Zoom Communications (NASDAQ:ZM) Releases Q1 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 1.400-1.420 for the period, compared to the consensus estimate of 0.860. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.2 billion. Zoom Communications also updated its FY 2027 guidance to 5.770-5.810 EPS.

Zoom Communications Stock Down 2.4%

Shares of Zoom Communications stock traded down $2.08 on Wednesday, hitting $85.43. The stock had a trading volume of 6,835,231 shares, compared to its average volume of 3,835,698. The stock has a market cap of $25.30 billion, a price-to-earnings ratio of 16.62, a price-to-earnings-growth ratio of 7.71 and a beta of 0.90. Zoom Communications has a twelve month low of $64.41 and a twelve month high of $97.58. The business’s 50 day moving average is $88.29 and its two-hundred day moving average is $84.42.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.04). Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The company’s revenue was up 5.3% compared to the same quarter last year. During the same period in the prior year, the company earned $1.41 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, equities analysts predict that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

ZM has been the topic of a number of recent research reports. Needham & Company LLC reaffirmed a “buy” rating and set a $100.00 price target on shares of Zoom Communications in a research report on Tuesday, November 25th. Wolfe Research upgraded shares of Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 price target for the company in a research report on Thursday, February 5th. Cantor Fitzgerald reissued a “neutral” rating and set a $87.00 price target on shares of Zoom Communications in a research report on Tuesday, November 25th. Piper Sandler raised their price objective on Zoom Communications from $85.00 to $91.00 and gave the stock a “neutral” rating in a research note on Monday, January 5th. Finally, Benchmark cut their target price on Zoom Communications from $115.00 to $110.00 and set a “buy” rating for the company in a research report on Tuesday. 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 company’s stock. Based on data from MarketBeat, Zoom Communications currently has a consensus rating of “Hold” and an average price target of $94.74.

Insider Transactions at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,568 shares of the firm’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 value of $655,010.40. Following the sale, the insider directly owned 136,182 shares in the company, valued at approximately $11,786,552.10. This trade represents a 5.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Aparna Bawa sold 12,137 shares of the stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $81.37, for a total transaction of $987,587.69. Following the completion of the transaction, the chief operating officer directly owned 1,978 shares of the company’s stock, valued at approximately $160,949.86. The trade was a 85.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 183,089 shares of company stock valued at $15,751,383. 10.78% of the stock is owned by company insiders.

Zoom Communications News Roundup

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

• Positive Sentiment: Enterprise strength and large-customer traction: Enterprise revenue rose 7.1% YoY to $757.3M and the number of customers contributing >$100k in trailing 12-month revenue grew ~9.3% YoY, showing resilience in the high-value segment — a structural positive for durable revenue. Zoom Q4 Report
• Positive Sentiment: Product push to diversify revenue: Zoom introduced Zoom Virtual Agent 3.0 to expand automation and customer-service offerings, which could boost monetization outside the core meetings product over time. ZVA 3.0 Release
• Neutral Sentiment: Revenue modestly above expectations: Q4 total revenue was $1.247B, up ~5% YoY and slightly above Street estimates, and management guided Q1 revenue roughly $1.22B (near analyst forecasts) — revenue growth is steady but not accelerating. Earnings Snapshot
• Neutral Sentiment: Analyst reactions mixed: Some firms reaffirmed market-perform / neutral ratings ahead of or after the print; expectations vary, so follow-through analyst revisions could drive more moves. Analyst Notes
• Negative Sentiment: Earnings miss: Non-GAAP EPS of $1.44 missed the Zacks/Street consensus (~$1.48), which pressured the stock. Q4 Results
• Negative Sentiment: Profit guidance and competitive pressure disappointing: Multiple outlets report management’s profit guidance and commentary came in below some Street expectations and highlighted intense competition from Microsoft Teams and Google Meet plus a weak consumer/small-business segment — a catalyst for downside. Reuters Guidance Report

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors have recently modified their holdings of ZM. Advocate Investing Services LLC bought a new stake in shares of Zoom Communications during the fourth quarter worth about $26,000. Strive Financial Group LLC acquired a new position in Zoom Communications during the 4th quarter valued at about $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA increased 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 worth $38,000 after purchasing an additional 200 shares in the last quarter. Triumph Capital Management purchased a new stake in shares of Zoom Communications in the third quarter worth approximately $50,000. Finally, UMB Bank n.a. raised its stake in shares of Zoom Communications by 1,626.3% in the fourth quarter. UMB Bank n.a. now owns 656 shares of the company’s stock worth $57,000 after purchasing an additional 618 shares during the last quarter. 66.54% of the stock is owned by institutional investors and hedge funds.

Zoom Communications Company Profile

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.