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
New research from Zoom shows that workers dread returning from vacation, and that dread is changing how, or whether, they take time off at all
SAN JOSE, Calif., Sept. 01, 2026 (GLOBE NEWSWIRE) -- The hardest part of taking time off might be the anticipation of what awaits workers when they get back, from an overflowing inbox and a calendar packed with catch-up meetings to important context lost while they were away.
Zoom’s Out of Office Index, a national study conducted by Morning Consult, found that 61% of knowledge workers dread the work waiting for them after PTO and 48% feel anxious before their time away even begins.
That pressure is changing how people use their time away, with 57% leaving at least some available PTO unused over the past year, 42% considering skipping time off altogether because of work stress, and 68% saying they would rather monitor their inbox during vacation than return to an inbox with hundreds of unread emails.
With its products at the center of daily workplace communication, Zoom commissioned the study to better understand a workplace culture tension around productivity and well-being. Workers want meaningful time away, but many worry that disconnecting will leave them behind when they return.
“Taking time off should give people room to recharge, yet many workers spend their vacation worrying about what will be waiting when they return,” said Whitney Magnuson, Zoom’s Head of Brand Strategy and Activation. “The Out of Office Index puts numbers behind a workplace experience that people recognize, and it captures how that anxiety affects individuals, managers, and teams.”
To help close that gap, Zoom built ZoomMate's new Out of Office Workflows, designed to help workers prepare before they leave and catch up quickly when they return.
The Anxiety Around Time Off Is Real and Measurable
For many workers, preparing for PTO means bracing for the return, with 48% feeling anxious before vacation begins and 65% working extra hours beforehand to stay ahead.
After they return, workers report the following:
61% dread the amount of work waiting for them.77% say unread emails and messages are a source of stress.88% need at least one full day to recover after returning.53% need three or more days to feel fully caught up. Gen Z workers report especially high levels of anxiety:
52% feel anxious before PTO.52% have considered skipping vacation because of work stress.65% left at least some PTO unused last year.
Managers are also heavily affected:
53% feel anxious before taking time off, compared with 36% of individual contributors.70% work extra hours before they leave.60% left at least some PTO unused.
For Organizations, One Person’s Time Off Becomes Everyone’s Problem
When a key employee steps away, the effects can spread across the team, especially when information and decisions remain tied to one person.
71% of workers say they at least sometimes experience work delays when a teammate is out.75% say work tied to a key teammate stalls for at least a day when that person is out.65% encounter collaboration challenges.60% report operational inefficiencies when a colleague is away. That pressure is shaping investment decisions, with 76% of IT decision-makers saying they plan to invest in team productivity and work-continuity tools within the next 12 months. Organizations are looking for better ways to preserve context and keep work moving when someone steps away.
Workers Want AI to Help Them Catch Up
AI support is especially appealing around the return to work:
82% want AI to summarize what they missed.80% want automatic recaps of decisions made in their absence.79% want AI-generated to-do lists for their first day back.78% would be more likely to fully disconnect if AI reliably caught them up upon return.76% would use more of their available PTO if AI reliably helped them catch up.69% say AI tools could improve their work-life balance. ZoomMate Carries the Conversation Forward, So People Don’t Have To
Much of what a returning employee has to reconstruct begins in a conversation, whether it is a meeting they missed, a decision made in a thread, or a customer call that changed a priority. Catching up means understanding what happened in those conversations and what needs to happen next.
ZoomMate’s new Out of Office Workflows help employees organize what happened while they were away and decide where to begin.
Before You Go. Organizes open projects, key contacts, and pending decisions in a “While I’m Out” Canvas.Welcome Back. Searches meetings, documents, and Zoom Chat threads from the time an employee was away, surfaces key decisions and priorities, and creates a prioritized “Day 1 Plan.”Missed Messages Digest. Creates a prioritized digest of Zoom Chat messages, including urgent items and mentions, with suggested replies for time-sensitive conversations.Action Item Triage. Brings together action items from an employee’s absence and organizes them into Do Today, Delegate, Defer, or Done. The workflows help returning employees understand what happened, identify what needs attention, and decide where to begin.
Methodology
Zoom's Out of Office Index was conducted by Morning Consult, surveying 1,000 U.S. knowledge workers and 500 U.S. IT decision-makers in 2026. The margin of error is plus or minus 3 percentage points for knowledge workers and plus or minus 4 percentage points for IT decision-makers. To learn more about Zoom’s Out of Office Index, visit zoom.com/en/lp/summer.
About Zoom
Zoom (NASDAQ: ZM) is an AI-first work platform built for human connection, purposefully designed to move conversations to completion. From solopreneurs to global enterprises, customers choose Zoom to communicate, collaborate, and get work done across meetings, chat, phone, contact center, events, and more, with the built-in assistance of Zoom AI Companion. Founded in 2011, Zoom is headquartered in San Jose, California. For more information, visit zoom.com.
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.
Ancora Advisors LLC bought a new stake in shares of Zoom Communications, Inc. (NASDAQ:ZM – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 5,770 shares of the company’s stock, valued at approximately $498,000.
A number of other large investors also recently made changes to their positions in the business. Plato Investment Management Ltd acquired a new stake in shares of Zoom Communications during the 2nd quarter valued at $603,000. Handelsbanken Fonder AB increased its holdings in Zoom Communications by 6.6% in the second quarter. Handelsbanken Fonder AB now owns 200,418 shares of the company’s stock worth $17,298,000 after buying an additional 12,457 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. raised its position in Zoom Communications by 133.3% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock valued at $30,000 after acquiring an additional 200 shares in the last quarter. Strategic Investment Solutions Inc. IL lifted its stake in Zoom Communications by 400.0% in the second quarter. Strategic Investment Solutions Inc. IL now owns 500 shares of the company’s stock valued at $43,000 after acquiring an additional 400 shares during the last quarter. Finally, PensionDanmark Pensionsforsikringsaktieselskab grew its position in Zoom Communications by 4.5% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 58,359 shares of the company’s stock worth $5,037,000 after acquiring an additional 2,500 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.
Trending Headlines about Zoom Communications Here are the key news stories impacting Zoom Communications this week:
Positive Sentiment: Zoom reported fiscal Q2 revenue of $1.28 billion, up 4.9% year over year, and adjusted EPS of $1.55, exceeding analyst estimates of $1.27 billion and $1.48, respectively. Enterprise revenue grew 7.8% to $787.5 million, while remaining performance obligations increased 14%, indicating solid demand from larger customers. Zoom Communications Q2 2027 Earnings Call Summary Positive Sentiment: ZM recently moved above its 50-day moving average, a technical development that can signal improving short-term momentum and may attract additional technical buyers. Zoom Communications Breaks Above 50-Day Moving Average Positive Sentiment: Some analysts remain constructive: Needham reiterated a “Buy” rating, while another analysis cited Zoom’s cash position, 24.6% GAAP operating margin and potential value from its Anthropic investment as reasons for optimism. Needham Reiterates Buy Rating Neutral Sentiment: Analyst views remain mixed. Citizens JMP assigned a “Market Perform” rating and KeyCorp reaffirmed “Sector Weight,” suggesting the earnings beat may already be reflected in the stock’s valuation. Citizens JMP Market Perform Rating Negative Sentiment: Growth remains uneven: online revenue increased only 0.6% to $489.7 million, and management’s third-quarter profit outlook was weaker than expected. The cautious guidance overshadowed the quarterly earnings beat and raised concerns about Zoom’s ability to accelerate companywide growth through AI and enterprise products. Zoom Enterprise and Online Revenue Analysis Zoom Communications Stock Down 1.8% Shares of NASDAQ ZM opened at $98.43 on Friday. The company has a market cap of $28.86 billion, a PE ratio of 9.11, a price-to-earnings-growth ratio of 5.12 and a beta of 1.00. Zoom Communications, Inc. has a twelve month low of $70.70 and a twelve month high of $114.74. The business’s 50 day moving average price is $94.65 and its two-hundred day moving average price is $91.44. Zoom Communications (NASDAQ:ZM – Get Free Report) last released its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.48 by $0.07. The business had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%.The firm’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same period last year, the firm posted $1.53 EPS. 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. As a group, research analysts anticipate that Zoom Communications, Inc. will post 4.25 EPS for the current fiscal year.
Insider Activity In related news, insider Velchamy Sankarlingam sold 7,644 shares of the stock in a transaction that occurred on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total transaction of $703,095.12. Following the sale, the insider owned 148,403 shares in the company, valued at approximately $13,650,107.94. This trade represents a 4.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 12,100 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $100.17, for a total value of $1,212,057.00. Following the completion of the sale, the chief executive officer directly owned 22,998 shares in the company, valued at approximately $2,303,709.66. This represents a 34.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 56,155 shares of company stock worth $5,654,761. Insiders own 8.83% of the company’s stock.
Wall Street Analysts Forecast Growth ZM has been the subject of a number of research analyst reports. BTIG Research reissued a “buy” rating and set a $125.00 target price on shares of Zoom Communications in a research report on Monday, August 24th. Jefferies Financial Group decreased their target price on Zoom Communications from $118.00 to $116.00 and set a “buy” rating on the stock in a research report on Wednesday. UBS Group upped their target price on Zoom Communications from $105.00 to $115.00 and gave the company a “neutral” rating in a research note on Thursday, August 20th. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a research report on Wednesday. Finally, Robert W. Baird boosted their price objective on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. Sixteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Zoom Communications has an average rating of “Moderate Buy” and a consensus price target of $112.55.
Check Out Our Latest Stock Report on Zoom Communications
Zoom Communications Company Profile (Free Report)
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 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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The video conferencing company also bumped up its guidance for the year. However, its earnings guidance for the current quarter came in short of Wall Street's forecast.
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Zoom Communications (ZM.O) forecast third-quarter profit below Wall Street expectations on Tuesday, signaling stiff competition was squeezing the video-conferencing company even as it ramps up AI features on its services.
Shares of the San Jose, California-based company fell 3.8% in extended trading.
Here are more details:
Zoom has been rolling out AI tools, including an AI Companion assistant, a meeting receptionist assistant and its suite of enterprise-focused AI features under "Zoom AI Services" to attract more customers.
But the company has been facing stiff competition from rivals such as Microsoft's (MSFT.O) Teams and Alphabet's (GOOGL.O) Google Meet.
Zoom forecast third-quarter revenue in the range of $1.275 billion to $1.28 billion, compared with analysts' average estimate of $1.28 billion, according to data compiled by LSEG.
The company forecast third-quarter adjusted profit between $1.46 and $1.48 per share, below analysts' average estimate of $1.50 per share.
The company posted second-quarter revenue of $1.28 billion, above analysts' average estimate of $1.27 billion, according to LSEG.
Second-quarter adjusted profit per share came in at $1.55, above analysts' average estimate of $1.48.
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.
For the quarter ended July 2026, Zoom Communications (ZM - Free Report) reported revenue of $1.28 billion, up 4.9% over the same period last year. EPS came in at $1.55, compared to $1.53 in the year-ago quarter.
The reported revenue represents a surprise of +0.68% over the Zacks Consensus Estimate of $1.27 billion. With the consensus EPS estimate being $1.50, the EPS surprise was +3.33%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Zoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Customers >$100K TTM Revenue: 4,625 compared to the 4,572 average estimate based on two analysts.Current Remaining Performance Obligation (RPO): $2.58 billion versus the two-analyst average estimate of $2.54 billion.Revenue- Online: $489.7 million versus the three-analyst average estimate of $492.94 million. The reported number represents a year-over-year change of +0.6%.Revenue- Enterprise: $787.5 million versus the three-analyst average estimate of $774.78 million. The reported number represents a year-over-year change of +7.8%.View all Key Company Metrics for Zoom here>>>
Shares of Zoom have returned +14.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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.
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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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With U.S. stock futures trading mixed this morning on Wednesday, some of the stocks that may grab investor focus today are as follows:
Wall Street expects Nvidia Corp. (NASDAQ:NVDA) to post quarterly earnings of $2.09 per share on revenue of $92.01 billion after the closing bell, according to data from Benzinga Pro. Nvidia shares rose 0.3% to $213.70 in after-hours trading. Intuit Inc. (NASDAQ:INTU) reported upbeat fourth-quarter financial results but issued FY27 guidance below estimates. Intuit reported fourth-quarter revenue of $4.35 billion, beating analyst estimates of $4.27 billion. The QuickBooks, Credit Karma and TurboTax parent company posted adjusted earnings of $4.03 per share for the quarter, beating estimates of $3.58 per share, according to Benzinga Pro. Intuit shares tumbled 10.2% to $320.88 in the after-hours trading session. Analysts are expecting Williams-Sonoma Inc. (NYSE:WSM) to post quarterly earnings of $2.08 per share on revenue of $1.93 billion before the opening bell. Williams-Sonoma shares slipped 1.5% to $231.22 in the after-hours trading session. Check out our premarket coverage here
Zoom Communications Inc. (NASDAQ:ZM) reported better-than-expected financial results for the second quarter but issued soft guidance for the third quarter. 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 shares dropped 5% to $95.92 in the after-hours trading session. Analysts expect J.M. Smucker Co. (NYSE:SJM) to post quarterly earnings of $2.22 per share on revenue of $2.13 billion before the opening bell. Smucker shares fell 0.3% to close at $125.45 on Tuesday. Photo via Shutterstock
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Zoom Video stock suffered a big reversal this week, ending the recent bull run that pushed it to the highest level in months. It dropped by nearly 4% on Tuesday, and then by 5.7% in the premarket session. It reached a low of $95, down by nearly 15% from its highest point this year.
Zoom, the popular video communications company, published a mixed earnings report, which showed that its business was still growing despite the rising competition from companies like Google, Microsoft, and Cisco.
The company’s revenue rose by 4.9% in the second June quarter to $1.27 billion, with its enterprise segment hitting $788 million. Its monthly churn remained at 2.9%.
However, the company’s gross and operating margin moved downwards during the quarter as it continued to spend more on AI. The gross margin dropped to 77.2%, while the operating margin moved downwards a bit to 24.6%.
A key bright spot for the company is its investments in AI tools, with Zoom Workplace with AI adding millions of users since its launch. It is also benefiting from Zoom Phone, a product that makes it easy for companies to communicate with clients and partners from around the world. According to its website, Zoom Phone has over 10 million active users. Eric Yuan, the CEO said:
“We are embedding AI across our platform to turn conversational context into action and deliver what customers want: real AI value that produces outcomes. “
READ MORE: Zoom Video stock: Wyckoff Theory points to a 100% surge
Zoom Video stock dropped because its guidance was relatively softer than expected. The company expects that its Q3 revenue will be between $1.27 billion and $1.28 billion. According to Yahoo Finance, the average estimate is that its quarterly revenue will be $1.27 billion. Also, its forward EPS guidance of between $1.46 and $1.48 was lower than expected.
Still, on the positive side, Zoom is still trading at bargain, with its forward PE ratio being 17.3, much lower than the technology sector median. The stock, however, may remain under pressure until the company demonstrates stronger revenue and profitability growth.
In this case, it needs to constantly outperform the estimates. Yahoo Finance data shows that the average revene growth for the next two years is about 4%.
ZM stock chart | Source: TradingView
The daily chart shows that the ZM stock has been in a strong upward trend since June 25 when it bottomed at $82.21. This rebound happened after it formed a double-bottom pattern whose neckline was at $94.37. A double-bottom is one of the most common bullish reversal sign in technical analysis.
Before the earnings report, the stock was forming a bullish pennant pattern, which is made up of a vertical line and a symmetrical triangle. As such, the crash has invalidated this pattern.
Therefore, the stock will likely remain under pressure in the near term. It may drop further to the psychological level of $90. In the long term, however, the stock may rebound and retest the resistance level of $110 once the post-earnings sell-off ends.
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.
Contact [email protected] for any questions or corrections.
Zoom Communications ZM is experiencing a decline in trading, despite surpassing Q2 expectations. Investors are concerned about the company's softer Q3 guidance and ongoing challenges in its Online business, overshadowing the positive performance from the Enterprise segment. The Q3 adjusted EPS guidance is set at $1.46-$1.48, falling short of the $1.50 consensus from FactSet. Additionally, the revenue guidance of $1.275-$1.280 billion is slightly below the expected $1.282 billion, despite an improved full-year forecast for revenue, EPS, and free cash flow.
Enterprise revenue reached $787.5 million, marking a 7.8% year-over-year increase, the strongest growth in three years, and outpacing total revenue growth of 4.9%. Customers contributing over $100,000 in trailing revenue rose by 8.2%, making up 33% of total revenue, indicating success in cultivating larger, multi-product relationships. The non-GAAP gross margin dipped by 70 basis points to 79.1%, while the non-GAAP operating margin decreased from 41.3% to 40.0%. Although ZM remains profitable, increased investments in AI are raising compute costs before new products can generate sufficient revenue to maintain previous margins. There was a significant increase in the adoption of AI features, with licensed monthly active users rising by 125% and Zoom Virtual Agent customers growing by 256%. Paid AI was included in nine of the ten largest Zoom CX deals, and Zoom CX annual recurring revenue (ARR) continued to grow at a high-double-digit rate, indicating that AI is starting to contribute to revenue. Remaining performance obligations (RPO) grew by 14% to approximately $4.5 billion, driven by a 25% increase in non-current RPO, while deferred revenue increased by 6%, surpassing previous expectations of 2-3%. However, Enterprise net dollar expansion remained at 99%, highlighting some contraction within the existing customer base. Management has also adjusted its FY27 Online revenue assumption from slight growth to flat due to weaker top-of-funnel activity. ZM has raised its FY27 adjusted EPS guidance to $6.08-$6.12 from $5.96-$6.00 and slightly increased revenue guidance to $5.085-$5.095 billion. The free cash flow guidance has been lifted to $1.78-$1.82 billion, reflecting strong first-half performance and lower capital expenditure expectations, although Q2 free cash flow fell year-over-year to $472 million.The challenge for ZM lies in balancing its enterprise transformation and achieving sufficient consolidated growth to meet investor expectations. While the company's strategies, including faster Enterprise growth and robust RPO, are promising, the recent acquisition of Common Room has not significantly impacted revenue. The immediate Q3 forecast suggests a growth deceleration to approximately 3.9%, raising concerns about the sustainability of growth. Key indicators to watch include whether Enterprise net expansion exceeds 100%, stabilization of Online customer acquisition, faster scaling of AI revenue compared to compute costs, and the conversion of strong RPO into consistent revenue growth.
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].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
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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Zoom 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.
“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.
Yuan 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.
Zoom Communications is upgraded to a buy rating after recent underperformance eases valuation concerns. ZM's 4.9% YoY revenue growth, strong cash position, and 24.6% GAAP operating margin highlight operational resilience despite modest top-line growth. The upcoming Anthropic IPO could serve as a key catalyst, with ZM's stake and net cash comprising about 40% of the market cap.
Zoom Communications (ZM - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ZM broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Over the past four weeks, ZM has gained 8.6%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
Looking at ZM's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting ZM on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
Zoom Communications (NASDAQ:ZM) looks to continue a long streak of beating analyst estimates for revenue when the company reports second-quarter financial results Tuesday after market close.
Here are the earnings estimates, what analysts are saying ahead of the report and the key items to watch.
Zoom Q2 Earnings EstimatesAnalysts expect Zoom to report second-quarter revenue of $1.27 billion, up from $1.22 billion in last year’s second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in 15 straight quarters.
Analysts expect Zoom to report second-quarter earnings per share of $1.48, down from $1.53 in last year’s second quarter.
The company has beaten analyst estimates for earnings per share in nine of the last 10 quarters overall.
Read Next
Zoom Analyst RatingsBTIG analyst Allan Verkhovski expects Zoom to show strong fundamentals and acceleration in the Enterprise segment when the company reports second quarter financial results.
The analyst maintained a Buy rating with a price target of $125 ahead of the report.
"ZM shares are now up 29% YTD, which we believe has been driven by top-line acceleration, relatively low AI disruption risk, and the growing value of its stake in Anthropic (private)," Verkhovski said.
The analyst also said Zoom could highlight the financial impact of its acquisition of Common Room, an AI intelligence platform.
"Overall, we anticipate another strong quarter, and we continue to view ZM as an attractive stock to own, especially through Anthropic’s IPO process."
Here are other analyst ratings on Zoom stock and their price targets:
Cantor Fitzgerald: Maintained Neutral rating, with price target of $104 Rosenblatt: Maintained Buy rating, with price target of $130 UBS: Maintained Neutral rating, raised price target from $105 to $115 Key Items to WatchZoom’s consistent analyst beats and enterprise growth could be key items to watch Tuesday.
The biggest catalyst for Zoom stock is likely the quiet one and the one management won’t cover a ton. Zoom invested $51 million in Anthropic back in 2023 and maintains a stake in the AI company today.
Anthropic remains one of the hottest investment stories around amid IPO speculation and a potential $2 trillion valuation.
Benzinga previously highlighted Zoom as a backdoor play for Anthropic. When Anthropic reached a $900 billion valuation in May, analysts estimated Zoom’s position was worth between $4.11 billion and $11.31 billion (Wedbush) or $5.14 billion to $10.28 billion (Baird).
Baird previously called Zoom’s stake a “hidden gem” and said that the stake in Anthropic could be more valuable than Zoom’s revenue and AI offerings in the future.
A $2 billion valuation for Anthropic would more than double those valuation ranges to the following:
Wedbush estimate: $9.12 billion to $25.11 billion Baird: $11.41 billion to $22.82 billion With a current market capitalization of $31.5 billion, Zoom stock could be undervalued based on the Anthropic stake.
Analysts may start asking questions about the stake, what amount Zoom values it at, what the partnership looks like, and if Zoom plans on selling after a potential IPO.
In the first quarter, Zoom reported enterprise revenue up 7.2% year-over-year and online revenue up 2.8% year-over-year.
Strong growth in both these segments in the second quarter and any commentary on the Anthropic stake could provide a bullish case for the stock moving forward.
Price ActionZoom stock is down 1.8% to $105.46 on Monday versus a 52-week trading range of $70.70 to $114.74. The company’s stock price is up 22.1% year-to-date.
Zoom Communications, Inc. (NASDAQ:ZM) will release its second earnings report after the closing bell on Tuesday, Aug. 25.
Analysts expect the San Jose, California-based company to report quarterly earnings of $1.48 per share, down from $1.53 per share in the year-ago period. The consensus estimate for ZM’s quarterly revenue is $1.27 billion. It reported $1.22 billion last year, according to Benzinga Pro.
Zoom, last month, announced the appointment of Carlos Quaderi as Head of Asia Pacific.
Zoom Communications shares gained 1.1% to close at $107.43 on Friday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Rosenblatt analyst Catharine Trebnick maintained a Buy rating with a price target of $130 on Aug. 21, 2026. This analyst has an accuracy rate of 75%. UBS analyst Taylor McGinnis maintained a Neutral rating and raised the price target from $105 to $115 on Aug. 20, 2026. This analyst has an accuracy rate of 54%. Needham analyst Joshua Reilly maintained a Buy rating with a price target of $130 on July 2, 2026. This analyst has an accuracy rate of 62%. RBC Capital analyst Rishi Jaluria maintained an Outperform rating with a price target of $130 on June 30, 2026. This analyst has an accuracy rate of 56%. HSBC analyst Stephen Bersey maintained a Buy rating and increased the price target from $107 to $133 on June 2, 2026. This analyst has an accuracy rate of 61%. Trending
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Considering buying ZM stock? Here’s what analysts think:
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ZM 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.
Key Takeaways Zoom Video enters Q2 with Enterprise revenue growth and stronger high-value customer gains.AI Companion adoption surged 184%, while My Notes surpassed 1.5 million licensed users.Online growth stayed soft as churn rose, while foreign-exchange volatility remained a headwind. Zoom Video Communications (ZM - Free Report) is slated to release second-quarter fiscal 2027 results on Aug. 25.
Zoom expects its second-quarter fiscal 2027 revenues to be between $1.265 billion and $1.270 billion. Revenues on a constant-currency basis are expected to be between $1.262 billion and $1.267 billion.
The Zacks Consensus Estimate for the top line is currently pegged at $1.27 billion, indicating growth of 4.22% from the year-ago quarter.
Non-GAAP income from operations is expected to be between $508 million and $513 million. Non-GAAP earnings per share are expected to be in the range of $1.45-$1.47, based on approximately 304 million weighted-average shares outstanding.
The consensus mark for earnings has remained steady at $1.50 per share over the past 30 days, indicating a decline of 1.96% year over year.
ZM’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the same once, delivering an average surprise of 6.3%.
What Our Model UnveilsPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
ZM has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s see how things have shaped up for this announcement.
Factors to ConsiderSeveral factors appeared positioned to shape Zoom Communications' second-quarter fiscal 2027 results. On the positive side, Enterprise momentum carried into the quarter, producing 7.2% year-over-year growth and a trailing 12-month net dollar expansion rate of 99% for Enterprise customers as of the fiscal first quarter, alongside an 8.2% year-over-year increase in customers contributing more than $100,000 in trailing 12-month revenues.
Expanding AI monetization is expected to support results, with paid AI Companion adoption up 184% year over year and My Notes surpassing 1.5 million licensed users within months of launch, indicating continued contributions from AI-attached seats and new AI revenue streams.
Profitability trends heading into the quarter, including a 41.1% non-GAAP operating margin and $500.5 million in free cash flow in the prior quarter, along with the board's incremental $1 billion buyback authorization on top of $625 million remaining, further signaled capacity for continued margin discipline and capital return.
On the negative side, Online revenue growth had been comparatively soft at 2.8% year over year entering the quarter, with monthly churn ticking up to 3% from 2.8% a year earlier, a dynamic that is expected to have persisted given uneven small-business demand. Continued foreign-exchange volatility was also flagged as a headwind to reported results, though not to constant-currency results. Against this backdrop, guidance called for total revenues of $1.265 billion to $1.270 billion and non-GAAP diluted earnings per share of $1.45 to $1.47, implying continued but moderating growth relative to the first quarter's 5.5% pace.
Segment developments during the to-be-reported quarter reinforced the AI-first positioning underlying that outlook. In May, Zoom's board authorized the additional $1 billion share repurchase alongside the first-quarter release, while Contact Center and Phone SDKs were extended with real-time audio-translation capabilities.
In June, Zoom launched ZoomMate, an agentic AI work surface combining agentic search, AI-generated deliverables and automated execution across Salesforce, Jira, Slack and ServiceNow, later expanding it with AI agents and introducing Zoom AI On-Prem for regulated enterprises, while AI Companion features were folded natively into Zoom Workplace.
In July, Zoom announced its planned acquisition of Common Room to add buyer-intelligence capabilities to its AI revenue platform, expanded Zoom Virtual Agent Receptionist across telephony environments and unveiled Zoom Revenue Accelerator enhancements to drive revenue action.
Taken together, Enterprise strength, AI monetization progress and expanded buybacks are expected to support results within the guided ranges, while Online softness, elevated churn and currency headwinds remained the primary offsetting factors heading into the print.
Stocks With the Favorable CombinationHere are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1. The Zacks Consensus Estimate for DELL’s second-quarter earnings is pegged at $4.88 per share, down by a penny over the past 30 days, indicating a rise of 110.3% from the year-ago quarter’s reported figure.
Hewlett Packard (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.
Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2. The Zacks Consensus Estimate for HPE’s third-quarter earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 113.6% from the year-ago quarter’s reported figure.
Intuit (INTU - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3 at present.
Intuit is set to report fourth-quarter fiscal 2026 results on Aug. 25. The Zacks Consensus Estimate for INTU’s fourth-quarter earnings is pegged at $3.59 per share, unchanged over the past 30 days, indicating a rise of 30.6% from the year-ago quarter’s reported figure.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Zoom Communications (ZM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
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>>>
While the ABR calls for buying Zoom, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
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 RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
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.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in ZM?In terms of earnings estimate revisions for Zoom, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.17.
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.
Wall Street analysts forecast that Zoom Communications (ZM - Free Report) will report quarterly earnings of $1.50 per share in its upcoming release, pointing to a year-over-year decline of 2%. It is anticipated that revenues will amount to $1.27 billion, exhibiting an increase of 4.2% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Given this perspective, it's time to examine the average forecasts of specific Zoom metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts predict that the 'Revenue- Online' will reach $492.94 million. The estimate indicates a change of +1.3% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Enterprise' of $774.78 million. The estimate suggests a change of +6% year over year.
According to the collective judgment of analysts, 'Enterprise Customers' should come in at 188,367 . Compared to the current estimate, the company reported 184,000 in the same quarter of the previous year.
The average prediction of analysts places 'Current Remaining performance obligation (RPO)' at $2.54 billion. Compared to the current estimate, the company reported $2.41 billion in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Customers >$100K TTM Revenue' should arrive at 4,572 . Compared to the current estimate, the company reported 4,274 in the same quarter of the previous year.
View all Key Company Metrics for Zoom here>>>
Shares of Zoom have demonstrated returns of +25.2% over the past month compared to the Zacks S&P 500 composite's +3.5% change. With a Zacks Rank #3 (Hold), ZM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
In the latest close session, Zoom Communications (ZM - Free Report) was up +2.64% at $107.47. This move outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.16%.
Shares of the video-conferencing company have appreciated by 16.64% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.8%, and the S&P 500's gain of 3.25%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. The company's earnings report is expected on August 25, 2026. The company's upcoming EPS is projected at $1.5, signifying a 1.96% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.27 billion, showing a 4.22% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.17 per share and a revenue of $5.09 billion, indicating changes of +4.22% and +4.54%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoom Communications is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Zoom Communications is holding a Forward P/E ratio of 16.96. This signifies a discount in comparison to the average Forward P/E of 21.39 for its industry.
It is also worth noting that ZM currently has a PEG ratio of 3.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 0.97.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zoom Communications is rated a buy, with a compelling 15.6 P/E and a 28.5% upside to $136.20 per share. ZM has evolved beyond video meetings, integrating AI and expanding enterprise offerings, driving deeper workplace collaboration. AI adoption and Zoom Workplace Enterprise are key growth catalysts, with enterprise customers now representing 61% of revenue.
Zoom Communications (ZM - Free Report) closed the most recent trading day at $105.97, moving -1.15% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.32% for the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 0.6%.
The video-conferencing company's shares have seen an increase of 16.67% over the last month, surpassing the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.46%.
The investment community will be closely monitoring the performance of Zoom Communications in its forthcoming earnings report. The company is scheduled to release its earnings on August 25, 2026. On that day, Zoom Communications is projected to report earnings of $1.5 per share, which would represent a year-over-year decline of 1.96%. Simultaneously, our latest consensus estimate expects the revenue to be $1.27 billion, showing a 4.22% escalation compared to the year-ago quarter.
ZM's full-year Zacks Consensus Estimates are calling for earnings of $6.17 per share and revenue of $5.09 billion. These results would represent year-over-year changes of +4.22% and +4.54%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Zoom Communications. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.01% higher. Currently, Zoom Communications is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Zoom Communications has a Forward P/E ratio of 17.39 right now. This denotes a discount relative to the industry average Forward P/E of 21.5.
It's also important to note that ZM currently trades at a PEG ratio of 3.92. 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. The Internet - Software industry currently had an average PEG ratio of 1.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 101, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zoom Communications, Inc. (NASDAQ:ZM – Get Free Report) CEO Eric Yuan sold 12,100 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $100.17, for a total transaction of $1,212,057.00. Following the sale, the chief executive officer directly owned 22,998 shares of the company’s stock, valued at $2,303,709.66. This represents a 34.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Zoom Communications Price Performance ZM stock opened at $104.50 on Monday. The company has a market cap of $30.64 billion, a price-to-earnings ratio of 15.35, a PEG ratio of 5.60 and a beta of 1.00. The business has a fifty day simple moving average of $92.59 and a 200-day simple moving average of $89.93. Zoom Communications, Inc. has a 52 week low of $69.15 and a 52 week high of $114.74.
Zoom Communications (NASDAQ:ZM – Get Free Report) last issued its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter last year, the firm earned $1.43 earnings per share. The firm’s revenue for the quarter was up 5.5% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. As a group, analysts expect that Zoom Communications, Inc. will post 4.21 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades A number of analysts have recently issued reports on ZM shares. Wells Fargo & Company boosted their target price on Zoom Communications from $90.00 to $105.00 and gave the stock an “equal weight” rating in a report on Friday, May 22nd. Needham & Company LLC reaffirmed a “buy” rating and set a $130.00 price target on shares of Zoom Communications in a research report on Thursday, July 2nd. Citigroup boosted their price objective on shares of Zoom Communications from $122.00 to $126.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. HSBC increased their price objective on shares of Zoom Communications from $107.00 to $133.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $130.00 target price on shares of Zoom Communications in a report on Tuesday, June 30th. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $109.33.
Get Our Latest Report on ZM
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently made changes to their positions in ZM. Advocate Investing Services LLC purchased a new position in Zoom Communications in the 4th quarter valued at about $26,000. Strive Financial Group LLC purchased a new stake in shares of Zoom Communications during the fourth quarter worth about $27,000. Thurston Springer Miller Herd & Titak Inc. increased its position in shares of Zoom Communications by 133.3% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock worth $30,000 after acquiring an additional 200 shares during the last quarter. Rexford Capital Inc. lifted its stake in shares of Zoom Communications by 45.7% in the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after acquiring an additional 122 shares in the last quarter. Finally, Sound Income Strategies LLC lifted its stake in shares of Zoom Communications by 94.8% in the fourth quarter. Sound Income Strategies LLC now owns 411 shares of the company’s stock worth $33,000 after acquiring an additional 200 shares in the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors.
Zoom Communications Company Profile (Get Free Report)
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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Santiago Subotovsky, Director at Zoom Communications, Inc. (ZM +3.16%), reported a sale of 7,911 shares of Class A Common Stock on August 4, 2026. SEC Form 4 filing.
Transaction summaryMetricValueShares sold7,911Transaction value$801,622Post-transaction shares (directly held)127,060Post-transaction value$13.0 millionTransaction value based on SEC Form 4 weighted average sale price ($101.33); post-transaction value based on August 04, 2026 market close ($102.12).
Key questionsWhat was the regulatory context of this transaction?
The sale was executed pursuant to a Rule 10b5-1 trading plan adopted by Santiago Subotovsky on January 13, 2026. Such plans allow insiders to schedule stock trades in advance to avoid concerns regarding material non-public information.How has the stock performed leading up to this sale?
As of the transaction date on August 4, 2026, the company's stock had achieved a one-year total return of 42%. The execution price of $101.33 per share occurred as the stock was priced at $100.64 as of the August 5, 2026 market close.What is the insider's remaining exposure to the company?
Following this transaction, Santiago Subotovsky retains direct ownership of 127,060 shares of Class A Common Stock. This remaining position is valued at approximately $12.8 million based on the market close price of $100.64 as of August 5, 2026.What does the company's financial profile look like?
Zoom Communications maintains a market capitalization of $29.5 billion as of the August 5, 2026 market close. The company reported trailing twelve-month revenue of $4.9 billion and net income of $2.1 billion.Company OverviewMetricValueShare Price (as of market close 2026-08-05)$100.64Market Capitalization$29.5 billionRevenue (TTM)$4.9 billionNet Income (TTM)$2.1 billionCompany SnapshotZoom Communications provides a comprehensive unified communications platform that enables video conferencing, messaging, and collaboration services, generating revenue primarily through subscription-based licensing models and enterprise solutions.The company operates on a SaaS-based business model, monetizing its platform through tiered subscription plans for individual users, small businesses, and large enterprises, supplemented by premium features and integrated services.Zoom serves a diverse customer base spanning individual users, small and medium-sized businesses, and large enterprises across education, healthcare, finance, and corporate sectors globally.Zoom Communications operates as a leading provider of unified communications and collaboration solutions with a global footprint spanning the Americas, Asia Pacific, and Europe, the Middle East, and Africa (EMEA). The company has demonstrated substantial scale with $4.9 billion in TTM revenue and $2.1 billion in TTM net income, reflecting strong operational efficiency and market demand for remote communication infrastructure. Founded in 2011 and headquartered in San Jose, California, Zoom maintains a competitive advantage through its intuitive platform design, reliable service delivery, and extensive integration ecosystem that addresses evolving workplace communication requirements.
What this transaction means for investorsAs previously stated, Subotovsky’s sale occurred under a Rule10b5-1 trading plan adopted in January. It involved only about 6% of this Zoom holdings, and since he planned the sale far in advance, it likely occurred for personal reasons.
To that end, investors should probably focus on the approximate 94% of the Zoom stock he chose to keep. As many investors remember, the stock went into the stratosphere during the pandemic as businesses and individuals scrambled for online meeting solutions.
Once the pandemic subsided, so did interest in the SaaS stock, and Zoom has traded in a range since 2022. However, it has moved to the upper end of that range as the stock surged higher by 42% over the last year.
Today's Change
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Its AI tool ZoomMate has helped users convert meeting conversations into workflows. Given the numerous competing online meeting platforms that appeared in its wake, this is a welcome competitive advantage.
Additionally, its venture arm made an early investment in Anthropic, leading to a considerable gain. Considering its P/E ratio of 15, Subotovsky is likely best off staying invested in Zoom stock.
In the latest close session, Zoom Communications (ZM - Free Report) was down 1.45% at $100.64. This change lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw a decrease of 0.83%.
Heading into today, shares of the video-conferencing company had gained 19.19% over the past month, outpacing the Computer and Technology sector's gain of 3.01% and the S&P 500's gain of 3.52%.
The upcoming earnings release of Zoom Communications will be of great interest to investors. The company's earnings report is expected on August 25, 2026. The company is predicted to post an EPS of $1.5, indicating a 1.96% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.27 billion, up 4.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6.17 per share and a revenue of $5.09 billion, demonstrating changes of +4.22% and +5.91%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Zoom Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.01% higher. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold).
Investors should also note Zoom Communications's current valuation metrics, including its Forward P/E ratio of 16.56. This represents a discount compared to its industry average Forward P/E of 21.72.
Also, we should mention that ZM has a PEG ratio of 3.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 1.2 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 108, this industry ranks in the top 44% 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.
To follow ZM in the coming trading sessions, be sure to utilize Zacks.com.
Investors interested in Internet - Software stocks are likely familiar with Nice (NICE - Free Report) and Zoom Communications (ZM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Nice has a Zacks Rank of #2 (Buy), while Zoom Communications has a Zacks Rank of #3 (Hold). This means that NICE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
NICE currently has a forward P/E ratio of 9.07, while ZM has a forward P/E of 15.94. We also note that NICE has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZM currently has a PEG ratio of 3.59.
Another notable valuation metric for NICE is its P/B ratio of 1.6. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ZM has a P/B of 2.89.
Based on these metrics and many more, NICE holds a Value grade of A, while ZM has a Value grade of C.
NICE sticks out from ZM in both our Zacks Rank and Style Scores models, so value investors will likely feel that NICE is the better option right now.
Zoom Communications (ZM - Free Report) closed the most recent trading day at $92.41, moving +1.02% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.52%. Meanwhile, the Dow lost 2.19%, and the Nasdaq, a tech-heavy index, lost 1.74%.
Shares of the video-conferencing company have appreciated by 5.99% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.5%, and the S&P 500's gain of 1.92%.
Investors will be eagerly watching for the performance of Zoom Communications in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.5, indicating a 1.96% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.27 billion, up 4.22% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.17 per share and a revenue of $5.09 billion, representing changes of +4.22% and +4.54%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoom Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 shifted 2.98% upward. As of now, Zoom Communications holds a Zacks Rank of #3 (Hold).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 14.84. This represents a discount compared to its industry average Forward P/E of 20.42.
It's also important to note that ZM currently trades at a PEG ratio of 3.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.14 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 41% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
July 28, 2026 16:05 ET | Source: Zoom Communications, Inc.
SAN JOSE, Calif., July 28, 2026 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced it will release its financial results for the second quarter of fiscal year 2027 on Tuesday, August 25, 2026, after the market closes.
A live Zoom Webinar of the event can be accessed at 2:00 pm PT / 5:00 pm ET through Zoom’s investor relations website at https://investors.zoom.com. A replay will be available approximately two hours after the conclusion of the live event.
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.
Public Relations
Karen Modlin
Head of Corporate Communications, Zoom [email protected]
Investor Relations
Charles Eveslage
Head of Investor Relations, Zoom [email protected]
From a technical perspective, Zoom Communications (ZM - Free Report) is looking like an interesting pick, as it just reached a key level of support. ZM recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
ZM has rallied 5.9% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests ZM could be on the verge of another move higher.
Once investors consider ZM's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, and the consensus estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ZM for more gains in the near future.
Zoom Communications (ZM - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ZM crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
ZM has rallied 5.9% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests ZM could be on the verge of another move higher.
The bullish case solidifies once investors consider ZM's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ZM for more gains in the near future.
Fifth Third Bancorp grew its holdings in shares of Zoom Communications, Inc. (NASDAQ: ZM) by 762.3% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 12,727 shares of the company's stock after buying an additional 11,251 shares during
Arrowstreet Capital Limited Partnership cut its stake in shares of Zoom Communications, Inc. (NASDAQ:ZM – Free Report) by 6.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,600,093 shares of the company’s stock after selling 167,588 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.88% of Zoom Communications worth $209,021,000 as of its most recent SEC filing.
Other hedge funds have also recently bought and sold shares of the company. NewEdge Advisors LLC increased its holdings in shares of Zoom Communications by 16.8% during the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company’s stock valued at $591,000 after purchasing an additional 1,153 shares during the period. Intech Investment Management LLC lifted its holdings in Zoom Communications by 59.1% in the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company’s stock worth $1,238,000 after purchasing an additional 6,235 shares during the period. Geneos Wealth Management Inc. grew its position in Zoom Communications by 82.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after buying an additional 397 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in Zoom Communications during the 2nd quarter valued at about $217,000. Finally, Invesco Ltd. raised its position in shares of Zoom Communications by 7.0% during the 2nd quarter. Invesco Ltd. now owns 730,207 shares of the company’s stock worth $56,942,000 after buying an additional 47,749 shares in the last quarter. 66.54% of the stock is currently owned by institutional investors.
Analyst Ratings Changes ZM has been the subject of a number of research analyst reports. Piper Sandler upped their price target on shares of Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a research note on Friday, May 22nd. Robert W. Baird raised their price objective on shares of Zoom Communications from $95.00 to $105.00 and gave the company an “outperform” rating in a research report on Tuesday, May 19th. Citizens Jmp reaffirmed a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Benchmark boosted their target price on shares of Zoom Communications from $115.00 to $121.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $130.00 price target on shares of Zoom Communications in a report on Thursday. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Zoom Communications has an average rating of “Moderate Buy” and a consensus price target of $109.33.
View Our Latest Stock Report on Zoom Communications
Insider Activity at Zoom Communications In other Zoom Communications news, Director Santiago Subotovsky sold 5,274 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $109.78, for a total value of $578,979.72. Following the transaction, the director directly owned 137,608 shares of the company’s stock, valued at approximately $15,106,606.24. This trade represents a 3.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 12,100 shares of the firm’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $106.60, for a total value of $1,289,860.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 48,517 shares of company stock worth $5,061,783 over the last ninety days. Company insiders own 8.83% of the company’s stock.
Zoom Communications Stock Up 4.6% ZM stock opened at $87.99 on Friday. The company has a market cap of $25.80 billion, a PE ratio of 12.92, a price-to-earnings-growth ratio of 4.51 and a beta of 1.01. The business’s 50-day simple moving average is $93.30 and its 200 day simple moving average is $88.99. Zoom Communications, Inc. has a twelve month low of $69.15 and a twelve month high of $114.74.
Zoom Communications (NASDAQ:ZM – Get Free Report) last announced its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the prior year, the business posted $1.43 earnings per share. The business’s revenue was up 5.5% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. On average, equities research analysts anticipate that Zoom Communications, Inc. will post 4.21 EPS for the current year.
Zoom Communications Profile (Free Report)
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 Communications (ZM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this video-conferencing company have returned +0.4%, compared to the Zacks S&P 500 composite's +0.4% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has gained 7.3%. 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.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-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 -2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
The consensus earnings estimate of $6.17 for the current fiscal year indicates a year-over-year change of +4.2%. This estimate has changed +2.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.27 indicates a change of +1.7% from what Zoom is expected to report a year ago. Over the past month, the estimate has changed +0.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Zoom is rated Zacks Rank #3 (Hold).
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 $1.27 billion for the current quarter points to a year-over-year change of +4.2%. The $5.09 billion and $5.28 billion estimates for the current and next fiscal years indicate changes of +4.5% and +3.7%, respectively.
Last Reported Results and Surprise HistoryZoom reported revenues of $1.24 billion in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $1.55 for the same period compares with $1.43 a year ago.
Compared to the Zacks Consensus Estimate of $1.22 billion, the reported revenues represent a surprise of +1.26%. The EPS surprise was +9.93%.
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.
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.
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.
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.
Eric S. Yuan, Chief Executive Officer of Zoom Communications, Inc. (ZM -4.52%), reported a sale of Class A Common Stock on July 13, 2026 and July 14, 2026. SEC Form 4 filing
Transaction summaryMetricValueShares traded (indirectly held)57,824Transaction value$5.3 millionPost-transaction shares (indirectly held)22,998Post-transaction value$2.1 millionTransaction value based on SEC Form 4 weighted average sale price ($91.47); post-transaction value based on July 14, 2026 market close ($91.15).
Key questionsWhat were the specific mechanics of this transaction?
The transaction involved the exercise of 57,824 options that were immediately sold as shares. These sales were executed in multiple tranches at weighted-average prices ranging from $88.93 to $93.10. The activity was conducted via the 2018 Yuan and Zhang Revocable Trust, for which Eric S. Yuan and his spouse serve as cotrustees.How does this sale impact the insider's total economic interest?
While the sale reduced the CEO's Class A common stock position by 72%, it represents a small fraction of his total beneficial ownership. Beyond the remaining 22,998 shares of Class A stock, the insider retains a significant interest through 41.4 million indirect derivative securities, which include Class B Common Stock convertible into Class A Common Stock.What is the recent performance context for the company?
The transaction occurred after a period of positive momentum, with the stock delivering a 22% one-year total return as of the July 14, 2026 transaction date. With a market capitalization of $26.7 billion and trailing twelve-month net income of $2.1 billion, the company maintained a robust financial profile at the time of the sale.Does this transaction signal a change in management's outlook?
The use of a Rule 10b5-1 trading plan, adopted more than a year prior on June 20, 2025, suggests this was a routine portfolio management decision rather than a response to recent market developments or near-term internal projections. Such plans are designed to allow insiders to diversify their holdings at predetermined intervals to avoid concerns regarding material non-public information.Company OverviewMetricValueShare Price (as of market close 2026-07-14)$91.15Market Capitalization$26.7 billionRevenue (TTM)$4.9 billionNet Income (TTM)$2.1 billionCompany SnapshotZoom Communications provides a comprehensive unified communications platform that enables video conferencing, messaging, and collaboration services, generating revenue primarily through subscription-based licensing models and cloud services.The company operates on a software-as-a-service (SaaS) business model, monetizing its platform through tiered subscription plans for individual users, small businesses, and enterprise customers seeking integrated communication solutions.Zoom serves a diverse customer base spanning individual professionals, small and medium-sized enterprises, and large multinational corporations across all major geographic regions including the Americas, Asia Pacific, and Europe, the Middle East, and Africa.Zoom Communications represents a leading global provider of unified communications and collaboration solutions with a market capitalization of $26.7 billion and TTM revenues of $4.9 billion. The company maintains a significant competitive advantage through its user-friendly platform architecture, extensive integration ecosystem, and strong brand recognition established since its 2011 founding. With 7,438 employees and operations across three primary geographic regions, Zoom has demonstrated substantial profitability, generating $2.1 billion in net income on a TTM basis, reflecting the scalability and operational efficiency of its cloud-based business model.
What this transaction means for investorsOn the surface, Yuan’s sale of Zoom shares looks like a routine exercise of shares. As a sale performed under the Rule 10b5-1 plan, this was a pre-planned transaction rather than a sale driven by concerns about the stock.
As previously mentioned, Yuan still owns 41.4 million indirect derivative securities, so the 67% reduction in his common stock holdings is probably not as meaningful as it might appear.
Moreover, investors should remember that Yuan is the founder and CEO. Hence, any explicit sign of him turning bearish on the SaaS stock could lead to a massive share sale.
Today's Change
(
-4.52
%) $
-4.06
Current Price
$
85.71
Nonetheless, the stock price has traded in a range since its massive pullback after the post-pandemic surge in 2020. This means it has dramatically underperformed the S&P 500, and knowing that, one might wonder whether Yuan is truly bullish on Zoom stock.
Since Yuan is unlikely to speak out against his company’s stock, the best thing that investors can do is watch his behavior. If investors keep seeing more filings, it might be a sign to not buy shares of Zoom stock.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zoom Communications. The Motley Fool has a disclosure policy.
SAN JOSE, Calif., July 22, 2026 (GLOBE NEWSWIRE) -- Sales organizations are managing an overwhelming amount of data that too often lives across multiple disconnected systems. When customer interactions, business knowledge, and CRM data are siloed, sellers lose critical context due to systems sprawl, putting them at a disadvantage when advancing sales opportunities.
Today, Zoom Communications, Inc. (NASDAQ: ZM) announced updates to Zoom Revenue Accelerator (ZRA), including the general availability of Sales Assist (real-time deal guidance), Ask ZRA (natural language AI inquiries on conversation data), and Sales Roleplay (AI-powered practice simulations), through new Zoom Revenue Accelerator Essentials and Premium offerings. Together, these innovations deliver AI-powered guidance before, during, and after every customer engagement, so that revenue teams can supercharge how they process the information and turn it into real action.
These ZRA updates are coming as the need for connected revenue intelligence demand has increased. According to a report from
IDC, 34% of sales executives rank improving interoperability between disparate systems as the top driver of their sales initiatives, while 28% say reducing the number of systems and vendors they manage is their highest priority.
The findings reflect a shift toward unified platforms that help revenue teams spend less time managing technology and more time driving customer outcomes.
What's New
Zoom Revenue Accelerator is expanding with the general availability of Sales Assist, Ask ZRA, and Sales Roleplay, all new AI capabilities that build on its existing conversation intelligence, coaching, and forecasting capabilities.
These will be available through new Zoom Revenue Accelerator Essentials and Premium offerings, giving organizations greater flexibility in adopting and scaling advanced AI across their revenue teams.
From revenue intelligence to revenue action
Zoom Revenue Accelerator helps organizations capture customer conversations, uncover deal insights, strengthen coaching, and improve forecasting. This launch builds on that foundation by helping revenue teams put those insights to work.
With Sales Assist, Ask ZRA, and Sales Roleplay, Zoom Revenue Accelerator extends beyond surfacing intelligence to delivering guidance where work happens. This helps sellers prepare for conversations, managers coach more effectively, and organizations continuously improve performance across the revenue lifecycle.
The result is a more connected revenue organization where every customer interaction contributes to stronger relationships, healthier pipelines, and more predictable growth.
"Every customer conversation is more than a record of what happened; it's an opportunity to shape what happens next," said Madison Muchow, general manager of Zoom Revenue Accelerator at Zoom. "We believe AI should do more than summarize interactions; it should help revenue teams prepare smarter by coaching continuously, and execute with confidence to drive more pipeline. That's the future we're building at Zoom."
AI that works across the sales workflow
From preparation to follow-up, every stage of the sales process offers opportunities to improve execution. Zoom Revenue Accelerator brings together AI, coaching, and revenue intelligence to help teams make the most of every customer interaction.
Before the meeting, Sales Roleplay helps organizations strengthen seller performance through AI-powered practice sessions based on realistic customer scenarios, giving sellers personalized guidance that reinforces best practices before the next customer interaction.
During live customer conversations, Sales Assist surfaces competitive intelligence, objection guidance, discovery prompts, battlecards, and configurable framework capture in real time, helping sellers stay focused on customers while AI works in the background.
After a customer conversation, Ask ZRA enables sellers and managers to ask natural-language questions across customer conversations and revenue data to uncover account history, identify deal risks, understand coaching opportunities, and access the information they need to make the next engagement even better.
And because customer intelligence shouldn't be confined to a single application, MCP Server, including Zoom’s plug-in with OpenAI Codex, securely extends Zoom Revenue Accelerator to compatible AI platforms and enterprise workflows, enabling organizations to bring trusted revenue intelligence wherever work happens.
These new capabilities will be available as part of the new Zoom Revenue Accelerator Essentials and Premium offerings.
Giving customers more flexibility to adopt AI
Organizations are at different stages of their AI journey. To give customers more flexibility in adopting advanced AI capabilities, Zoom is introducing two new offerings:
Zoom Revenue Accelerator Essentials coming in August, is designed for organizations looking to strengthen conversation intelligence and sales coaching as they begin their AI journey. It includes foundational Zoom Revenue Accelerator capabilities, along with access to the new Ask ZRA, Sales Assist, and Sales Roleplay features, through a consumption model that lets teams explore advanced AI without overcommitting.
Zoom Revenue Accelerator Premium is designed for organizations ready to scale AI across their revenue teams. It includes everything in the Essentials offering, plus unlimited Sales Assist usage, recurring monthly AI credits for Ask ZRA and Sales Roleplay, and enhanced administrative controls that help organizations manage AI adoption across teams.
Both offerings reflect Zoom's new consumption-based approach for advanced AI capabilities, allowing organizations to align costs with adoption while maintaining governance and predictable usage. Find out more about these new offerings at Zoom.com.
Zoom Revenue Accelerator Essentials, coming in August, starts at $66 per user per month, billed annually, and Zoom Revenue Accelerator Premium starts at $99.99 per user per month, billed annually.
Additional information about packaging and availability is available at Zoom.com.
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.
Zoom Communications (ZM - Free Report) ended the recent trading session at $89.77, demonstrating a -1.25% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow experienced a rise of 0.74%, and the technology-dominated Nasdaq saw an increase of 1.29%.
The video-conferencing company's shares have seen an increase of 7.79% over the last month, surpassing the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
The investment community will be paying close attention to the earnings performance of Zoom Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.5, marking a 1.96% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.27 billion, indicating a 4.22% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.17 per share and revenue of $5.09 billion, indicating changes of +4.22% and +4.54%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.98% higher within the past month. At present, Zoom Communications boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Zoom Communications is presently trading at a Forward P/E ratio of 14.75. This denotes a discount relative to the industry average Forward P/E of 19.97.
Meanwhile, ZM's PEG ratio is currently 3.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.1 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
SINGAPORE, July 21, 2026 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced the appointment of Carlos Quaderi as Head of Asia Pacific (APAC), effective 1 August 2026, underscoring the company’s continued investment in APAC as a strategic growth region.
His appointment comes as organisations across APAC look beyond standalone productivity tools to AI-powered systems that reduce complexity, connect workflows and help teams move more quickly from conversations to completion.
Reporting directly to Graeme Geddes, Zoom’s Chief Sales and Growth Officer, Quaderi will lead Zoom's go-to-market strategy across APAC: Australia and New Zealand (ANZ), Asia, India and Korea, excluding Japan.
Quaderi previously served as Zoom's Head of Asia where he drove regional strategy, sales execution and go-to-market initiatives for Southeast Asia, Hong Kong SAR and Taiwan, he will now oversee the broader APAC region, working closely with regional teams and global leadership to advance the company’s strategic priorities, with a focus on the customer experience (CX) business, small and medium-sized business (SMB) segment, and channel expansion.
A seasoned industry veteran with more than 30 years of experience, he previously held senior leadership roles at Workday, Amazon Web Services and Microsoft, where he led go-to-market strategy and enterprise growth across Asia Pacific and Japan. Quaderi will remain based in Singapore, and will continue overseeing Zoom's Asia business through the transition.
“APAC is a critical growth region, and our continued investment reflects the opportunities we see across enterprise & SMB segments, CX business, and our partner ecosystem,” said Geddes. “Carlos has been instrumental in building our momentum, and expanding his leadership is a natural next step. His deep understanding of the region, customer focus and track record will help more organisations embrace Zoom's AI capabilities in ways that improve productivity, strengthen customer relationships and accelerate business growth.”
“Across APAC, teams are moving faster than ever, and they need technology that keeps pace without losing the human element and momentum,” said Quaderi. “I’m excited to work alongside our customers and partners in the region to help them unlock new possibilities with Zoom's AI-powered system of action and open ecosystem, connecting conversations, people and workflows so they can move faster from ideas to impact and achieve meaningful business outcomes.”
Zoom continues to invest across the APAC region, expanding its partner ecosystem and opening a new Singapore office. By integrating with existing business applications, the company’s open platform ecosystem helps organizations improve collaboration, deepen human connections, and elevate customer experiences with signature simplicity and reliability.
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
Image Credits:Ysr Dora (opens in a new window) / Getty Images VC Jeremy Levine has a wry solution to something that routinely annoys him, according to a new Wall Street Journal article on the rise of AI transcription apps. On Zoom, he is no longer “Jeremy Levine” but instead “Jeremy Levine I do not consent to transcribing or recording.”
It may sound petty or brilliant, depending on your point of view, but what’s clear is that always-on recording is becoming ubiquitous, thanks to a growing crop of AI note-taking apps and devices, many of which we’ve covered here at TechCrunch (we’ve even ranked some).
VC Eric Bahn tells the outlet he now automatically assumes his meetings with founders will be recorded, even before he sees a phone slide across a conference table. One founder tells the WSJ she records most of her first dates with the Granola app, then feeds the transcript to Claude afterward to see if she could be more “engaging or empathetic,” while also assessing who did most of the talking. (Dating in San Francisco is rough.)
Levine calls the whole trend “socially unacceptable behavior” that can completely kill spontaneous conversations. Others in the piece note it’s a legal minefield.
But there’s another wrinkle: if every meeting, watercooler conversation, and romantic outing gets transcribed and summarized, who’s actually reading any of it? At what point does this audio landfill of every conversation stop being useful and just become another recording no one has time to play back?
Zoom Communications (ZM - Free Report) closed at $92.60 in the latest trading session, marking a +1.59% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the video-conferencing company had lost 1% in the past month. In that same time, the Computer and Technology sector lost 0.53%, while the S&P 500 gained 1.61%.
Market participants will be closely following the financial results of Zoom Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.49, marking a 2.61% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.27 billion, reflecting a 4.22% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.06 per share and a revenue of $5.09 billion, representing changes of +2.36% and +4.54%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zoom Communications presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Zoom Communications is currently being traded at a Forward P/E ratio of 15.04. This expresses a discount compared to the average Forward P/E of 19.89 of its industry.
Investors should also note that ZM has a PEG ratio of 3.39 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ZM's industry had an average PEG ratio of 1.06 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
