Zoom Communications (NASDAQ:ZM) Issues FY 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM) updated its FY 2027 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 6.080-6.120 for the period, compared to the consensus earnings per share estimate of 5.710. The company issued revenue guidance of $5.1 billion-$5.1 billion, compared to the consensus revenue estimate of $5.1 billion. Zoom Communications also updated its Q3 2027 guidance to 1.460-1.480 EPS.

Zoom Communications Price Performance

Shares of ZM stock opened at $100.92 on Wednesday. Zoom Communications has a 1-year low of $70.70 and a 1-year high of $114.74. The firm has a market cap of $29.59 billion, a PE ratio of 14.82, a price-to-earnings-growth ratio of 5.53 and a beta of 1.00. The company has a 50-day moving average of $94.00 and a two-hundred day moving average of $91.30.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the previous year, the firm earned $1.53 EPS. The business’s revenue was up 4.9% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. Sell-side analysts anticipate that Zoom Communications will post 4.21 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Citigroup boosted their target price on Zoom Communications from $122.00 to $126.00 and gave the company a “buy” rating in a research report on Tuesday, May 26th. Bank of America began coverage on Zoom Communications in a research note on Wednesday, August 19th. They set a “buy” rating and a $130.00 target price on the stock. Mizuho boosted their price target on shares of Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a research note on Friday, May 22nd. Weiss Ratings cut shares of Zoom Communications from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, August 14th. Finally, Needham & Company LLC restated a “buy” rating and issued a $130.00 price objective on shares of Zoom Communications in a report on Thursday, July 2nd. Sixteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Zoom Communications presently has a consensus rating of “Moderate Buy” and an average target price of $111.55.

Insider Activity

In related news, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $90.80, for a total transaction of $770,801.20. Following the completion of the transaction, the chief financial officer owned 35,452 shares in the company, valued at approximately $3,219,041.60. The trade was a 19.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Velchamy Sankarlingam sold 7,644 shares of the firm’s stock in a transaction on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total value of $703,095.12. Following the completion of the sale, the insider owned 148,403 shares in the company, valued at approximately $13,650,107.94. This represents a 4.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 56,155 shares of company stock worth $5,654,761. 8.83% of the stock is currently owned by company insiders.

Key Zoom Communications News

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Zoom reported adjusted earnings of $1.55 per share and revenue of $1.28 billion, exceeding analyst estimates of $1.48 and $1.27 billion, respectively. Revenue increased 4.9% year over year, while enterprise revenue rose 7.8% to $787.5 million. Zoom Communications Reports Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.08-$6.12, above the roughly $5.71 consensus cited in company updates. AI-powered deals, record contact-center bookings and larger enterprise wins were highlighted as drivers of future growth. Zoom Q2 2027 Earnings Call Highlights
• Neutral Sentiment: Analyst opinion remains divided. BTIG reaffirmed a Buy rating with a $125 price target, while Cantor Fitzgerald maintained a Neutral rating with a $104 target, reflecting uncertainty over the pace of Zoom’s growth and AI monetization. BTIG Buy Rating
• Negative Sentiment: Zoom’s third-quarter profit outlook came in below Wall Street expectations, despite revenue guidance near consensus. The forecast suggests that competition is pressuring margins and that AI investments have not yet produced enough incremental growth to satisfy investors. Zoom Forecasts Quarterly Profit Below Estimates
• Negative Sentiment: The earnings beat was relatively modest, with revenue growth remaining in the mid-single digits and online growth described as tempered. Reports characterized the outlook as flat or soft, causing the near-term guidance to overshadow the quarter’s better-than-expected results. Zoom’s Soft Q3 Guidance Overshadows Q2 Double Beat

Hedge Funds Weigh In On Zoom Communications

Several hedge funds have recently added to or reduced their stakes in the stock. Advocate Investing Services LLC purchased a new stake in shares of Zoom Communications during the 4th quarter worth approximately $26,000. Strive Financial Group LLC acquired a new stake in Zoom Communications during the 4th quarter worth $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its position in Zoom Communications by 83.3% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company’s stock valued at $38,000 after acquiring an additional 200 shares during the last quarter. Triumph Capital Management acquired a new position in Zoom Communications in the third quarter valued at $50,000. Finally, UMB Bank n.a. boosted its stake in Zoom Communications by 1,626.3% in the fourth quarter. UMB Bank n.a. now owns 656 shares of the company’s stock valued at $57,000 after acquiring an additional 618 shares in the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

About Zoom Communications

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.