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

Zoom Communications (NASDAQ:ZMGet Free Report) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 5.960-6.000 for the period, compared to the consensus EPS estimate of 5.490. 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 Q2 2027 guidance to 1.450-1.470 EPS.

Zoom Communications Trading Down 2.7%

Zoom Communications stock traded down $2.67 during mid-day trading on Thursday, hitting $96.75. The company had a trading volume of 8,481,520 shares, compared to its average volume of 4,376,646. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $111.56. The company’s fifty day moving average is $87.73 and its 200-day moving average is $86.52. The company has a market capitalization of $28.51 billion, a price-to-earnings ratio of 15.60, a P/E/G ratio of 5.57 and a beta of 1.00.

Zoom Communications (NASDAQ:ZMGet Free Report) last released its quarterly earnings data on Thursday, May 21st. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.41 by $0.14. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. 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. As a group, sell-side analysts expect that Zoom Communications will post 3.94 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

ZM has been the topic of several recent research reports. Weiss Ratings upgraded Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, May 1st. Zacks Research lowered Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Citigroup upped their price objective on Zoom Communications from $106.00 to $122.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Needham & Company LLC restated a “buy” rating and issued a $100.00 price objective on shares of Zoom Communications in a research report on Friday, March 13th. Finally, Argus upgraded Zoom Communications to a “hold” rating in a research report on Monday, March 9th. Fourteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $97.57.

Get Our Latest Research Report on ZM

Insider Transactions at Zoom Communications

In related news, Director Santiago Subotovsky sold 5,274 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $106.58, for a total value of $562,102.92. Following the completion of the transaction, the director directly owned 142,882 shares of the company’s stock, valued at approximately $15,228,363.56. This represents a 3.56% decrease in their position. The transaction was disclosed in a document filed 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, CFO Michelle Chang sold 8,489 shares of the stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the transaction, the chief financial officer directly owned 30,467 shares of the company’s stock, valued at approximately $2,477,576.44. This represents a 21.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 144,329 shares of company stock worth $12,364,989 in the last quarter. 11.51% of the stock is owned by insiders.

Zoom Communications News Summary

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

  • Positive Sentiment: Zoom beat Wall Street expectations, posting $1.55 EPS versus the $1.41 consensus and revenue of $1.24 billion versus estimates of $1.22 billion, signaling continued profitability and steady demand for its video communications platform. View Press Release
  • Positive Sentiment: Benchmark raised its price target on Zoom from $115 to $121 and maintained a buy rating, reinforcing optimism around the company’s growth and valuation. Read More
  • Neutral Sentiment: Several pre-earnings pieces highlighted bullish analyst sentiment and expectations for the quarter, which may have already been priced into the stock ahead of the report. Zoom Communications Q1 2027 earnings preview: Analyst sentiment bullish
  • Neutral Sentiment: Citizens JMP reiterated a market perform rating, suggesting a more cautious view that may be limiting upside despite the earnings beat. Read More

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Advocate Investing Services LLC acquired a new position in Zoom Communications in the 4th quarter valued at $26,000. Strive Financial Group LLC acquired a new position in Zoom Communications in the 4th quarter valued at $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its stake in Zoom Communications by 83.3% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company’s stock valued at $38,000 after purchasing an additional 200 shares during the last quarter. Triumph Capital Management acquired a new position in Zoom Communications in the 3rd quarter valued at $50,000. Finally, UMB Bank n.a. raised its stake in Zoom Communications by 1,626.3% in the 4th quarter. UMB Bank n.a. now owns 656 shares of the company’s stock valued at $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.

About Zoom Communications

(Get 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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Earnings History and Estimates for Zoom Communications (NASDAQ:ZM)

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