud Infrastructure. “Zoom’s new solutions could help bring that context together, so teams can enter customer conversations with a clearer understanding of what’s been discussed, what’s been decided, and what needs to happen next. We see an opportunity to spend less time reconstructing history and more time helping our customers move forward.”

At Zoomtopia, Zoom is bringing this vision to life with innovations across collaboration, AI, customer experience, and events. The announcements below show how it all connects business context to the tools and workflows people actually use to get work done.

Give people and AI agents context to turn conversations into action

Every meeting, chat, and document leaves a trail of discussion, decisions, and action items. Zoom's Unified Context Layer accesses this information to help people and AI agents quickly move from context to clarity to action.

The Unified Context Layer makes work even more efficient when used with the newly introduced capabilities that include:

Follow the meeting: Delivers personalized transcripts and summaries for users who miss all or parts of a meeting. (Expected December 2026.)Enriched notes: Links shared screens, slides, charts, and in-meeting chat to relevant moments in a searchable transcript. (Expected November 2026.)My Notes hardware integrations: Extends My Notes to in-person conversations through new devices from DTEN and Bota. (Expected November 2026 and Q1 2027, respectively.)My Notes Workflows: Turn meeting summaries into follow-up work in everyday tools like Zoom Chat and Salesforce, with ready-made workflows for sales, marketing, and IT, or custom ones created by describing what to automate in natural language, no separate workflow builder needed to get started. (Expected October 2026.)New Zoom Chat experience: A refreshed chat experience designed to help surface relevant conversations and bring AI agents directly into discussions to take actions based on administrator-defined controls. (Expected December 2026.)ZoomMate Agent Teams: Specialized AI agents that work together in an AI team to support faster execution of work. (Available now.) Bring Zoom capabilities into the AI tools businesses already use

Developers and AI agents can now access Zoom capabilities outside the Zoom app. Through APIs and Model Context Protocol (MCP) servers, teams can connect scheduling, transcription, search, administration, and contact center actions to other AI environments and workflows. Highlights include:

MCP Servers: With new MCP servers across the portfolio, developers and AI agents can coordinate actions outside the Zoom UI. (Available now.)Connections to AI Assistants: Use supported Zoom capabilities within AI environments, including Claude, Codex, Copilot, and Muse. (Expected October 2026.)Search & Ask APIs: Query Zoom's Unified Context Layer directly from Claude, GPT, Codex, Muse, MS Copilot, Gemini, and Slackbot, as well as MCP-compatible agents. (Available now.)Zoom Admin MCP Server: Perform admin tasks conversationally. (Expected October 2026.)

Reduce barriers to natural, engaging conversation

To help users show up as their best in meetings, Zoom is making conversations clearer, more natural, and more inclusive, with AI driving more meaningful outcomes. These new enhancements strengthen the foundation for the unified context layer with:

Voice Translator: "Translate Me" enables a speaker to translate their audio for all participants using a synthesized version of their own voice, designed to preserve a natural feel. (Expected October 2026.)Pose Correction: Subtly adjusts a user’s video when they glance away from the camera, helping maintain a camera-forward appearance. (Expected December 2026.)Touch up my Voice: Users can use this feature to alter their own voice with real-time accent smoothing so speakers come through more clearly and naturally. (Expected December 2026.)High-quality screen sharing: Enhanced media support for 60 frames per second screen sharing. (Available now.)Live Meeting AI Agent: Proactive meeting assistance that helps find answers, keep meetings on track, and nudge engagement. (Expected Q1 2027.)

Carry customer history from one interaction to the next

Customer service breaks down when customers have to constantly repeat themselves, and agents have to reconstruct past interactions Zoom CX extends shared customer context across a variety of channels, including live and AI agents, providing a broader view of the past and present to help inform future outcomes. Highlights include:

Customer Profiles: Brings dynamic customer profiles into Zoom CX with real-time context across channels and interactions. (Expected November 2026.)CX Insights Transcript Intelligence: Automatically classifies voice, chat, and email transcripts and makes them queryable in natural language, joined with operational data, such as handle time, queue, and outcome. (Expected November 2026.)Zoom Virtual Agent - Kiosk: Brings AI-powered self-service to physical retail locations via branded kiosk agents, resolving customer requests on the spot without relying on
in-store staff. (Expected November 2026.)

Give businesses control as AI takes on more work

Zoom is adding new management controls that enable administrators to manage AI activity across the account while supporting customers' existing guardrails and data-classification policies. Highlights include:

Centralized AI Management: Provides administrators with greater control over how AI features are configured and used across the organization. (Expected December 2026.)Sensitivity Labels: Seamlessly sync with Microsoft Purview sensitivity labels or create native labels in Zoom, then automatically enforce policies based on the sensitivity of meetings and content. (Available now for select Zoom Workplace customers.)AI Guardrails: Set account-level rules governing what AI can generate or use in its responses. (Expected Q1 2027.)Deepfake Risk Detection: Introduce deepfake risk detection tools designed to help flag potential synthetic media across hiring, customer experience, and meeting scenarios. (Expected December 2026.)Zoom Compliance Manager support for My Notes and Zoom Canvas: Archives and monitors AI-generated summaries, notes, and documents to help address organization's own retention and supervision requirements3. (Expected January 2027.) Extend the business value of events beyond the closing session

Most of what happens at a live event disappears the moment it ends. Zoom Events now brings powerful AI functionality to event planning, content creation, and analytics. These capabilities help reduce the amount of heavy setup work involved and extend the value of event content long after sessions end. Highlights include:

Content Studio: Turn one recording into a multi-language, multi-format asset library. (Expected October 2026.)Agentic Event Setup: Use AI to help configure event details, from sessions to registration, before launch. (Expected November 2026.)AI Analytics for Events: Query event data in plain language, score engagement, and generate shareable reports, cutting post-event analysis time significantly. (Available now.) Taken together, today's launches represent a significant step for Zoom toward becoming a system of action for modern work by connecting conversations to the work that follows, across roles and industries. For more information on announcements from Zoomtopia 2026, visit the Zoom newsroom.

About Zoom

Zoom (NASDAQ: ZM) is a system of action for modern work, turning live collaboration into completed results. From entrepreneurs to global enterprises, customers choose Zoom to seamlessly collaborate, communicate, and drive outcomes across meetings, phone, contact center, and more — all with the built-in assistance of Zoom AI. Founded in 2011, Zoom is headquartered in San Jose, CA. For more information, visit zoom.com.

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1 2QFY27 Earnings Report
2 According to Zoom's 2026 GenAI ROI Study (a quantitative survey of 500 U.S.-based knowledge workers).
3 Zoom Compliance Manager is not a substitute for independent legal or compliance review.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/9c70a77f-51bf-4202-b476-aef093fb52e2

https://www.globenewswire.com/NewsRoom/AttachmentNg/49686e54-443a-4304-95ba-e3af90a01719 

https://www.globenewswire.com/NewsRoom/AttachmentNg/9f0dc69f-7946-4359-9f24-f257d1132c1b

https://www.globenewswire.com/NewsRoom/AttachmentNg/8d3df8bf-3fb4-48f3-9ab7-28ad7a19ca8a

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Zoom Communications (ZM - Free Report) .

Zoom currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 2.00 indicates Buy.

Of the 27 recommendations that derive the current ABR, 12 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 44.4% and 11.1% of all recommendations.

Brokerage Recommendation Trends for ZM

Check price target & stock forecast for Zoom here>>>

The ABR suggests buying Zoom, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is ZM Worth Investing In?Looking at the earnings estimate revisions for Zoom, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.24.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zoom. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Zoom.

Zoom Communications (ZM - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this video-conferencing company have returned +6.9%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has gained 5.4%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Zoom is expected to post earnings of $1.50 per share for the current quarter, representing a year-over-year change of -1.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $6.24 for the current fiscal year indicates a year-over-year change of +5.4%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $6.35 indicates a change of +1.9% from what Zoom is expected to report a year ago. Over the past month, the estimate has changed +0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zoom.

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Zoom, the consensus sales estimate for the current quarter of $1.28 billion indicates a year-over-year change of +4%. For the current and next fiscal years, $5.09 billion and $5.29 billion estimates indicate +4.6% and +3.9% changes, respectively.

Last Reported Results and Surprise HistoryZoom reported revenues of $1.28 billion in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $1.55 for the same period compares with $1.53 a year ago.

Compared to the Zacks Consensus Estimate of $1.27 billion, the reported revenues represent a surprise of +0.68%. The EPS surprise was +3.33%.

Over the last four quarters, Zoom surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Zoom is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Zoom. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ZM, GOOG, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Investors interested in stocks from the Internet - Software sector have probably already heard of ZoomInfo (GTM) and Zoom Communications (ZM). But which of these two stocks is more attractive to value investors?

On October 01, 2026, Zoom Communications Inc ZM shares rose 3.3% to $93.80, showing positive movement in a volatile market. Over the past 52 weeks, the stock has fluctuated between a high of $114.74 and a low of $70.70.

GF Value™ verdict: Current price is $93.80, which is 9.5% above the GF Value™ of $85.68, indicating the stock is overvalued.GF Score™: 86/100, which is considered strong, suggesting solid financial health and potential for growth.Most notable signal: Insider activity indicates a sell-off of $97.6 million over the past 12 months, with no buying activity.Is ZM Overvalued or Undervalued?Zoom Communications Inc ZM currently trades at $93.80, which is above its GF Value™ estimate of $85.68. This puts the stock at a 9.5% premium to its intrinsic value, suggesting that the shares are overvalued. The GF Value™ is GuruFocus' proprietary estimate of a stock's intrinsic value based on historical trading multiples, growth rates, and future performance expectations. Being overvalued presents risks for investors, as the potential for a price correction exists if the market adjusts to more accurately reflect the company's fundamental value.

With a GF Valuation label indicating that ZM is fairly valued, it raises questions about the sustainability of the current price level. The market may be pricing in optimistic future growth that could be difficult to achieve, especially given the competitive landscape in the software sector. Investors should consider the margin of safety when investing in overvalued stocks, as the downside risk increases.

How Does ZM's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)8.7x25.5xForward P/E15.2xN/AZM's current P/E ratio of 8.7x is significantly lower (66% below) than its 5-year median P/E of 25.5x, indicating that the stock is trading well below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict of overvaluation, suggesting that while ZM may appear attractive based on earnings relative to its historical performance, the current stock price still reflects a premium over intrinsic value.

What Does ZM's GF Score™ Tell Us?The GF Score™ is a composite score that evaluates a stock based on various factors such as financial strength, profitability, growth potential, valuation, and momentum. ZM's GF Score™ of 86/100 indicates a strong overall rating, with notable strengths in financial strength and momentum. However, the valuation rank shows some weaknesses relative to its peers.

MetricRatingGF Score™86Financial Strength8/10Profitability7/10Growth7/10Valuation7/10Momentum10/10The scores suggest that ZM possesses strong financial health, demonstrated by its financial strength rating of 8/10. Its momentum rank is particularly impressive at 10/10, indicating robust recent price performance. However, the valuation rank, while still healthy at 7/10, highlights that the stock may not be priced to reflect its underlying fundamentals, especially given the current market context.

What Are Gurus and Insiders Doing with ZM?Currently, 7 gurus hold positions in ZM, with 4 adding to their stakes and 4 trimming their positions in recent quarters. This mixed activity suggests a divided sentiment among institutional investors regarding the stock's future prospects. In addition, insider activity shows a significant sell-off of $97.6 million over the past 12 months, with no insiders buying shares. This pattern may suggest a lack of confidence from insiders about the company's future performance, which could be a warning signal for potential investors.

The combination of guru activity and insider selling raises important considerations for investors. While the presence of multiple gurus indicates some level of institutional interest, the lack of buying activity from insiders may suggest caution concerning the stock's valuation and future growth potential.

What This Means for InvestorsBased on the GF Value™ analysis, Zoom Communications Inc ZM is currently overvalued at a price of $93.80 compared to its GF Value™ estimate of $85.68. The significant premium raises concerns about the sustainability of this price level, particularly in light of insider selling and historical valuation metrics. Investors may want to approach this stock with caution, considering the potential risks involved in its current valuation.

For more detailed information, you can visit the Zoom Communications Inc ZM stock page and explore the GF Value™ page for further insights.

Frequently Asked QuestionsWhat is ZM's GF Score™?

ZM's GF Score™ is 86/100, indicating a strong overall rating based on various financial metrics and growth potential.

Is ZM overvalued or undervalued?

ZM is currently overvalued according to the GF Value™ estimate, as the stock price of $93.80 exceeds the intrinsic value of $85.68 by 9.5%.

What is ZM's P/E ratio?

ZM has a P/E ratio of 8.7x based on trailing twelve months earnings, which is significantly below its 5-year median P/E of 25.5x, reflecting a lower valuation compared to its historical performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

In the latest trading session, Zoom Communications (ZM - Free Report) closed at $88.36, marking a +1.21% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.09%.

The video-conferencing company's stock has dropped by 9.7% in the past month, falling short of the Computer and Technology sector's gain of 3.58% and the S&P 500's loss of 0.24%.

Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.5, reflecting a 1.32% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 3.99% from the prior-year quarter.

ZM's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $5.09 billion. These results would represent year-over-year changes of +5.41% and +4.58%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Zoom Communications is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Zoom Communications is holding a Forward P/E ratio of 14. This signifies a discount in comparison to the average Forward P/E of 19.04 for its industry.

We can also see that ZM currently has a PEG ratio of 2.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ZM's industry had an average PEG ratio of 1.11 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Anthropic's initial public offering (IPO) appears to be on pace to take place in late October or early November. Right now, it is difficult for retail investors to get a stake in the artificial intelligence (AI) giant, which is one of the fastest-growing businesses in the world.

But there is an investment you could make that would get you sizable indirect exposure to Anthropic ahead of its listing. Zoom Communications (ZM -3.68%), the leading cloud video conferencing company, bought a stake in Anthropic back in May 2023, and that investment could now be worth billions.

Let's see whether that makes Zoom stock a buy right now.

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Zoom's stake in Anthropic, estimated Zoom made a $51 million investment in Anthropic in May 2023, and that has turned out to be one of the smartest decisions the company has ever made (maybe even smarter than its choice to go public right before the pandemic).

The valuation of Anthropic has been climbing, and Zoom has regularly reflected that growth on its balance sheet. As of the end of its last quarter, it valued its stake in the company at $3.13 billion, a figure it based on the $965 billion market value that Anthropic was credited with in its last private equity funding round.

If Anthropic goes public later this year as expected, it will be targeting a valuation of $2 trillion or higher. Depending on how the resulting dilution shakes out, Zoom's stake in Anthropic could be worth around $7 billion at the time of the IPO, up from just $51 million a few years ago. Compared to Zoom's current market cap of $27 billion, that stake would be 26% of its equity value.

Image source: Getty Images.

How is Zoom's business actually doing? Since its pandemic boom period, Zoom's business has gone through many gyrations. Today, its subscriptions for online video calls seem to have stabilized, albeit at a much lower revenue level, with churn stable at 2.9% last quarter compared to a year prior.

The company continues to make strides with its enterprise suite, which saw 8% revenue growth last quarter. Total remaining performance obligations grew by 14% to $4.5 billion. Enterprises are expanding their contracts with Zoom because of the new products it has launched in recent years, such as Zoom Phone, call center services, AI note-taking, and many other custom solutions for larger developers.

At the same time, it is now a genuinely profitable business, with a GAAP (generally accepted accounting principles) operating margin of 25% last quarter, and $1.9 billion in free cash flow over the last 12 months.

ZM Shares Outstanding (Quarterly) data by YCharts.

Is Zoom stock actually a buy? When evaluating Zoom stock, it is smart to weigh it relative to the company's enterprise value (EV), a metric that factors out its equity investments and the cash on its balance sheet. That's because with Zoom, its Anthropic stake and other equity investments in start-ups may be worth $7.5 billion at the time of the Anthropic IPO.

Subtract that from the $27 billion market cap, and you have $19.5 billion. Moreover, Zoom also had around $7.2 billion in cash and equivalents on its balance sheet. Subtract that from the market cap as well, and you get an enterprise value of $12.3 billion.

Over the last 12 months, Zoom has generated earnings before interest and taxes (EBIT) of $1.2 billion and free cash flow of $1.9 billion. That gives it an EV/EBIT ratio of just below 10 for a business with steadily growing revenues.

Plus, Zoom management is starting to use some of its cash to repurchase stock. Shares outstanding are now down 6% from their peak. Some investors might prefer a more aggressive pace of buybacks given the company's relatively massive cash pile and its nice free cash flow generation, but even the current level of repurchases adds to the argument that Zoom Video stock looks like a solid buy at today's prices.

Zoom Communications (ZM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this video-conferencing company have returned -14.5%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has gained 4.3%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Zoom is expected to post earnings of $1.50 per share for the current quarter, representing a year-over-year change of -1.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.8%.

The consensus earnings estimate of $6.21 for the current fiscal year indicates a year-over-year change of +4.9%. This estimate has changed +0.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $6.34 indicates a change of +2.1% from what Zoom is expected to report a year ago. Over the past month, the estimate has changed +1.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zoom.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Zoom, the consensus sales estimate of $1.28 billion for the current quarter points to a year-over-year change of +4%. The $5.09 billion and $5.29 billion estimates for the current and next fiscal years indicate changes of +4.6% and +3.9%, respectively.

Last Reported Results and Surprise HistoryZoom reported revenues of $1.28 billion in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $1.55 for the same period compares with $1.53 a year ago.

Compared to the Zacks Consensus Estimate of $1.27 billion, the reported revenues represent a surprise of +0.68%. The EPS surprise was +3.33%.

Over the last four quarters, Zoom surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Zoom is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Zoom. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

SAN JOSE, Calif., Sept. 14, 2026 (GLOBE NEWSWIRE) -- Zoom (NASDAQ: ZM) today introduced the next chapter of its Zoom Ahead marketing campaign with a new hero tv spot, “Zoom Got It Done.” The commercial highlights how Zoom's AI-first platform helps finish the work that originates in conversations.

Across both traditional and digital media, the effort focuses on demonstrating Zoom’s product breadth: an ecosystem that goes far beyond video meetings to include AI agents, automated note-taking, contact center solutions, a productivity suite, and more.

The new commercial picks up where last year's "I Use Zoom!" spot, featuring Bowen Yang, ended.

“The first ad showed that people prefer Zoom. This one shows why: Zoom actually helps users get work done,” said Kimberly Storin, CMO at Zoom. “Only Colin Jost and Kate McKinnon could turn that into a punchline instead of a product demo.”

Reframing Perception Through Comedy: The "Zoom Got It Done" Ad Spot
Kate McKinnon stars in the ad as an over-the-top CEO who orders her staff to find a way to destroy Zoom once and for all. But every scheme instead ends up proving the value of the Zoom platform in helping get things done — even its own destruction.

Produced in partnership with Colin Jost's No Notes Productions, the ad showcases a variety of Zoom use cases through a zany yet accurate comedic treatment, turning what could have been a feature readout into something clear, digestible, and funny.

“As someone who aspires to be an evil CEO someday, it was wonderful to live out my dream through Kate McKinnon in this Zoom campaign,” said Colin Jost, founder of No Notes Productions.

“Zoom Got It Done” debuts during Week 1 of the NFL regular season on Monday Night Football, then continues across linear and connected TV, out-of-home, digital, and social placements. The wider Zoom Ahead marketing campaign also continues, featuring creator partnerships, new branded content assets, and Zoom’s MLB sponsorship.

Defining Conversation to Completion
The goal of the Zoom Ahead campaign is to inform users of Zoom’s new and extended product capabilities, a concept the company calls “conversation to completion.”

Across tools like Meetings, Chat, Contact Center, and more, Zoom hosts millions of conversations every day. Through Zoom’s advanced AI capabilities, users can now harness the context of these conversations, and use them to move work towards completion. This allows users to automate things like follow-up emails, meeting summaries, and reports, or even bring that context into 3rd party platforms.

For more on Zoom's AI-first capabilities, www.zoom.com.

About Zoom
Zoom (NASDAQ: ZM) is an AI-first work platform built for human connection, designed to move conversations to completion. From solopreneurs to global enterprises, customers use Zoom to communicate, collaborate, and get work done across meetings, chat, phone, contact center, events, and more, all supported by Zoom AI. Founded in 2011, Zoom is headquartered in San Jose, California. For more information, visit zoom.com.

Press Contact
Rebecca Bernhard

[email protected]
[email protected]

Ameritas Advisory Services LLC purchased a new position in Zoom Communications, Inc. (NASDAQ:ZM – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 12,302 shares of the company’s stock, valued at approximately $1,062,000.

A number of other institutional investors have also added to or reduced their stakes in ZM. AQR Capital Management LLC grew its position in shares of Zoom Communications by 43.9% during the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock valued at $1,052,328,000 after purchasing an additional 3,718,186 shares in the last quarter. State Street Corp boosted its stake in Zoom Communications by 5.0% during the fourth quarter. State Street Corp now owns 7,582,924 shares of the company’s stock valued at $654,331,000 after buying an additional 363,776 shares during the last quarter. Norges Bank bought a new position in Zoom Communications during the fourth quarter valued at approximately $509,788,000. Geode Capital Management LLC grew its holdings in Zoom Communications by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company’s stock valued at $445,254,000 after buying an additional 152,862 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. grew its holdings in Zoom Communications by 7.9% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 4,637,903 shares of the company’s stock valued at $400,205,000 after buying an additional 341,104 shares in the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

Zoom Communications Stock Down 0.7% Shares of NASDAQ:ZM opened at $95.46 on Friday. The firm has a 50 day moving average of $96.67 and a 200 day moving average of $91.77. The company has a market capitalization of $27.85 billion, a price-to-earnings ratio of 8.84, a price-to-earnings-growth ratio of 4.45 and a beta of 1.04. Zoom Communications, Inc. has a 52 week low of $70.70 and a 52 week high of $114.74.

Zoom Communications (NASDAQ:ZM – Get Free Report) last announced its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%.The business had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter last year, the firm earned $1.53 EPS. The business’s revenue for the quarter was up 4.9% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. On average, sell-side analysts expect that Zoom Communications, Inc. will post 4.26 EPS for the current year. Insider Activity In other news, insider Velchamy Sankarlingam sold 7,644 shares of Zoom Communications stock in a transaction that occurred on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total value of $703,095.12. Following the transaction, the insider owned 148,403 shares of the company’s stock, valued at $13,650,107.94. The trade was a 4.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $90.80, for a total transaction of $770,801.20. Following the transaction, the chief financial officer owned 35,452 shares of the company’s stock, valued at approximately $3,219,041.60. This trade represents a 19.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 53,518 shares of company stock valued at $5,133,728. Company insiders own 8.83% of the company’s stock.

Wall Street Analyst Weigh In A number of brokerages have commented on ZM. Royal Bank Of Canada restated an “outperform” rating and issued a $130.00 target price on shares of Zoom Communications in a research note on Wednesday, August 26th. Jefferies Financial Group lowered their price target on Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a report on Wednesday, August 26th. Citigroup increased their price objective on Zoom Communications from $122.00 to $126.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Benchmark raised their price objective on Zoom Communications from $115.00 to $121.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. Finally, Robert W. Baird upped their target price on Zoom Communications from $95.00 to $105.00 and gave the stock an “outperform” rating in a report on Tuesday, May 19th. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $112.55.

Check Out Our Latest Analysis on Zoom Communications

Zoom Communications Company Profile (Free Report)

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based tools for video meetings, collaboration and business communications. The company was founded in 2011 by Eric Yuan and is headquartered in San Jose, California. It was previously known as Zoom Video Communications before adopting the Zoom Communications name.

Its product portfolio includes Zoom Meetings for video conferencing, Zoom Phone for cloud-based business telephony, Zoom Team Chat for workplace messaging, and Zoom Rooms for conference-room collaboration.

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Zoom Communications, Inc. (ZM) Goldman Sachs Communacopia + Technology Conference 2026 September 9, 2026 7:25 PM EDT

Company Participants

Michelle Chang - Chief Financial Officer

Presentation

Unknown Analyst

All right. I think we're good to get started than ever. Delighted to have Michelle from Zoom, Zoom CFO, here with us today. Thank you so much for coming.

Michelle Chang
Chief Financial Officer

My pleasure.

Question-and-Answer Session

Unknown Analyst

We'll get right into it. As Zoom combines its conversational context with data from customers' other applications, how does the platform evolve into a more strategic orchestration layer?

Michelle Chang
Chief Financial Officer

Yes. This is an important step for Zoom. And look, I think everyone is kind of reinventing themselves in an AI era, and it's certainly true for Zoom, not only in terms of just how we even reinvent our core in our meetings business, but we've broadened so much out of our meetings business, which I know we'll talk about today, and it's about reinventing that. So what Zoom talks about is there's going to be systems of engagement and systems of record. We're obviously coming at it from an engagement perspective. But really what matters to the customer is getting them to action because when we know there's action, then there's business value. And the good news is when we can deliver business value to our customers, it drives revenue.

So what we're really focused on within that is we sit at the context of so many conversations. The differential for Zoom in terms of an AI era and why we win is the shift to platform that you were mentioning is because there's so much that happens in human-to-human conversations that just gets lost. It never sits in a system of record. It never sits -- and even today, it is sort

Did you analyze how Zoom Communications (ZM - Free Report) fared in its international operations for the quarter ending July 2026? Given the widespread global presence of this video-conferencing company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Upon examining ZM's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter amounted to $1.28 billion, showing rise of 4.9%. We will now explore the breakdown of ZM's overseas revenue to assess the impact of its international operations.

Exploring ZM's International Revenue PatternsEMEA accounted for 15.6% of the company's total revenue during the quarter, translating to $199 million. Revenues from this region represented a surprise of -1.21%, with Wall Street analysts collectively expecting $201.44 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $194.92 million (15.7%) and $194.92 million (16%) to the total revenue, respectively.

Of the total revenue, $155 million came from APAC during the last fiscal quarter, accounting for 12.1%. This represented a surprise of +0.03% as analysts had expected the region to contribute $154.96 million to the total revenue. In comparison, the region contributed $150.51 million, or 12.2%, and $148.34 million, or 12.2%, to total revenue in the previous and year-ago quarters, respectively.

Revenue Projections for Overseas MarketsIt is projected by analysts on Wall Street that Zoom will post revenues of $1.28 billion for the ongoing fiscal quarter, an increase of 4% from the year-ago quarter. The expected contributions from EMEA and APAC to this revenue are 15.5%, and 12.1%, translating into $197.64 million, and $154.16 million, respectively.

For the full year, the company is expected to generate $5.09 billion in total revenue, up 4.6% from the previous year. Revenues from EMEA and APAC are expected to constitute 15.6% ($793.84 million), and 12.1% ($617.09 million) of the total, respectively.

In ConclusionRelying on global markets for revenues presents both prospects and challenges for Zoom. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

At present, Zoom holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Look at Zoom Communications' Recent Stock Price PerformanceOver the preceding four weeks, the stock's value has appreciated by 2.5%, against an upturn of 3.9% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Zoom among its entities, has appreciated by 7.5%. Over the past three months, the company's shares have seen a decline of 3.1% versus the S&P 500's 2.2% increase. The sector overall has witnessed a decline of 2.9% over the same period.

Zoom Communications Inc (NASDAQ:ZM) reported financial results for the second quarter after the market close on Tuesday. Here’s what you need to know from the print.

Zoom shares are under pressure. What’s driving ZM stock lower? Zoom Q2 Earnings HighlightsZoom reported revenue of $1.28 billion for the second quarter, beating the consensus estimate of $1.27 billion. The communications company posted second-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.48 per share, according to Benzinga Pro.

Total revenue was up 4.9% on a year-over-year basis. Zoom said enterprise revenue increased 7.8% year-over-year to $787.5 million, and online revenue was up 0.6% year-over-year to $489.7 million.

Online monthly average churn was 2.9% in the quarter. The company ended the quarter with 4,625 customers contributing more than $100,000 in trailing 12-month revenue, up 8.2% year-over-year.

“Our AI-first Customer Experience portfolio continues to scale, delivering high-double-digit ARR expansion, driven in part by strong adoption of Zoom Virtual Agent, whose customer count increased 256% year over year,” said Eric Yuan, founder and CEO of Zoom.

Net cash provided by operating activities was $494.8 million in the quarter and free cash flow came in at $472.4 million. Zoom exited the period with $7.2 billion in cash, cash equivalents and marketable securities, excluding restricted cash.

Zoom expects third-quarter revenue to be in the range of $1.275 billion to $1.28 billion, versus estimates of $1.282 billion. The company anticipates third-quarter adjusted earnings of $1.46 to $1.48 per share versus estimates of $1.50 per share. 

Zoom also raised its full-year guidance. The company now expects full-year revenue of $5.085 billion to $5.095 billion, versus estimates of $5.09 billion. Zoom now sees full-year adjusted earnings of $6.08 to $6.12 per share versus estimates of $6.08 per share.

Zoom’s management team will discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.

ZM Stock Falls After EarningsZoom shares were down 2.92% in after-hours, trading at $97.97 at the time of publication on Tuesday, according to Benzinga Pro.

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Zoom Communications (ZM - Free Report) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.5 per share. This compares to earnings of $1.53 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.33%. A quarter ago, it was expected that this video-conferencing company would post earnings of $1.41 per share when it actually produced earnings of $1.55, delivering a surprise of +9.93%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Zoom, which belongs to the Zacks Internet - Software industry, posted revenues of $1.28 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.68%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Zoom shares have added about 21.5% since the beginning of the year versus the S&P 500's gain of 11.8%.

What's Next for Zoom?While Zoom has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Zoom was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.52 on $1.28 billion in revenues for the coming quarter and $6.18 on $5.09 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Braze, Inc. (BRZE - Free Report) , is yet to report results for the quarter ended July 2026. The results are expected to be released on September 8.

This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Braze, Inc.'s revenues are expected to be $220.21 million, up 22.3% from the year-ago quarter.

The Pre-IPO Playbook: How to Cash in on Anthropic Before the BellZoom Communications NASDAQ: ZM reported second-quarter fiscal 2027 revenue growth of 4.9% year over year to $1.28 billion, exceeding the high end of its guidance by $7 million, as enterprise revenue rose 7.8% in its strongest growth rate in three years.

Founder and CEO Eric Yuan said the company’s enterprise momentum reflected execution against three priorities: enhancing Zoom Workplace with artificial intelligence, expanding AI-first customer-experience offerings, and developing new AI products. Licensed monthly active users of Workplace AI features increased 125% from a year earlier, he said.

Get Zoom Communications alerts:

Zoom’s Anthropic Stake and Huge Cash Pile Could Change the Story“AI is becoming increasingly embedded in how users work throughout the communication and collaboration life cycle,” Yuan said, describing Zoom’s strategy as an AI-first “system of action” designed to turn conversations and insights into workflows and business outcomes.

Enterprise platform expansion Enterprise revenue represented 62% of total revenue during the quarter, up two percentage points from a year earlier. The number of enterprise customers generating more than $100,000 in trailing-12-month revenue rose 8% year over year, and those customers accounted for 33% of company revenue. Enterprise trailing-12-month net dollar expansion was 99%, up one point from the prior-year period and unchanged from the prior quarter.

Zoom Stock: Leading the Video Market After Skype’s ExitYuan cited several customer wins across Zoom Workplace, Phone and Contact Center. One of the largest U.S. technology companies renewed Zoom Workplace and expanded annual recurring revenue by $1.9 million, while a U.S. wealth manager upgraded to Zoom Workplace Enterprise Premier and rolled out Zoom Phone across its workforce, replacing multiple vendors.

Zoom Phone continued to grow in the teens on an ARR basis. CFO Michelle Chang said all of the company’s top 10 Phone deals in the quarter involved competitive replacements. About half of the top 10 Phone deals also included Contact Center, highlighting what Chang described as growing integration between unified communications and customer-experience deployments.

Zoom’s remaining performance obligations increased 14% year over year to approximately $4.5 billion, driven by a 25% increase in non-current RPO. Chang said the growth reflected larger, longer-term and multi-product platform agreements. Deferred revenue grew 6% to $1.56 billion.

AI customer-experience products gain traction Zoom CX ARR grew at a high double-digit year-over-year rate, according to Yuan, and the business posted a record number of seven-figure ARR deals. Paid AI was included in nine of the top 10 Zoom CX deals, he said.

Zoom Virtual Agent, or ZVA, saw customer count rise more than 250% year over year. The offering can be deployed alongside Zoom Contact Center or as a standalone product, with voice and chat agents designed to complete workflows, resolve issues and transfer interactions to human agents with context when needed.

Chang said six of Zoom’s top 10 ZVA deals included Contact Center, while some customers began with the virtual-agent product independently. Seven of the top 10 Contact Center deals used the company’s Elite offering for AI-assisted agents, and four included ZVA.

Yuan said Zoom believes its combined UCaaS, CCaaS and virtual-agent portfolio differentiates the company amid rising competition in customer experience. He also pointed to Zoom’s AI technology, including speech-recognition capabilities, its federated AI approach and existing enterprise customer relationships. Earlier in the month, Zoom was named a leader in IDC MarketScape for agentic CCaaS, Yuan said.

New AI offerings and Common Room acquisition During the quarter, Zoom launched ZoomMate, an AI-focused productivity offering for Zoom Workplace users that includes agentic search and workflow capabilities. The University of Newcastle in Australia, an existing Zoom platform customer, added ZoomMate during the period, Yuan said.

Zoom Revenue Accelerator, the company’s revenue orchestration product, increased paid customers by 41% year over year. Zoom also completed its acquisition of Common Room in mid-July for $250 million, adding buyer-intelligence capabilities intended to identify in-market accounts, buyers and engagement opportunities.

Yuan said Common Room, combined with Zoom Revenue Accelerator and planned engagement and forecasting capabilities, could expand Zoom’s AI offerings for sales organizations. Chang said Common Room was incorporated into updated guidance but would have a de minimis impact relative to Zoom’s approximately $5 billion revenue base. She added that acquired early-stage companies do not initially carry Zoom’s existing margin profile.

Workvivo surpassed $100 million in ARR, according to Yuan. Zoom also introduced Workvivo HQ, an AI-native digital headquarters that combines employee communications, knowledge and actions. Yuan said Workvivo has won customers that were not previously Zoom customers, creating an opportunity to cross-sell into both the Workvivo and broader Zoom installed bases.

Profitability, cash flow and outlook On a non-GAAP basis, Zoom reported gross margin of 79.1%, compared with 79.8% a year earlier. Non-GAAP operating income increased 1% to $510 million, while operating margin was 40%, down from 41.3%. Chang said AI usage rose with newly introduced products, increasing expenses during the quarter, though the company intends to optimize costs in the second half and continues to target long-term gross margins around 80%.

Non-GAAP diluted earnings per share rose to $1.55, eight cents above the high end of guidance and two cents above the prior-year quarter. Operating cash flow totaled $495 million, while free cash flow was $472 million. Zoom ended the quarter with $7.2 billion in cash equivalents and marketable securities.

The company repurchased 3.7 million shares for approximately $352 million during the quarter. Since launching its $4.7 billion repurchase plan, Zoom has bought back 44.2 million shares for $3.4 billion.

Third-quarter outlook: Revenue of $1.275 billion to $1.28 billion; non-GAAP operating income of $510 million to $515 million; non-GAAP EPS of $1.46 to $1.48. Fiscal 2027 outlook: Revenue of $5.085 billion to $5.095 billion, representing 4.5% growth at the midpoint; non-GAAP EPS of $6.08 to $6.12. Free cash flow outlook: $1.78 billion to $1.82 billion, raised due to first-half cash-flow performance and lower expected capital expenditures. Chang said the higher annual revenue outlook assumes enterprise revenue grows faster than previously expected, partly offset by flat online-business growth. The company lowered its online-growth expectation from slight growth to flat, citing changes in how potential customers discover products at the top of the funnel, while noting that online churn remained low at 2.9%.

About Zoom Communications (NASDAQ:ZM)Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company's platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom's product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.

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Zoom Technologies Inc (NASDAQ:ZOOM), the US video conferencing company, delivered a quarter that beat Wall Street on both revenue and earnings, and the shares still fell around 5% in after-hours trading.

Revenue for the three months to July reached $1.28 billion, up 4.9% on a year earlier, while enterprise revenue rose 7.8% to $787.5 million.

Adjusted earnings came in at $1.55 a share, ahead of the $1.48 analysts had modelled. The problem was the guidance gap.

Underwhelming

Zoom pointed to third-quarter revenue of roughly $1.278 billion at the midpoint, marginally below the $1.28 billion the market expected, and adjusted earnings of $1.46 to $1.48 against a $1.50 consensus.

Full-year revenue guidance of $5.085 billion to $5.095 billion was left broadly in line with forecasts, with the earnings range nudged slightly higher to $6.08 to $6.12.

At the midpoint, the annual revenue figure moved by about $5 million, or roughly 0.1%, on the outlook issued in May.

For a company whose shares had climbed 18% this year on an artificial intelligence narrative, that is close to no upgrade at all.

Will the pivot work?

Zoom's argument is that it has stopped being a meetings tool and become a communications platform, selling phone systems, contact centre software and AI assistants into the same customer base.

The company said licensed monthly active users of its AI features in the Workplace product grew 125% year on year.

Customer numbers for Zoom Virtual Agent, an automated system that handles inbound customer queries, rose 256%.

For UK businesses running hybrid operations, the practical shift is that call routing, transcription, note-taking and first-line customer support increasingly sit inside one subscription rather than several.

That consolidation is the sales pitch, and it is working on the enterprise side.

Enterprise customers now account for 62% of total revenue, two percentage points more than a year ago, and the number of customers spending more than $100,000 a year rose 8% to 4,625.

Where the growth is not

Online revenue, meaning individuals and small businesses paying by card, rose 0.6% to $489.7 million.

Average monthly churn in that division ran at 2.9%, unchanged on the same quarter last year.

Almost all incremental growth is now coming from one half of the business, and that half faces Microsoft Teams, Cisco's Webex and a crowded contact centre market.

There is also a cost question, because the AI features rely on models supplied by third parties, which carries margin implications as usage scales.

The read-across

Zoom is not London-listed, but plenty of British investors hold it through US technology funds and global index trackers, and the pattern here is the relevant one.

Software companies are being asked to show that AI adoption converts into revenue growth, not just engagement metrics.

Zoom generated free cash flow of $472.4 million in the quarter and ended it with $7.2 billion in cash and marketable securities, buying back about 3.7 million shares.

That is a profitable, cash-rich business growing at less than 5%. The market has decided it will not pay an AI multiple for that until the top line moves.

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Zoom delivered a cleaner quarter than the Street expected, raised its full-year targets, and still managed to send its own stock tumbling 6% in a sector that barely flinched. The culprit traces to a single line in the guidance.

A soft third-quarter profit outlook is overshadowing an otherwise clean beat at Zoom Communications (NASDAQ:ZM | ZM Price Prediction), sending the video collaboration name lower even as the broader software tape barely moves. Zoom stock is down 6% to $95.08 Wednesday morning after the company delivered a Q2 FY2027 double beat, raised its full-year outlook, and then guided Q3 profit below the Street.

Meanwhile, the iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is up 0.1% to $101.97, barely budging against Zoom’s slide. This is a Zoom-specific reset, not a sector selloff. Shares of the video collaboration company were up 17% year to date through Tuesday’s close.

Soft Q3 Profit Guide Overshadows a Double Beat Zoom’s Q2 FY2027 revenue came in at $1.28 billion, up 4.9% year over year, against a $1.27 billion consensus. Adjusted EPS of $1.55 topped a $1.48 estimate. Full-year FY2027 guidance was raised to revenue of $5.085 billion to $5.095 billion, adjusted EPS of $6.08 to $6.12, and free cash flow of $1.78 billion to $1.82 billion.

The catalyst is the Q3 line. Zoom guided Q3 adjusted EPS to $1.46 to $1.48 against a $1.50 estimate, with revenue of $1.275 billion to $1.28 billion versus a $1.282 billion consensus. That EPS step-down from Q2’s $1.55 print, paired with a Q2 non-GAAP operating margin of 40%, compared with 41.3% a year earlier, is what has investors trimming their exposure.

Enterprise Momentum, Online Stagnation Zoom’s Enterprise revenue rose 7.8% to $787.5 million, its strongest growth rate in three years, and accounted for 62% of total revenue. Online revenue, sold directly through Zoom’s website, rose just 0.6% to $489.7 million. Customers generating more than $100,000 in trailing 12-month revenue climbed 8.2% to 4,625, and net dollar expansion ticked up to 99% from 98%.

CEO Eric S. Yuan stated, “Total revenue grew 4.9% year over year, anchored by 7.8% growth in Enterprise revenue, its strongest growth rate in three years.” Remaining performance obligations rose 14% to $4.5 billion, and Zoom repurchased 3.7 million shares for $352 million during the quarter. The company ended Q2 with $7.2 billion in cash, equivalents and marketable securities.

The muted peer tape reinforces the single-company read for Zoom. Atlassian (NASDAQ:TEAM) stock is up 0.6% to $167.47, while HubSpot (NYSE:HUBS) stock is down 1% to $235.24 and Monday.com (NASDAQ:MNDY) stock is down 2% to $91.56. None of those moves look like sector-wide selling.

What to Watch Investors can watch for whether Zoom’s Enterprise acceleration extends into Q4 and whether management optimizes AI infrastructure costs in the second half, after higher usage-related expenses pressured Q2 margins. The $250 million Common Room deal and Workvivo, which surpassed $100 million in annual recurring revenue, add optionality even as Online growth stays essentially flat.

Position sizing in Zoom stock should stay modest. The Enterprise engine looks durable and the buyback backdrop is supportive, with approximately $1.3 billion of authorized share repurchase remaining. However, margin pressure from AI compute and flat Online growth argue against outsized bets on Zoom shares until the Q3 profit guide is proved conservative.

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Zoom Communications Inc. (NASDAQ:ZM) on Tuesday reported better-than-expected financial results for the second quarter but issued soft guidance for the third quarter.

Zoom reported revenue of $1.28 billion for the second quarter, beating the consensus estimate of $1.27 billion. The communications company posted second-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.48 per share, according to Benzinga Pro.

Zoom expects third-quarter revenue to be in the range of $1.275 billion to $1.28 billion, versus estimates of $1.282 billion. The company anticipates third-quarter adjusted earnings of $1.46 to $1.48 per share versus estimates of $1.50 per share.

"Our AI-first Customer Experience portfolio continues to scale, delivering high-double-digit ARR expansion, driven in part by strong adoption of Zoom Virtual Agent, whose customer count increased 256% year over year," said Eric Yuan, founder and CEO of Zoom.

Zoom shares dipped 7% to trade at $93.89 on Wednesday.

These analysts made changes to their price targets on Zoom following earnings announcement.

Jefferies analyst Samad Samana maintained the stock with a Buy and lowered the price target from $118 to $116. RBC Capital analyst Rishi Jaluria reiterated the stock with an Outperform rating and maintained a $130 price target. BTIG analyst Allan Verkhovski reiterated the stock with a Buy and maintained a $125 price target. Needham analyst Joshua Reilly reiterated the stock with a Buy and maintained a $130 price target. Cantor Fitzgerald analyst Thomas Blakey reiterated the stock with a Neutral and maintained a $104 price target. Trending

Considering buying ZM stock? Here’s what analysts think:

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