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.
Eric S. Yuan, Chief Executive Officer, reported a disposition of 58,655 shares of Zoom Communications, Inc. (ZM 0.13%) for approximately $5.1 million, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold (indirectly held)58,655Transaction value$5.1 millionPost-transaction shares (indirectly held)56,622Post-transaction value$5.1 millionTransaction value based on SEC Form 4 weighted average sale price ($86.38); post-transaction value based on July 9, 2026 market close ($89.88).
Key questionsWhat was the motivation for this disposition?
The sale was non-discretionary and was executed specifically to cover tax withholding obligations associated with the vesting of restricted stock units (RSUs). This technical transaction does not represent a discretionary exit or a change in the CEO's fundamental outlook on the company.What is the extent of the insider's remaining equity exposure?
Eric Yuan maintains substantial economic interest in the company through 56,622 shares held indirectly in the 2018 Yuan and Zhang Revocable Trust and over 21.2 million derivative securities across direct and indirect holdings. This includes approximately 20.7 million indirect derivative securities held through the same family trust.How does the transaction timing align with recent stock performance?
The shares were withheld at a weighted average price of $86.38 during a period where the stock closed at $89.88 as of July 9, 2026. This occurred against a backdrop of a 16% share price appreciation over the preceding 12 months.What are the terms of the underlying equity awards?
The shares originated from several restricted stock unit grants dating back to July 2022, July 2023, and April 2026. These awards follow structured quarterly vesting schedules spanning three to four years, suggesting a regular cadence of similar tax-related dispositions may occur as future tranches vest.Company OverviewMetricValueShare Price (as of market close 2026-07-09)$89.88Market Capitalization$26.4 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 capabilities, generating revenue primarily through subscription-based licensing models and usage-based services across enterprise and consumer segments.The company operates a Software-as-a-Service (SaaS) business model, monetizing its platform through tiered subscription plans, premium features, and add-on services that serve organizations of varying sizes and complexity requirements.Zoom's customer base encompasses enterprises, small and medium-sized businesses, educational institutions, and individual users globally, with particular strength in the enterprise segment where organizations require scalable, secure communication infrastructure.Zoom Communications operates at significant scale with a market capitalization of $26.4 billion and TTM revenues of $4.9 billion, reflecting its position as a leading provider of unified communications solutions. The company maintains a global operational footprint organized across three primary regions — the Americas, Asia Pacific, and EMEA — enabling it to serve diverse markets with localized support and compliance capabilities.
Founded in 2011 by Eric Yuan and headquartered in San Jose, California, Zoom has established a competitive advantage through its intuitive user interface, reliable platform performance, and comprehensive feature set that addresses the evolving demands of hybrid and remote work environments.
What this transaction means for investorsGiven that the July 8 and July 9 sale of Zoom shares by CEO Eric Yuan were executed to fulfill tax withholding obligations from the vesting of RSUs, these dispositions are not a cause for investor concern. He also has 20.7 million Class B shares in his family trust that can be converted into common stock, illustrating the sizable equity stake he maintains in the company.
Zoom shares are up this year thanks in part to solid business performance, but more likely due to the company’s stake in Anthropic, a prominent artificial intelligence business that is expected to have a highly-anticipated IPO in 2026.
Zoom’s revenue hit $1.2 billion, a 5.5% year-over-year increase, in its fiscal first quarter ended April 30. Of that, $755.7 million came from enterprise customers, representing a jump up of 7.2% year over year. It’s encouraging to see the company achieve stronger sales growth among its business customers, which bodes well for Zoom’s future now that its impressive pandemic-related growth phase is long gone.
Robert Izquierdo has positions in Zoom Communications. The Motley Fool has positions in and recommends Zoom Communications. The Motley Fool has a disclosure policy.
SAN JOSE, Calif., July 09, 2026 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced a standalone offering for Zoom Virtual Agent (ZVA) Receptionist, enabling organizations to add an AI-powered front desk to their existing phone system without requiring Zoom Phone, helping organizations improve customer responsiveness, extend business availability, and capture more opportunities.
For many businesses, inbound calls are opportunities to win a customer, book an appointment, or strengthen an existing relationship. Yet according to research, 71% of consumers find calling a business more stressful than the issue they're trying to resolve, and 50% say they would switch to a competitor after a single bad experience.
With Zoom Virtual Agent Receptionist, organizations can provide fast, always-available customer assistance through natural, conversational AI that answers calls, assists customers, and routes inquiries around the clock. With support for more than 10 languages, built-in live transcription, appointment scheduling, and intelligent call routing, Zoom Virtual Agent Receptionist helps businesses deliver responsive customer experiences while enabling employees to focus on the conversations that matter most.
“Businesses shouldn’t have to replace their phone system to benefit from AI,” said Chris Moss, general manager of Zoom Phone. "Every inbound call is an opportunity to serve a customer or nurture a prospect. With the standalone Zoom Virtual Agent Receptionist offering, organizations can quickly add an AI-powered front desk to their existing systems, helping them answer more calls, respond faster, and stay available around the clock.”
Extending AI Receptionist capabilities beyond Zoom Phone
Originally introduced as part of Zoom Phone, Zoom Virtual Agent Receptionist is now available across existing business phone systems, making it easier for organizations to adopt AI without changing their communications infrastructure.
Answer and greet every caller with natural, conversational AI in multiple languages.Resolve common customer needs by answering business questions, scheduling appointments, and providing after-hours support.Connect customers to the right person with intelligent call routing and seamless handoff when human assistance is needed. Organizations can now add an AI-powered front desk without changing their existing phone system, making it easier to improve customer responsiveness while preserving existing technology investments and avoiding major migrations.
Whether supporting a retail store, healthcare practice, law office, or growing small business, Zoom Virtual Agent Receptionist helps ensure every caller receives timely, professional assistance while enabling employees to remain focused on serving customers.
Helping organizations capture every opportunity.
Since every inbound call has the potential to generate new business, appointments, or revenue, responsiveness is key to maintaining a competitive edge. During busy periods, after hours, or when employees are focused on helping customers in person, businesses often struggle to respond as quickly as customers expect.
By bringing AI receptionist capabilities to existing phone systems, Zoom is helping organizations improve responsiveness, extend business availability, and create better first impressions without disrupting the technology they already trust.
Available now
Standalone Zoom Virtual Agent Receptionist is available for purchase online beginning today, starting at $29.99 USD per month/100 minutes, or $24.99 USD per month/100 minutes with annual billing. To learn more, visit Zoom.com.
Organizations can also explore Zoom Virtual Agent Receptionist through a free trial program available to both new and existing customers.
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.
Move over, artificial intelligence (AI) -- initial public offering (IPO) mania is taking over Wall Street. Roughly four weeks ago, Elon Musk's Space Exploration Technologies (SpaceX) etched its name in the record books when it debuted, raising $85.7 billion (including the underwriters' overallotment) and nearly tripling Saudi Aramco's capital raise in December 2019.
Anthropic appears to be next. The developer of the Claude large language models is approaching a trillion-dollar valuation in private markets and confidentially filed for an IPO with regulators on June 1. When Anthropic does go public, three of its earliest investors, Alphabet (GOOGL 1.32%)(GOOG 1.25%), Amazon (AMZN 0.80%), and Zoom Communications (ZM +2.15%), will be sitting on windfall profits.
Image source: Getty Images.
Alphabet Though investors know Alphabet as the brainchild behind globally dominant internet search engine Google, popular streaming platform YouTube, and the world's No. 3 cloud infrastructure services platform Google Cloud, it's also a remarkable early stage investor. For example, the $900 million Google invested in SpaceX in January 2015 is worth approximately $104.6 billion, as of the closing bell on July 2.
Alphabet was also an early investor in Anthropic. It scooped up a 10% stake in the company for $300 million in April 2023 and invested an additional $2 billion in October 2023, with $500 million paid upfront. In April of this year, Alphabet announced a whopping $40 billion add-on investment, with $10 billion upfront and $30 billion dependent on performance milestones.
MOST PEOPLE HAVE NO IDEA HOW GOOD OF AN INVESTOR GOOGLE IS
6% OF SPACEX
14% OF ANTHROPIC
75% OF WAYMO
$900M INTO SPACEX IN 2015 →
NOW WORTH $115B
$13B INTO ANTHROPIC → NOW WORTH $140B
WAYMO JUST RAISED $16B AT A $126B VALUATION → GOOGLE'S STAKE WORTH ~$95B.
THOSE THREE... https://t.co/faLFBIeqq5
-- GURGAVIN (@gurgavin) June 13, 2026 All told, Alphabet holds a 14% stake in Anthropic that, at a $965 billion private-market valuation, is worth about $135.1 billion.
Amazon "Magnificent Seven" member Amazon is another juggernaut that Wall Street knows best as a dual-industry leader. Its e-commerce marketplace is globally dominant, and Amazon Web Services (AWS) is the largest cloud infrastructure services platform by total spend.
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But Amazon also has incredible investment chops. It initially invested $1.25 billion in Anthropic in September 2023, followed up with a $2.75 billion add-on investment in March 2024, and deployed another $4 billion in November 2024. In April 2026, it agreed to pour another $25 billion in Anthropic, in return for Anthropic spending more than $100 billion on AWS technologies over the next decade.
As of Amazon's first-quarter operating results, the company held $74.2 billion in combined Anthropic preferred stock and convertible notes, implying that its initial investment of $8 billion had grown more than ninefold.
Image source: Getty Images.
Zoom Communications Although it's not on the same level as Alphabet or Amazon, Zoom Communications should also expect a windfall profit once Anthropic goes public.
Most investors remember Zoom as arguably the biggest beneficiary of the COVID-19 pandemic. Employees working from home fostered demand for virtual conferences and communication, making Zoom's video conferencing platform an instant hit.
However, Zoom's biggest hit might be its early investment in Anthropic via Zoom Ventures. While Zoom never fully disclosed how much it invested in Anthropic, Zoom Ventures was named in Anthropic's Series C funding round in May 2023. Zoom also disclosed $51 million for strategic investments in its fiscal quarter ending July 31, 2023.
According to a May filing by Zoom, its initial investment in Anthropic has ballooned to almost $1.3 billion, leading to an estimated windfall profit of more than $1.2 billion.
Zoom Communications (ZM - Free Report) ended the recent trading session at $87.40, demonstrating a +2.01% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw an increase of 0.2%.
The video-conferencing company's stock has dropped by 11.52% in the past month, falling short of the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.27 billion, up 4.22% from the year-ago period.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Zoom Communications is currently a Zacks Rank #3 (Hold).
In the context of valuation, Zoom Communications is at present trading with a Forward P/E ratio of 14.14. For comparison, its industry has an average Forward P/E of 19.93, which means Zoom Communications is trading at a discount to the group.
We can also see that ZM currently has a PEG ratio of 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.1.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zoom Communications (ZM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this video-conferencing company have returned -11.5%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has gained 3.4%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Zoom is expected to post earnings of $1.49 per share, indicating a change of -2.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.06 points to a change of +2.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $6.22 indicates a change of +2.7% from what Zoom is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zoom.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Zoom, the consensus sales estimate for the current quarter of $1.27 billion indicates a year-over-year change of +4.2%. For the current and next fiscal years, $5.09 billion and $5.28 billion estimates indicate +4.5% and +3.7% changes, 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.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Zoom is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Zoom. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zoom Video Communications stands to benefit as AI integration increases workplace meeting frequency, not reduces it. AI automates routine tasks but still requires human oversight, driving demand for collaboration and supervision. Employers prioritize leadership, collaboration, and decision-making skills, reinforcing the need for meetings facilitated by ZM.
SummaryZoom Communications is upgraded to Strong Buy, driven by robust financials, expanding AI initiatives, and an undervalued Anthropic stake as its potential IPO approaches.Q1 FY27 saw 5.5% revenue growth, a 40.4% FCF margin, and $1.56B in buybacks over 12 months, with another $1 billion buyback authorization announced recently.ZM's balance sheet remains a fortress with $7.72B in net cash, supporting continued innovation, investments, and international expansion.Valuation implies a solid margin of safety, with DCF-derived fair value at $94.21/share, excluding potential Anthropic IPO upside. 10'000 Hours/DigitalVision via Getty Images
Introduction The first time I covered Zoom Communications (ZM), highlighting the company's exceptional financial position and significant expansion potential into a diversified work platform, as well as a small Anthropic (
3.19K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ZM over the next 72 hours. 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.
Zoom (ZM) earns a buy rating, offering strong fundamentals and cash generation despite competitive and AI-driven risks. ZM's balance sheet is robust, with $7.7B in cash and investments, plus a $1.3B Anthropic stake supporting its $25B market cap. Valuation appears attractive: ZM trades at 12.8x TTM GAAP PE, ~42% net income margin, and high free cash flow yields.
Zoom Communications is rated a 'buy' due to undervaluation, robust AI-driven growth, and a pristine balance sheet. ZM's enterprise revenue grew 7.2%, with large customers rising 8% and non-GAAP operating margin reaching 41.1%. AI Companion adoption surged 184% YoY, driving platform expansion and prompting management to raise full-year guidance.
Acquisition unifies enrichment, buying signals, and AI revenue agents with the platform where customer conversations happen July 02, 2026 08:30 ET | Source: Zoom Communications, Inc.
SAN JOSE, Calif., July 02, 2026 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced that it has entered into a definitive agreement to acquire Common Room, an AI-native Go-to-Market (GTM) intelligence platform that turns fragmented signals and siloed customer data into complete, person-level buyer intelligence and activates it with AI agents.
Revenue teams today are drowning in tools but starved for clarity. Buyer signals are scattered across CRM, product usage, marketing, and engagement systems. Enrichment comes from a patchwork of vendors with coverage gaps that revenue teams don't discover until they're mid-sequence and the AI tools meant to help are built on incomplete, stale data that produces generic, untrustworthy output. The result is wasted effort on the wrong accounts at the wrong moments, hours lost to manual research, and AI that teams quietly abandon. Common Room solves this by unifying fragmented signals and partial identities into complete, person-level buyer intelligence, then activating it with AI agents revenue teams can actually trust.
Common Room unifies first-party data across CRM, product, marketing, and engagement systems with real-world buying signals to give revenue teams a continuously refreshed view of every buyer. Its RoomieAI agents handle account and contact research, message personalization, and prospecting, surfacing directly inside the tools where revenue teams already work. Used by GTM teams at companies including Atlassian, Anthropic, Autodesk, Notion, Okta, and Snowflake, Common Room consolidates the enrichment, signals, and workflow tooling that revenue teams have historically stitched together from many vendors.
The acquisition is a natural extension of Zoom Revenue Accelerator, Zoom's revenue orchestration platform that captures and analyzes sales conversations to deliver real-time coaching, deal intelligence, and accurate forecasting. Common Room adds the buyer intelligence that amplifies Zoom Revenue Accelerator, informing reps which accounts are in-market, who the buyers are, and why to reach out, before the call ever happens. Together, they close the loop across the full revenue journey on one platform without stitching together many point solutions.
"With Common Room, we’re extending Zoom’s system of action upstream, combining the richest context of how organizations engage with a real-time understanding of every buyer," said Abhisht Arora, Chief Strategy Officer of Zoom. "Revenue teams will now have a single, unified platform that will help them reach the right person at the right moment with the right message at every stage of a deal, cutting busywork and driving better commercial outcomes."
"We built Common Room to give every seller a real understanding of the person and the organization on the other side of the deal," said Linda Lian, CEO of Common Room. "Joining Zoom connects our graph to the conversations sellers have every day where deals are actually won and to the AI that can act on it. With Zoom's scale, resources, and global reach, we'll be able to accelerate our roadmap while continuing to serve and innovate for our customers."
The transaction is expected to close in the coming weeks, subject to customary closing conditions. Financial terms were not disclosed.
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.
About Common Room
Common Room is the AI-native GTM Platform that turns complete and trusted buyer intelligence into action – and gives revenue teams the control to govern and scale that execution across their GTM workflows. Common Room unifies first-party customer data with real-world buyer signals into a continuously updated system of buyer intelligence, and uses AI agents to help revenue teams prioritize, understand what’s changing, and execute with precision. Learn more at commonroom.io.
Contacts
Zoom
Karen Modlin
Head of Corporate Communications [email protected]
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws. Such statements do not relate strictly to historical or current facts and often use words such as “will,” “can,” “expect,” and similar expressions, or discuss plans or intentions. There are important risks and uncertainties that could materially impact the expectations expressed or implied in the forward-looking statements, including among other things, the need to timely satisfy any closing conditions to the proposed acquisition, and to realize the anticipated benefits of any combined operations. More details about these and other risks to Zoom’s business are in Zoom’s most recent Form 10-Q, available on Zoom’s website. Forward-looking statements should not be unduly relied upon and speak only as of this date, and Zoom does not undertake any duty to update this information unless required by law.
Investors interested in Internet - Software stocks are likely familiar with Five9 (FIVN - Free Report) and Zoom Communications (ZM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Five9 and Zoom Communications are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that FIVN likely has seen a stronger improvement to its earnings outlook than ZM has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
FIVN currently has a forward P/E ratio of 6.54, while ZM has a forward P/E of 14.24. We also note that FIVN has a PEG ratio of 0.40. 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 3.21.
Another notable valuation metric for FIVN is its P/B ratio of 1.97. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ZM has a P/B of 2.54.
These are just a few of the metrics contributing to FIVN's Value grade of A and ZM's Value grade of C.
FIVN stands above ZM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FIVN is the superior value option right now.
On June 26, 2026, Zoom Communications Inc (ZM) shares rose 4.3% to a current price of $86.48. Despite today's positive performance, the stock has experienced a
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 -13.6%, compared to the Zacks S&P 500 composite's -1.3% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has lost 5.4%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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.
For the current quarter, Zoom is expected to post earnings of $1.49 per share, indicating a change of -2.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.06 points to a change of +2.4% from the prior year. Over the last 30 days, this estimate has changed +1.5%.
For the next fiscal year, the consensus earnings estimate of $6.22 indicates a change of +2.7% from what Zoom is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zoom.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Zoom, the consensus sales estimate for the current quarter of $1.27 billion indicates a year-over-year change of +4.2%. For the current and next fiscal years, $5.08 billion and $5.27 billion estimates indicate +4.4% and +3.7% changes, 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.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Zoom is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
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.
Zoom Communications (ZM 0.38%) dropped by more than 20% over the past month. The pandemic bubble popped for the video conferencing company in 2021, and it looks like the stock will never reclaim those levels. The current drop doesn't seem to be over. Here's why investors shouldn't buy Zoom on the dip.
Some valuation metrics are more important than others A 12.7 P/E ratio looks attractive on the surface. Zoom commanded a P/E ratio in the 20s for most of 2025, but growth rates have also shrunk over the years. Zoom's revenue has a five-year compound annual growth rate (CAGR) of 12.9%, but only a 3.5% CAGR over the past three years.
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Revenue growth rates have steadily dropped since the pandemic, when Zoom was necessary for day-to-day communication. Zoom isn't going to get the catalyst of global lockdowns again, so it's easy to interpret its pandemic success as a one-off event.
The stalling of Zoom's revenue growth highlights the importance of looking at the PEG ratio instead of the P/E ratio. While the P/E ratio measures a stock's price compared to its earnings, the PEG ratio also includes growth rates. Zoom currently has a 4.2 PEG ratio, while a fairly valued stock typically has a 1.0 PEG ratio. Anything higher than that is usually overvalued.
It doesn't get any better Zoom reported 5.5% year-over-year revenue growth in its fiscal 2027 first quarter, ended April 30. Its high-growth days are over, and guidance for upcoming results reflects this reality. Zoom anticipates $1.265 billion to $1.27 billion for its fiscal 2027 Q2 revenue. The high end of guidance only implies a 4% year-over-year increase.
Image source: Getty Images.
Zoom also anticipates $5.085 billion in full-year fiscal 2027 revenue at the midpoint of guidance, which would be a 4.4% year-over-year jump. These aren't eye-catching numbers, and while a P/E ratio of 12.7 suggests setting a low bar, the PEG ratio truly captures how overvalued the stock is.
The most important red flag with Zoom is that it has become a commodity. Nvidia commands a high valuation because no one can produce similar GPUs. However, Zoom has several competitors that offer very similar experiences. Google Meet and Microsoft Teams are two viable competitors that have more generous features for free accounts and lower prices for paid plans.
Zoom's entire business model revolves around video conferencing. There are other options in the industry, and with few ways to innovate in video conferencing, Zoom doesn't have many options to generate sizable growth rates moving forward.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Zoom Communications. The Motley Fool has a disclosure policy.
New Zoom Virtual Agent capabilities help organizations build AI agents faster, optimize performance over time, and deliver more personalized customer experiences through a connected Zoom CX platform. At a glance: New Zoom Virtual Agent capabilities
Agent Architect: Generate production-ready voice and digital AI agents from a simple prompt. Create intelligent agents that can reason through requests, collaborate with other agents, and orchestrate customer interactions across systems and channels.Agent Performance Suite: Test, validate, and optimize AI agents throughout their lifecycle. Simulate customer interactions before deployment and track resolution rates, containment, customer satisfaction (CSAT), and cost per resolution after launch.Quality Management for Zoom Virtual Agent: Evaluate AI and human interactions using a common quality framework. Identify improvement opportunities, track service quality, and help AI learn from successful human-assisted resolutions.Enhanced customer context layer: Customer interactions create context that follows customers across Zoom CX, helping Zoom Virtual Agent, Zoom Contact Center, and Zoom AI Expert Assist deliver more personalized experiences and reduce the need for customers to repeat themselves.Outcome-based pricing: An optional pricing model that aligns AI automation costs with customer outcomes through resolved or successfully routed interactions across voice and chat.Multi-location deployments: Build AI-powered customer experiences once and deploy them across multiple locations while maintaining local phone numbers, routing, greetings, and knowledge bases. SAN JOSE, Calif., June 22, 2026 (GLOBE NEWSWIRE) --
Zoom Communications, Inc. (NASDAQ: ZM) today announced new AI capabilities for
Zoom Virtual Agent (ZVA), its virtual agent that uses conversational AI to resolve customer issues end to end.
The new capabilities, including Agent Architect and Agent Performance Suite, along with enhancements to the customer context layer across Zoom CX, help organizations generate and deploy AI agents faster. They also enable teams to optimize performance over time and deliver more personalized customer experiences across channels.
The first wave of AI in CX has often focused on deployment to help increase efficiency and reduce costs. The challenge now is moving beyond launch to effectively measure AI agent performance, maintain quality, and deliver more personalized customer experiences at scale. Zoom CX connects the full lifecycle of AI automation — from agent creation and customer context to performance optimization — helping organizations deliver more effective customer experiences and better outcomes.
"AI has significantly accelerated the CX landscape, and organizations not focused on outcomes fall behind," said Chris Morrissey, general manager of Zoom CX. "It's no longer just about deploying it to drive efficiency, but about having the context to drive personalization at scale. But the challenge is eliminating the tradeoff between speed and sophistication, and Zoom CX bridges that gap so teams can personalize better, deliver faster, and drive stronger outcomes."
Turn simple prompts into production-ready AI agents
Today’s way of building AI agents forces teams to choose between speed (simple agents) and sophistication (requiring advanced technical resources). The new Agent Architect is designed to eliminate that tradeoff by making AI agent creation generative. Instead of manually designing workflows, teams can start with a simple prompt and have Agent Architect expand it into a production-ready voice or digital agent. The Agent Architect interprets intent, fills in missing context, and connects the right capabilities and data sources to generate sophisticated workflows with minimal manual effort.
AI Agent Architect can generate autonomous agents that guide customers through complex requests, determine the next best action, and orchestrate work across systems and tools. Rather than following rigid scripts, agents can gather missing information, adapt to customer needs, and take action to move issues toward resolution. Before deployment, teams can review and refine agent behavior to align with business requirements, customer expectations, and compliance standards.
By transforming prompts into production-ready customer journeys, AI Agent Architect helps organizations accelerate deployment, expand self-service, and deliver faster resolutions across the customer journey.
Improved AI performance for better results
Zoom also announced the Agent Performance Suite, a new offering for Zoom Virtual Agent designed to give customer experience leaders a clearer understanding of what's working, where automation is falling short, and how to improve customer outcomes over time.
As organizations expand AI across customer service operations, visibility becomes increasingly important. Teams need a way to evaluate performance, identify automation gaps, and confidently scale AI while maintaining service quality. The Agent Performance Suite combines Agent Performance, Quality Management for Zoom Virtual Agent, and KB Suggestions, helping organizations test, measure, and continuously optimize AI-powered customer service.
Agent Performance: Test, validate, and optimize AI agents
Test and optimize AI agents throughout their lifecycle by simulating realistic customer scenarios before deployment and comparing simulation results with production outcomes. This helps teams identify improvement opportunities, validate performance, and expand successful use cases.Utilize real-time dashboards for visibility into live AI agent operational metrics, including resolution rates and containment. Quality Management: Extend consistent evaluation standards
Evaluate AI, human, and hybrid interactions using the same quality standards to understand what's working, where customers are struggling, and where improvements are needed. By applying the same standards across AI, human, and hybrid interactions, organizations can deliver more consistent customer experiences regardless of how issues are resolved. KB Suggestions: Fix knowledge gaps across agents
Teams can also use KB Suggestions when connected with Zoom Contact Center to help expand and improve self-service content. Zoom Virtual Agent can identify successful human-assisted resolutions and draft new knowledge base articles that teams can review and publish. Over time, this helps improve resolution consistency, reduce repeat contacts, and continuously strengthen AI-powered customer service. The Agent Performance Suite helps organizations create a continuous improvement cycle in which every interaction — whether AI, human-driven, or hybrid — can be measured, evaluated, and used to improve customer outcomes.
Separately, Zoom Virtual Agent also now offers an outcome-based pricing option that gives customers another way to simplify billing and connect AI investment to business value. With this option, pricing is tied to resolved or successfully routed interactions across voice and chat.
Scale AI-powered services across every location
Organizations with multiple locations often face a difficult tradeoff: maintain consistent customer experiences across all sites or customize experiences to local needs. Zoom Virtual Agent’s multi-location deployments eliminate that tradeoff by enabling organizations to build AI-powered customer experiences once and deploy them across an entire network.
With centralized management, teams can maintain consistent service quality, governance, and automation workflows across locations while allowing each site to customize phone numbers, greetings, department routing, and knowledge bases for local customer needs. Native Zoom Phone or Zoom Contact Center integration, along with centralized administration, helps simplify deployment while providing visibility across locations.
For example, a retailer can deploy a single AI agent across hundreds of stores while allowing each location to tailor responses based on store-specific inventory, promotions, and policies. Customers can upload a photo to identify a product, verify availability, troubleshoot a purchase, or receive personalized recommendations, while corporate teams maintain centralized management and visibility across the network.
Whether supporting retail stores, healthcare facilities, campuses, franchise networks, or other distributed operations, Zoom Virtual Agent multi-location deployments help organizations scale AI-powered service efficiently without building and maintaining separate agents for every location.
Make every customer interaction smarter
These new capabilities help organizations build, measure, and optimize AI-powered customer service. To make these experiences even smarter, Zoom CX is deepening the customer memory that powers every interaction.
Zoom CX maintains context within and across conversations, so customers don't have to repeat themselves as they move between virtual agents and live agents. Now, that memory goes even further — dynamically capturing context from prior engagements and layering it with AI reasoning to build a richer, more intelligent understanding of each customer over time. This isn't static data retrieval; it's a living context layer that informs AI recommendations, agent guidance, and routing decisions across Zoom Virtual Agent, Zoom Contact Center, and Zoom AI Expert Assist.
Because Zoom CX brings together virtual agents, live agents, and AI-powered assistance on a connected platform, this accumulated intelligence flows naturally across the customer journey, so every future interaction starts informed by not just what's happening now, but also what came before.
Connect AI automation to better customer outcomes
With these innovations, Zoom CX helps businesses create, manage, and optimize AI-powered customer service at scale. By bringing together customer context, agent creation, performance optimization, and quality management, organizations can deliver more effective customer experiences and better outcomes over time.
The next phase of AI in customer service will not be defined by how many agents organizations deploy, but by how effectively they use AI to resolve customer needs. Zoom CX helps organizations connect customer interactions, context, and action to deliver better service, faster resolutions, and measurable business impact.
The new capabilities for Zoom Virtual Agent are now available. Customers interested in learning more can contact their Zoom account representative or visit zoom.com. To hear more about these announcements, visit Zoom at booth #339 during CCW Las Vegas from June 22–25, 2026.
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 shares are climbing with conviction. What’s behind ZM gains? Q1 HighlightsZoom reported adjusted earnings per share of $1.55, beating the consensus estimate of $1.42. In addition, it posted revenue of $1.23 billion, beating the consensus estimate of $1.22 billion and representing a 5.5% year-over-year increase.
Enterprise revenue increased 7.2% year-over-year to $755.7 million, while Online revenue increased 2.8% to $483.3 million.
Founder and CEO Eric Yuan said the company saw "continued momentum" during the quarter, highlighting growing adoption of Zoom's AI offerings.
"Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch," Yuan said.
The company also said Zoom Customer Experience continued to deliver accelerating high double-digit growth during the quarter.
At the end of the first quarter, Zoom had 4,534 customers contributing more than $100,000 in trailing 12-month revenue, representing an 8.2% increase year-over-year.
Zoom's trailing 12-month net dollar expansion rate for Enterprise customers increased to 99% from 98% in the prior-year period.
Cash, cash equivalents and marketable securities totaled $7.7 billion as of April 30, excluding restricted cash.
Zoom also announced that its board authorized the repurchase of an additional $1 billion of outstanding Class A common stock, adding to the $625 million remaining authorization as of April 30.
GuidanceZoom expects second-quarter adjusted earnings per share between $1.45 and $1.47, versus the consensus estimate of $1.48. In addition, it anticipates revenue of $1.26 billion to $1.27 billion, versus the consensus estimate of $1.26 billion.
Zoom also raised its fiscal-year 2027 adjusted earnings per share guidance from between $5.77 to $5.81 to between $5.96 to $6.00, versus the consensus estimate of $5.87. Zoom raised its revenue guidance from between $5.06 billion and $5.07 billion to between $5.08 billion and $5.09 billion, versus the consensus estimate of $5.07 billion.
Analyst Consensus & Recent ActionsThe stock carries a Buy rating with an average price target of $104.75. Recent analyst moves include:
Piper Sandler: Neutral (Raises Target to $107.00) (May 22) Mizuho: Outperform (Raises Target to $120.00) (May 22) Keybanc: Upgraded to Sector Weight (May 22) Technical Picture Remains BullishZoom is trading about 4.1% above its 20-day SMA ($100.61) and roughly 23.2% above its 200-day SMA ($84.97), keeping the intermediate and long-term trend pointed higher. The 20-day SMA is above the 50-day SMA, and the golden cross in May (50-day SMA moving above the 200-day SMA) reinforces that the bigger-picture trend has flipped bullish.
Momentum is more "reset than stretched" right now, with RSI at 49.77 sitting in neutral territory after earlier extremes (oversold in February and overbought in April). In plain terms, RSI helps gauge whether a move is getting overheated; here, it suggests the stock has room to move without immediately flashing an overbought warning.
Key Resistance: $111.50 — sits right under the 52-week high area ($111.56), a zone where rallies can stall as sellers defend prior peaks Key Support: $87.00 — lines up near the broader moving-average cluster (around the 100-day/200-day region), a level that can act as a "line in the sand" if the trend cools Zoom Shares GainZM Price Action: At the time of publication, Zoom shares are trading 9.56% higher at $106.00, according to data from Benzinga Pro.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Zoom Technologies Inc (NASDAQ:ZOOM) reported first quarter results that topped Wall Street expectations, driven by stronger enterprise demand and rapid adoption of its AI features, sending shares up roughly 12% in Friday morning trading.
The company posted adjusted earnings per share of $1.55, ahead of analyst estimates of about $1.41, while revenue rose to $1.24 billion versus consensus expectations of $1.22 billion.
Total revenue increased 5.5% year over year, or 4.6% in constant currency, according to the company.
Zoom said growth was supported by continued expansion in its enterprise segment and accelerating engagement with AI-driven tools. Paid usage of its AI Companion product increased 184% year over year during the quarter, a trend the company pointed to as a meaningful contributor to customer expansion and retention.
Enterprise revenue rose 7.2% to $755.7 million, beating expectations of about $738.8 million. Online revenue increased to $483.3 million, slightly ahead of estimates.
The company also reported 4,534 customers generating more than $100,000 in trailing 12-month revenue, an 8.2% increase from a year earlier.
“Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch,” Zoom CEO Eric Yuan said.
“With strong profitability, cash flow, and an increased share repurchase authorization, we remain focused on turning AI innovation into durable growth, measurable customer value, and long-term shareholder returns.”
Looking ahead, Zoom issued guidance for the second quarter of fiscal 2027 calling for revenue between $1.265 billion and $1.27 billion, with non-GAAP earnings per share expected between $1.45 and $1.47.
For the full fiscal year, the company projected revenue of $5.08 billion to $5.09 billion and non-GAAP EPS of $5.96 to $6, alongside free cash flow of $1.70 billion to $1.74 billion.
Key Takeaways Zoom posted fiscal Q1 EPS of $1.55 and revenues of $1.24B, beating guidance and rising Y/Y. Zoom's enterprise revenues rose 7.2%, with large customers growing 8.2% to 4,534 accounts.Zoom raised fiscal 2027 outlook and expanded AI push, with AI Companion users up 184% Y/Y. Zoom Communications (ZM - Free Report) reported first-quarter fiscal 2027 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate by 9.93% and increased 8.4% year over year. The figure also came in 13 cents above the company's guided range of $1.40-$1.42.
Revenues of $1.24 billion beat the consensus mark by 1.26% and increased 5.5% year over year, exceeding the guidance by $14 million. Adjusting for foreign currency impact, revenues in constant currency were $1.23 billion, up 4.6% year over year.
ZM's Q1 DetailsEnterprise revenues, which account for 61% of total revenues, increased 7.2% year over year to $755.7 million. Online revenues, which represent 39% of total revenues, increased 2.8% year over year to $483.3 million. Customers contributing more than $100,000 in revenues in the trailing 12 months grew 8.2% to 4,534. These customers accounted for 33% of revenues, up one percentage point year over year.
The company reported a trailing 12-month net dollar expansion rate for Enterprise customers of 99%, up from 98% in the year-ago quarter. Online average monthly churn was 3.0% in the first quarter compared with 2.8% in the prior-year period. The percentage of total Online MRR from Online customers with a continued term of service of at least 16 months was 74.4%, up 20 basis points year over year.
ZM's Margin & Operating DetailsNon-GAAP gross margin in the fiscal first quarter was 79.9% compared with 79.2% in the year-ago period, expanding 70 basis points. On a GAAP basis, research and development expenses increased 11% year over year to $227.9 million. Sales and marketing expenses declined 4.9% to $330.1 million, and general and administrative expenses fell 5.9% to $96.3 million. Non-GAAP operating income rose 8.9% to $508.7 million year over year, exceeding the high end of guidance by $17 million.
The non-GAAP operating margin was 41.1%, up 130 basis points from 39.8% in the year-ago quarter. GAAP income from operations was $310.5 million, with a GAAP operating margin of 25.1%, up 450 basis points year over year.
ZM's Balance Sheet & Cash FlowTotal cash, cash equivalents and marketable securities, excluding restricted cash, as of April 30, 2026, were $7.7 billion, compared with $7.8 billion as of Jan. 31, 2026. Net cash provided by operating activities was $521.6 million for the fiscal first quarter compared with $489.3 million in the year-ago quarter. Free cash flow was $500.5 million compared with $463.4 million in the prior-year quarter. In the first quarter, Zoom repurchased 4.2 million shares of Class A common stock for $362 million.
ZM's Q1 DevelopmentsDuring the quarter, Zoom appointed Russell Dicker as chief product officer to lead its AI-first product roadmap. The company advanced its AI strategy with AI Companion 3.0, with paid AI Companion monthly active users growing 184% year over year and the newly launched My Notes reaching 1.5 million monthly active users within four months of launch. Zoom also launched Zoom AI services — including the Scribe API for speech-to-text — and introduced CX Insights and AI Expert Assist 3.0 within Zoom Customer Experience. Alongside the earnings release, Zoom's board authorized an incremental $1.0 billion share repurchase, on top of the $625 million remaining under its prior authorization as of April 30, 2026.
ZM's Q2 & FY27 GuidanceZoom 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. 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. For fiscal 2027, Zoom raised its guidance and now expects revenues in the range of $5.08-$5.09 billion. Revenues on a constant-currency basis are expected to be between $5.062 billion and $5.072 billion. Non-GAAP income from operations is expected to be between $2.065 billion and $2.075 billion. Non-GAAP EPS are expected to be in the band of $5.96-$6. The company expects free cash flow between $1.7 billion and $1.74 billion.
Zacks Rank & Stocks to ConsiderCurrently, ZM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Broadcom have gained 18.8% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.47 per share, up by 2 cents over the past seven days, indicating a year-over-year surge of 68.2%.
Shares of Celestica have gained 14.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have declined 11.7% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.
Zoom Communications ZM reported impressive Q1 results, surpassing expectations in both revenue and earnings per share (EPS). The company is enhancing its position as an AI-driven “system of action,” while maintaining strong profitability and cash flow.
Q1 adjusted EPS reached $1.55, exceeding the FactSet consensus by $0.13. Revenue grew 5.5% year-over-year to $1.24 billion, also beating estimates. Enterprise revenue rose 7.2% to $755.7 million, making up 61% of total sales, indicating a shift towards higher-value customers. ZM ended the quarter with 4,534 customers generating over $100,000 in trailing 12-month revenue, an 8.2% increase year-over-year, while enterprise net dollar expansion improved to 99%. AI adoption showed significant growth, with paid monthly active users for AI Companion up 184% year-over-year and My Notes exceeding 1.5 million licensed users within four months. The introduction of new AI monetization features, including Custom AI Companion and ZVA Receptionist, suggests potential for increased revenue across various use cases. Backlog and billings remained strong, with remaining performance obligations (RPO) up 11% to approximately $4.3 billion and non-current RPO up 19%. Profitability metrics were solid, with a non-GAAP operating margin of 41.1% and a free cash flow margin of 40.4%. The company also announced a $1.0 billion share repurchase program. Guidance for Q2 EPS is projected at $1.45-$1.47, slightly below consensus, while revenue guidance of $1.265-$1.270 billion aligns closely with expectations. For FY27, EPS guidance is $5.96-$6.00 and revenue guidance is $5.08-$5.09 billion, both above consensus estimates.ZM's Q1 performance highlights the ongoing transition to a more diversified growth model, supported by strong demand for AI-driven products. Management emphasized the company's evolution beyond traditional meetings into a comprehensive workflow platform, leveraging conversation data through AI. This strategic direction is still in its early stages, but the evidence of product-market fit, particularly with AI Companion and Custom AI Companion, is promising. The robust margins and cash flow, alongside the new buyback program, reflect confidence in ZM's business sustainability.
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].
Shares of Zoom jumped after the company raised its full-year forecast for both adjusted earnings and revenue, prompting an upgrade at KeyBanc and higher price targets at both RBC and Baird. Zoom CFO Michelle Chang joins Ed Ludlow on "Bloomberg Tech.
Zoom Communications Inc. (NASDAQ:ZM) on Thursday reported better-than-expected first-quarter financial results and raised its FY27 guidance.
Zoom reported revenue of $1.24 billion for the first quarter, beating the consensus estimate of $1.22 billion. The company posted first-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.42 per share, according to Benzinga Pro.
"Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch," said Eric Yuan, founder and CEO of Zoom.
The company now expects full-year revenue of $5.08 billion to $5.09 billion, versus estimates of $5.07 billion. Zoom now sees full-year adjusted earnings of $5.96 to $6 per share versus estimates of $5.87 per share.
Zoom shares gained 10.4% to trade at $106.89 on Friday.
These analysts made changes to their price targets on Zoom following earnings announcement.
Considering buying ZM stock? Here’s what analysts think:
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Zoom has reportedly netted around $1 billion from an investment in Anthropic.
That’s according to a report Friday (May 22) from Bloomberg News, citing a regulatory filing. The total value of the videoconferencing firm’s stake in the artificial intelligence startup is about $1.27 billion, the report added, a number that could climb as Anthropic wraps another round of funding.
Zoom invested $51 million in Anthropic in 2023 as part of a partnership to use the company’s Claude models.
Since then, the Bloomberg report added, Anthropic has turned into one of the fastest-growing and most-watched startups in the world.
Zoom’s assessment of its stake in Anthropic is based on a fundraising round from February valuing the company at $380 billion, though the startup is reportedly close to finalizing a round at a valuation of more than $900 billion, and by some calculations, as high as $1 trillion.
“A timely investment in a financial rocket ship” has helped boost Zoom’s share price in recent weeks, KeyBanc analyst Jackson Ader said in a note after Zoom’s quarterly earnings report last week, the report added.
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In other AI news, recent PYMNTS Intelligence research shows a lack of progress in preparing workers to use AI on the job.
An April PYMNTS Intelligence study, “Wage to Wallet™ Index – The Resilience Deficit: Labor Workers in an Automated Economy,” found that close to half of all workers in the United States in salaried or higher-paying roles had gotten no on-the-job training on how to use AI tools, new technologies or automated processes in their positions in the prior 12 months.
“College graduates know how to use ChatGPT to write essays and Google Gemini’s Nano Banana to generate images and edit photos, but too few workers are getting too little guidance on how to use the technological tools increasingly penetrating the workplace,” PYMNTS wrote.
A separate PYMNTS Intelligence report from earlier this month, “Financial Services Pulls Ahead in the Enterprise AI Race,” revealed that companies are rapidly embedding AI into their workflows and operations.
“Financial services firms have scaled AI across nearly three times as many tasks as healthcare firms, concentrating their deployment in back-office functions like revenue recognition, credit risk assessment and sales forecasting,” the report said. “Healthcare is deploying AI through customer service chatbots. Media and advertising companies are using AI for content quality assurance, board and executive briefing preparation, and improving logistics.”
For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.
Have you evaluated the performance of Zoom Communications' (ZM - Free Report) international operations for the quarter ending April 2026? Given the extensive global presence of this video-conferencing company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
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.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While delving into ZM's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter stood at $1.24 billion, increasing 5.5% year over year. Now, let's delve into ZM's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at ZM's Revenue Streams AbroadEMEA generated $194.92 million in revenues for the company in the last quarter, constituting 15.7% of the total. This represented a surprise of +1.74% compared to the $191.59 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $196 million (15.7%), and in the year-ago quarter, it contributed $185 million (15.8%) to the total revenue.
Of the total revenue, $150.51 million came from APAC during the last fiscal quarter, accounting for 12.2%. This represented a surprise of +1.98% as analysts had expected the region to contribute $147.59 million to the total revenue. In comparison, the region contributed $151 million, or 12.1%, and $142 million, or 12.1%, to total revenue in the previous and year-ago quarters, respectively.
International Market Revenue ProjectionsThe current fiscal quarter's total revenue for Zoom, as projected by Wall Street analysts, is expected to reach $1.27 billion, reflecting an increase of 4% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: EMEA is anticipated to contribute 15.7% or $199.18 million, and APAC 12.1% or $153.44 million.
Analysts expect the company to report a total annual revenue of $5.06 billion for the full year, marking an increase of 3.9% compared to last year. The expected revenue contributions from EMEA and APAC are projected to be 15.9% ($805.19 million), and 12.3% ($620.29 million) of the total revenue, in that order.
Final ThoughtsZoom's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Currently, Zoom holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Reviewing Zoom Communications' Recent Stock Price TrendsOver the past month, the stock has gained 14.8% versus the Zacks S&P 500 composite's 4.8% increase. The Zacks Computer and Technology sector, of which Zoom is a part, has risen 9.5% over the same period. The company's shares have increased 42.9% over the past three months compared to the S&P 500's 8.4% increase. Over the same period, the sector has risen 18.7%
Key Takeaways Zoom beat Q1 revenues and EPS, then lifted FY2027 revenues and non-GAAP EPS guidance.AI Companion paid MAUs rose 184% YoY; My Notes hit 1.5M users in four months.Zoom CX saw accelerating high double-digit growth; paid AI was in 9 of the top 10 ZCX deals. Zoom Communications, Inc. (ZM - Free Report) used its first-quarter fiscal 2027 earnings call to argue that its next phase is less about video meetings and more about turning conversations into completed work. Management’s central message was that AI is starting to pull through both product adoption and larger multiproduct deals.
That framing mattered because Zoom also paired the strategy update with a revenue beat, higher full-year guidance and a larger buyback authorization, giving investors a clearer view of how management wants AI and customer experience to support durable growth.
ZM Pushes AI Beyond Meeting SummariesChief executive officer Eric Yuan spent much of the call recasting Zoom as an AI-first system of action for modern work. His emphasis was on moving from conversation-centric products to tools that automate follow-through, retrieval and workflows after a call ends.
That pitch was backed by rising usage. Management said AI Companion paid monthly active users climbed 184% year over year, while My Notes reached 1.5 million users within four months of launch. The company positioned those products as proof that AI is gaining traction inside the installed base.
Yuan also pointed to custom AI Companion, workflow tools and enterprise retrieval as the features meant to convert that usage into monetization. In Q&A, he said those capabilities are key to shifting Zoom from a platform centered on calls to one centered on task completion.
Zoom Finds Growth in CX and PhoneA second theme was the widening role of customer experience and phone offerings. Yuan said Zoom Customer Experience posted accelerating high double-digit growth, with paid AI included in nine of the top 10 ZCX deals.
Management tied that momentum to competitive displacements and to Zoom’s pitch around unified communications plus contact center. Yuan argued Zoom’s advantage is that it can bridge UC and CX on a native platform, while chief financial officer Michelle Chang said larger deals increasingly reflect that bundled story.
Zoom Phone also remained important. Yuan said phone annual recurring revenues grew in the mid-teens, and several of the customer examples highlighted on the call paired phone with AI and contact center tools rather than selling a single product in isolation.
ZM Raises Full-Year ViewThe quarter’s financial backdrop was solid but management kept the focus on what it means for the year ahead. Revenues rose 5.5% to $1.24 billion, beating the Zacks Consensus Estimate of $1.22 billion by 1.26%. Adjusted EPS came in at $1.55, topping the consensus mark of $1.41 by 9.59%.
Chang said revenues exceeded the high end of guidance by about $14 million and non-GAAP operating income topped the high end by $17 million. Enterprise revenues grew 7.2%, with enterprise customers now accounting for 61% of total revenues.
For fiscal 2027, Zoom raised guidance to $5.080-$5.090 billion in revenues and $5.96 to $6.00 in non-GAAP EPS. It also raised its repurchase authorization by $1 billion, adding to the $625 million remaining as of April 30.
Zoom Faces Questions on Online TrendsAnalysts pressed management on whether the stronger quarter was mostly an enterprise story and whether online trends remain a constraint. Chang acknowledged that online average monthly churn rose to 3.0% from 2.8% a year earlier, though she described the increase as nominal.
She drew a sharper contrast between the segments by calling enterprise growth durable and saying online will still grow slightly for the full year, even as quarterly growth rates slow from easier comparisons and foreign exchange effects.
That exchange mattered because it showed where management believes the business is gaining quality. The call repeatedly returned to enterprise mix, AI monetization and higher-value bundled deals rather than to volume growth in the legacy online channel.
ZM Leans on Longer-Term Enterprise DealsAnother point of investor focus was deal structure. Chang said deferred revenues grew 5% year over year, above prior expectations, because fewer large contracts required grace periods than management had anticipated.
She also highlighted remaining performance obligations of about $4.3 billion, up 11%, driven by 19% growth in noncurrent RPO. In Q&A, Chang linked that trend to longer-duration multiproduct deals, especially in phone, contact center and AI.
Yuan reinforced that message by saying eight of the top 10 CX deals displaced legacy vendors and all 10 were channel driven. That gave management another way to argue that Zoom’s newer enterprise motions are scaling.
Zoom Keeps Its Message on ExecutionBy the end of the call, management’s tone was confident and tightly focused. Yuan repeatedly returned to product innovation, AI completion workflows and the need to improve customer awareness of what the platform can now do.
Chang’s role on the call was to show that the strategy is being matched by margin discipline, cash flow and capital returns. Together, the prepared remarks and Q&A left the clearest impression that Zoom wants investors to judge it less by meeting growth and more by how effectively it monetizes AI, CX and enterprise platform breadth.
What Zacks Signals SayZM currently carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of C, Momentum Score of B and VGM Score of C. Under the Zacks framework, Rank #1 and #2 stocks paired with A or B Style Scores have the strongest expected near-term performance, while a Rank #3 can still be held, with higher letter grades viewed more favorably than lower ones. You can see the complete list of today’s Zacks #1 Rank stocks here.
For ZM, the B Momentum Score stands out more favorably than its other style grades, while the overall Rank and VGM Score point to a more balanced setup than a high-conviction signal. As always, the Zacks Rank can change as earnings estimate revisions move after the quarter and management’s updated outlook are absorbed.
Anthropic is one of the market's most hotly anticipated IPOs, with investors eagerly awaiting the company's announcement that it's going public. The large language model (LLM) maker has been seeing explosive growth, with its revenue reportedly set to double quarter over quarter, from $4.8 billion in Q1 to $10.9 billion in Q2. This acceleration also isn't growth at any cost, as the company is expected to turn in an operating profit of $559 million in Q2.
While it offers a consumer product, Anthropic has made its mark by focusing on the enterprise market, where it generates about 80% of its revenue. The company has found a strong niche in coding, with its Claude Cowork and Claude Code products helping drive its growth.
Anthropic has drawn investments from several large companies, including Amazon and Alphabet. However, there is an under-the-radar stock that's set to benefit much more from Anthropic's success than these behemoths. That company is video-conferencing platform operator, Zoom (ZM +1.28%).
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An early Anthropic investor Zoom's investment arm, Zoom Ventures, took a stake in Anthropic in May 2023. While the original size of the investment hasn't been disclosed, it's widely believed to have been the bulk of the $51 million in investments it made during the quarter. Zoom later made another $46 million investment in Anthropic preferred shares in Q1. In its latest 10-Q filing, it said its total investment was valued at $1.27 billion based on Anthropic's February valuation round, which was done at $380 billion.
However, fast forward a few months, and Anthropic is looking to raise funds at an over $900 billion valuation this month. That would value Zoom's Anthropic holding at over $3 billion. Meanwhile, given its growth, it wouldn't be surprising to see the company eventually IPO at a much higher market cap.
Zoom currently has a market cap of around $31 billion. It also has $7.7 billion in cash and marketable securities to go along with its Anthropic investment and no debt. That means its core business is currently being valued closer to $20 billion. The company is also generating around $2 billion in free cash flow a year.
Image source: Getty Images.
The company's core business has also been showing some signs of life. Revenue rose 5.5% last quarter, with enterprise revenue climbing 7.2%. It also saw its number of customers with more than $100,000 in trailing revenue jump 8.2%.
With Anthropic worth about 13% of Zoom's enterprise value and the company generating a ton of cash and seeing revenue growth, buying Zoom stock can be a sneaky way to play Anthropic before its IPO.
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 +4.4%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Internet - Software industry, which Zoom falls in, has lost 1.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Zoom is expected to post earnings of $1.47 per share for the current quarter, representing a year-over-year change of -3.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $5.9 for the current fiscal year indicates a year-over-year change of -0.3%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.13 indicates a change of +3.9% from what Zoom is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
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.
For Zoom, the consensus sales estimate for the current quarter of $1.27 billion indicates a year-over-year change of +4.2%. For the current and next fiscal years, $5.08 billion and $5.25 billion estimates indicate +4.2% and +3.4% changes, 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Zoom is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Zoom. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Generally available today, ZoomMate combines agentic search, AI-generated presentations and deliverables, and automated execution in Salesforce, Jira, Slack, ServiceNow, and more SAN JOSE, Calif., June 01, 2026 (GLOBE NEWSWIRE) -- Today, Zoom Communications, Inc. (NASDAQ: ZM) announced the launch of ZoomMate, an agentic AI work surface to help people move from workplace conversations to execution without losing context along the way. Built on Zoom’s system of action vision announced in March, ZoomMate connects live conversational context to agentic search, workflow execution, custom agents, and AI content creation.
ZoomMate helps users overcome the friction introduced by fragmented tools and incomplete workflows by surfacing information across Zoom and connected business systems, creating deliverables from meeting and enterprise context, and coordinating follow-through across workflows without switching tools. This shift reflects Zoom’s long-term vision for a system of action that moves conversations into completed work.
“What drew me to Zoom was a simple truth: no other company sits where Zoom sits — at the center of every conversation where work decisions get made,” said Russell Dicker, chief product officer at Zoom. “ZoomMate is built on this insight. Before, during, and after the meeting, ZoomMate connects what was decided to what needs to happen next across every system where your work lives.”
“The market is moving away from isolated AI helpers and toward tools that can better connect decisions, data, and workflows across an organization,” said Melody Brue, vice president and principal analyst at Moor Insights & Strategy. “Many AI offerings operate on the edges of work, with limited access to the real-time context affecting decisions. ZoomMate approaches this differently because it sits inside the conversations where those decisions unfold. This can give it live business context and help make its recommendations more grounded in the work that teams are actually doing.”
ZoomMate capabilities: Search, orchestrate, and complete
ZoomMate introduces advanced agentic AI capabilities that help teams move from insight to completion.
Agentic Search: Bring enterprise knowledge into every conversation
ZoomMate helps users search across Zoom, the web, and third-party systems to find the most relevant information for a project, account, ticket, policy, or business question.By connecting to data sources such as ServiceNow, Salesforce, and Workday, and indexing across users’ integrated enterprise systems, ZoomMate can surface information from enterprise files, including customer records, open issues, service tickets, knowledge articles, project updates, files, and other business content.Relevant context from Zoom Meetings, Phone, Chat, and other connected collaboration platforms — including Google and Microsoft — can be directly integrated into the flow of work, so users always have what they need without switching tools or breaking focus.Results are grounded in the organization's connected knowledge and designed to respect enterprise access controls, permissions, and governance.Unlike enterprise search tools that index documents alone, ZoomMate connects the files, the records, and the conversations behind them.
Orchestrate: Coordinate follow-through across teams, apps, and systems
ZoomMate’s agentic layer enables proactive coordination and execution across systems, combining AI workflows with intelligent agents that can act, learn, and adapt within enterprise environments.Agents can monitor ongoing projects, identify next steps from meeting context, and automatically initiate follow-up actions, ensuring continuity from conversation to completion.Coordinates real-time task execution across meetings, apps, and systems to turn recurring processes into repeatable workflows.Schedules events in Google Calendar or Microsoft Outlook and routes requests to appropriate systems.Updates records, creates follow-up tasks, drafts customer communications, and triggers onboarding or support workflows.Reduces handoff gaps by connecting conversational context with execution. Complete: Turn meetings and enterprise context into finished deliverables
ZoomMate turns meetings into finished work, automatically creating presentations, documents, spreadsheets, reports, and project plans from meeting conversations and enterprise context so teams can move from discussion to execution faster.Leveraging Zoom's AI Productivity Suite, ZoomMate can update deliverables as decisions evolve, keeping plans, documents, and other outputs current in real time without manual syncing.Unlike AI tools that solely rely on prompts or manual context, ZoomMate understands what was discussed to generate grounded, relevant outputs directly from meeting context, delivering content in the form of presentations, documents, and spreadsheets.
How teams can use ZoomMate
ZoomMate integrates into existing team workflows to provide real-time assistance and continuity from the first meeting to the final deliverable. By connecting conversational context with enterprise data, teams can automate repetitive administrative tasks and focus on high-value execution.
Knowledge workers: Users can ask ZoomMate to pull key information from Google Docs, open Jira issues, and surface recent Slack discussions before a meeting starts. Then, they could ask ZoomMate to manage and schedule events in Google Calendar or Outlook without having to hunt down each person’s availability. And finally, ZoomMate can help users track down specific information across various documents and data sources, such as Google Drive and SharePoint, for project updates, while using the conversation as the source of truth.Sales teams: ZoomMate can retrieve account details from Salesforce before a call, update opportunity records immediately after, and draft follow-up proposals using the meeting transcript, without the rep switching applications.Product and engineering teams: ZoomMate can pull project background from Google Docs, identify open Jira issues, surface relevant discussions from collaboration tools, and turn action items into structured plans or status updates that reflect the latest decisions.HR and operations teams: ZoomMate can answer general policy questions from connected knowledge bases, route employee requests to the appropriate system, and automatically trigger onboarding workflows when a new hire's start date is confirmed. Conversations as the orchestration layer for modern work
As AI becomes embedded across workplace software, the next challenge is not simply generating more content or summarizing more meetings — it is helping teams complete the work that conversations create. Zoom believes that conversations are the context layer for modern work because they capture decisions, intent, approvals, objections, and next steps that drive meaningful business outcomes.
ZoomMate is built around that idea. By connecting conversational context with enterprise systems and agentic execution, ZoomMate helps teams move from discussion to action without rebuilding context across disconnected tools. It reflects Zoom’s broader platform vision: a conversation-centric system of action where live collaboration becomes completed work.
ZoomMate is available today for online and direct customers in North America, starting at $20 per user per month with included AI credits. Availability for additional industry verticals and regions, including EMEA and APAC, is expected to roll out later this year.
*Note: While ZoomMate is generally available, it may not be accessible to all users right away, as it is being rolled out gradually.
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 shares surged on Monday after AI startup Anthropic disclosed plans for an initial public offering, boosting the value of Zoom's early investment in the company.
Shares of Zoom rose 11% to $112.86 after Anthropic disclosed that it had confidentially submitted draft registration paperwork to the US Securities and Exchange Commission for a proposed initial public offering.
The announcement drew attention to Zoom's investment in the AI company.
Through its venture investment arm, Zoom invested $51 million in Anthropic in 2023.
That stake is now valued at more than $1 billion and could increase further if Anthropic achieves a higher valuation through its IPO process.
Zoom also disclosed in late May that it invested an additional $46 million in Anthropic between the end of January and April, increasing its exposure to one of the most closely watched companies in the artificial intelligence sector.
Anthropic has become one of the leading AI companies, attracting investor interest amid the rapid adoption of generative AI tools across industries.
The startup's decision to pursue a public listing has highlighted the potential gains for early investors, including Zoom.
With Anthropic's valuation rising significantly since Zoom's initial investment, the prospect of an IPO has increased investor focus on the value embedded within Zoom's venture portfolio.
The market reaction reflected optimism that Zoom could benefit not only from its core communications business but also from its strategic investments in emerging AI technologies.
Investor sentiment was also supported by Zoom's launch of ZoomMate, a new AI-powered work surface designed to convert workplace conversations into actionable tasks.
The product is built around Zoom's "system of action" strategy, connecting live meeting context with agentic search capabilities, workflow automation, custom AI agents, and AI-generated content creation tools.
The company said ZoomMate is designed to integrate meetings and productivity functions more closely, allowing users to move directly from discussion to execution within business workflows.
Zoom Video Communications has made ZoomMate available to customers in North America at a starting price of $20 per user per month.
The launch marks another step in the company's efforts to expand beyond video conferencing and establish itself as a broader enterprise productivity platform powered by artificial intelligence.
Zoom's AI initiatives have also influenced analyst sentiment following the company's first-quarter fiscal 2027 results.
Several Wall Street firms raised their price targets after the company's reported results exceeded expectations.
Rosenblatt increased its price target to $130, citing an earnings beat and higher guidance, with revenue, operating income, and free cash flow all surpassing expectations.
Benchmark raised its target to $125 while maintaining a Buy rating, highlighting Zoom's evolution into an AI-enabled enterprise platform.
Piper Sandler lifted its price target to $107, noting that results met expectations and showed modest revenue growth.
Cantor Fitzgerald increased its target to $104, pointing to growing adoption of Zoom's AI and communications products.
The combination of a potentially lucrative Anthropic investment, the rollout of ZoomMate, and improving analyst sentiment has renewed investor interest in Zoom as the company seeks to deepen its presence in the rapidly expanding artificial intelligence market.
Zoom is rebounding strongly, with >30% gains since early 2026, outperforming the broader market. Firming revenue growth, robust profitability, and a deeply undervalued stock underpin my reiterated buy rating. ZM's significant cash position and its >$1 billion stake in Anthropic provide additional upside and strategic flexibility.
Zoom Communications (ZM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this video-conferencing company have returned -6% over the past month versus the Zacks S&P 500 composite's no change. The Zacks Internet - Software industry, to which Zoom belongs, has gained 0.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Zoom is expected to post earnings of $1.49 per share, indicating a change of -2.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.5% over the last 30 days.
The consensus earnings estimate of $6.04 for the current fiscal year indicates a year-over-year change of +2%. This estimate has changed +3.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.21 indicates a change of +2.8% from what Zoom is expected to report a year ago. Over the past month, the estimate has changed +1.3%.
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
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
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 $5.08 billion and $5.25 billion estimates for the current and next fiscal years indicate changes of +4.4% and +3.3%, 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.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Zoom is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
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.
