Zoom Communications (NASDAQ:ZM) Issues Quarterly Earnings Results

Zoom Communications (NASDAQ:ZM) posted its earnings results on Wednesday. The company reported $1.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.04), FiscalAI reports. The business had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.23 billion. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The firm’s revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.41 earnings per share. Zoom Communications updated its FY 2027 guidance to 5.770-5.810 EPS and its Q1 2027 guidance to 1.400-1.420 EPS.

Here are the key takeaways from Zoom Communications’ conference call:

• Zoom says AI monetization is a primary growth driver — every top-10 CX deal this quarter included paid AI, ZCX ARR grew in high double-digits, ZVA Voice has rapid adoption, and AI Companion 3.0 was launched.
• Results and capital return beat expectations — Q4 revenue grew 5.3% (FY26 revenue +4.4%), non-GAAP margins improved, free cash flow was $1.9B for FY26, cash and marketable securities totaled $7.8B, and $2.7B of a $3.7B buyback plan has been repurchased.
• Strong enterprise momentum and product-led displacements — Zoom Phone ARR is growing in the mid-teens and Contact Center in high double-digits, with large wins (e.g., a Fortune 10 140k-seat Cisco replacement and a 150k-seat bank deployment) and increased multi-product bundling (Phone + Contact Center + Workplace).
• Near-term billing and margin headwinds — Q1 deferred revenue growth is guided modestly (1–2%) due to transition credits for large takeouts and recent white‑label churn; FY27 guidance also factors a ~ $50M interest income headwind and margin pressure from shifting stock-based comp to cash bonuses.

Zoom Communications Stock Performance

Zoom Communications stock traded down $11.43 during mid-day trading on Thursday, reaching $74.00. The company’s stock had a trading volume of 8,235,703 shares, compared to its average volume of 3,947,476. Zoom Communications has a 12-month low of $64.41 and a 12-month high of $97.58. The company has a market capitalization of $21.91 billion, a P/E ratio of 14.40, a PEG ratio of 7.84 and a beta of 0.90. The firm’s fifty day moving average price is $88.22 and its two-hundred day moving average price is $84.43.

Insider Activity

In other news, COO Aparna Bawa sold 12,137 shares of the firm’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $81.37, for a total value 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 $160,949.86. This trade represents a 85.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Santiago Subotovsky sold 2,475 shares of Zoom Communications stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $90.39, for a total value of $223,715.25. Following the completion of the transaction, the director owned 155,917 shares of the company’s stock, valued at approximately $14,093,337.63. This trade represents a 1.56% 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 valued at $15,751,383. 11.51% of the stock is currently owned by corporate insiders.

Institutional Trading of Zoom Communications

A number of large investors have recently modified their holdings of the business. AQR Capital Management LLC increased its position in shares of Zoom Communications by 43.9% in the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock worth $1,052,328,000 after purchasing an additional 3,718,186 shares during the last quarter. State Street Corp increased its holdings in shares of Zoom Communications by 5.0% in the 4th quarter. State Street Corp now owns 7,582,924 shares of the company’s stock worth $654,331,000 after buying an additional 363,776 shares during the last quarter. FIL Ltd raised its position in shares of Zoom Communications by 0.4% during the 4th quarter. FIL Ltd now owns 3,284,861 shares of the company’s stock valued at $283,451,000 after buying an additional 11,849 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Zoom Communications by 9.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,852,621 shares of the company’s stock valued at $246,153,000 after buying an additional 248,640 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of Zoom Communications by 46.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company’s stock worth $218,282,000 after acquiring an additional 836,594 shares during the last quarter. Institutional investors own 66.54% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on ZM. Rosenblatt Securities reissued a “buy” rating and set a $115.00 price objective on shares of Zoom Communications in a research report on Thursday. Weiss Ratings reiterated a “buy (b-)” rating on shares of Zoom Communications in a report on Monday, December 29th. Citigroup upgraded Zoom Communications from a “neutral” rating to a “buy” rating and boosted their price target for the company from $94.00 to $106.00 in a report on Monday, January 12th. Wedbush reissued an “outperform” rating and issued a $95.00 target price on shares of Zoom Communications in a research report on Tuesday, November 25th. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $100.00 target price on shares of Zoom Communications in a research note on Tuesday, November 25th. Fourteen research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $95.41.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: Revenue and enterprise strength — Q4 revenue of ~$1.25B beat Street estimates and grew ~5.3% year‑over‑year; enterprise revenue and the count of customers >$100k both showed healthy gains, supporting longer‑term commercial traction. Q4 Results
• Positive Sentiment: New AI product — Zoom launched Zoom Virtual Agent 3.0, which management positions as a growth lever in automated customer service and AI-enabled collaboration that could expand enterprise spend over time. ZVA 3.0
• Positive Sentiment: Capital return completed — management completed a $2.7B share repurchase program, which reduces share count and can support EPS over time. Buyback Mention
• Neutral Sentiment: Analyst divergence — some firms (Rosenblatt, BTIG) maintain buy ratings and higher price targets while others (KeyCorp, Citizens Jmp) remain cautious or market‑perform; the split increases near‑term volatility and reflects mixed views on Zoom’s growth runway. Analyst Notes
• Negative Sentiment: EPS miss — non‑GAAP EPS of $1.44 came in slightly below consensus (~$1.48–$1.49), a driver of the immediate selloff as it signals pressure on near‑term profitability. Earnings Miss
• Negative Sentiment: Cautious profit guidance & competition — management’s quarterly profit outlook was viewed as below some Street estimates and Reuters notes intensifying competition (Microsoft Teams, Google Meet) that could cap pricing/market share gains. These are the main reasons for the downward move today. Guidance & Competition

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.