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

Zoom Communications (NASDAQ:ZM) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 5.770-5.810 for the period, compared to the consensus earnings per share estimate of 3.690. The company issued revenue guidance of $5.1 billion-$5.1 billion, compared to the consensus revenue estimate of $5.0 billion. Zoom Communications also updated its Q1 2027 guidance to 1.400-1.420 EPS.

Analysts Set New Price Targets

ZM has been the topic of a number of research reports. Weiss Ratings restated a “buy (b-)” rating on shares of Zoom Communications in a report on Monday, December 29th. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price target on shares of Zoom Communications in a research note on Tuesday, November 25th. JPMorgan Chase & Co. boosted their price target on shares of Zoom Communications from $85.00 to $90.00 and gave the stock a “neutral” rating in a research report on Tuesday, November 25th. Zacks Research downgraded shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a report on Friday, February 13th. Finally, Citigroup raised shares of Zoom Communications from a “neutral” rating to a “buy” rating and raised their target price for the stock from $94.00 to $106.00 in a research note on Monday, January 12th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Zoom Communications presently has an average rating of “Hold” and an average price target of $94.74.

Zoom Communications Trading Down 2.4%

ZM stock traded down $2.08 during trading on Wednesday, reaching $85.43. 6,803,657 shares of the stock were exchanged, compared to its average volume of 3,830,082. The firm has a market capitalization of $25.30 billion, a price-to-earnings ratio of 16.62, a P/E/G ratio of 7.71 and a beta of 0.90. The business has a 50 day moving average price of $88.29 and a 200-day moving average price of $84.42. Zoom Communications has a 1 year low of $64.41 and a 1 year high of $97.58.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The business had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter last year, the firm earned $1.38 EPS. The business’s revenue was up 4.4% compared to the same quarter last year. On average, research analysts anticipate that Zoom Communications will post 2.93 EPS for the current year.

Insiders Place Their Bets

In other Zoom Communications news, CEO Eric S. Yuan sold 73,378 shares of Zoom Communications stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $87.29, for a total transaction of $6,405,165.62. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Velchamy Sankarlingam sold 7,568 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $86.55, for a total transaction of $655,010.40. Following the completion of the sale, the insider directly owned 136,182 shares in the company, valued at $11,786,552.10. This trade represents a 5.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 183,089 shares of company stock worth $15,751,383. Corporate insiders own 10.78% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ZM. Kestra Advisory Services LLC grew its stake in shares of Zoom Communications by 2.0% in the fourth quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company’s stock valued at $512,000 after buying an additional 116 shares in the last quarter. Daiwa Securities Group Inc. lifted its stake in Zoom Communications by 0.7% during the 2nd quarter. Daiwa Securities Group Inc. now owns 24,395 shares of the company’s stock worth $1,902,000 after acquiring an additional 181 shares in the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its holdings in Zoom Communications by 83.3% during the 4th 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 period. Principal Securities Inc. grew its position in Zoom Communications by 8.1% in the 4th quarter. Principal Securities Inc. now owns 3,053 shares of the company’s stock valued at $263,000 after acquiring an additional 230 shares in the last quarter. Finally, Utah Retirement Systems grew its position in Zoom Communications by 0.6% in the 4th quarter. Utah Retirement Systems now owns 43,622 shares of the company’s stock valued at $3,764,000 after acquiring an additional 245 shares in the last quarter. 66.54% of the stock is currently owned by institutional investors and hedge funds.

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.