Zoom Communications (NASDAQ:ZM) Issues Q2 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM – Get Free Report) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 1.450-1.470 for the period, compared to the consensus EPS estimate of 0.920. The company issued revenue guidance of $1.3 billion-$1.3 billion, compared to the consensus revenue estimate of $1.3 billion. Zoom Communications also updated its FY 2027 guidance to 5.960-6.000 EPS.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM traded down $2.67 during midday trading on Thursday, reaching $96.75. 8,793,883 shares of the company’s stock traded hands, compared to its average volume of 4,392,455. The company has a market cap 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 has a one year low of $69.15 and a one year high of $111.56. The stock has a 50 day moving average of $87.73 and a 200 day moving average of $86.52.

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Zoom Communications (NASDAQ:ZM – Get Free Report) last announced its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.14. The firm had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.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. Sell-side analysts predict that Zoom Communications will post 3.94 EPS for the current fiscal year.

Analyst Ratings Changes

ZM has been the topic of a number of research analyst reports. Citigroup upped their price target on Zoom Communications from $106.00 to $122.00 and gave the company a “buy” rating in a report on Friday, May 15th. Wolfe Research raised Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 target price on the stock in a report on Thursday, February 5th. Rosenblatt Securities reissued a “buy” rating and issued a $115.00 target price on shares of Zoom Communications in a report on Thursday, February 26th. KeyCorp increased their target price on Zoom Communications from $69.00 to $74.00 and gave the company an “underweight” rating in a report on Thursday, February 26th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $100.00 target price on shares of Zoom Communications in a report on Friday, March 13th. Fourteen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Zoom Communications has a consensus rating of “Hold” and a consensus price target of $97.57.

Read Our Latest Stock Report on ZM

Insider Activity

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total transaction of $653,188.80. Following the completion of the sale, the insider owned 141,971 shares in the company, valued at approximately $12,130,002.24. This trade represents a 5.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 12,100 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $106.60, for a total value of $1,289,860.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 144,329 shares of company stock valued at $12,364,989 in the last three months. 11.51% of the stock is currently owned by insiders.

Key Zoom Communications News

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

Hedge Funds Weigh In On Zoom Communications

Several institutional investors have recently added to or reduced their stakes in the company. Virtu Financial LLC purchased a new position in Zoom Communications during the 4th quarter valued at approximately $554,000. Compound Planning Inc. boosted its holdings in shares of Zoom Communications by 10.0% in the 4th quarter. Compound Planning Inc. now owns 7,940 shares of the company’s stock worth $685,000 after purchasing an additional 725 shares during the period. Invesco Ltd. boosted its holdings in shares of Zoom Communications by 16.6% in the 4th quarter. Invesco Ltd. now owns 961,582 shares of the company’s stock worth $82,975,000 after purchasing an additional 136,911 shares during the period. Corient Private Wealth LLC boosted its holdings in shares of Zoom Communications by 345.7% in the 4th quarter. Corient Private Wealth LLC now owns 245,879 shares of the company’s stock worth $21,217,000 after purchasing an additional 190,713 shares during the period. Finally, Alpine Woods Capital Investors LLC boosted its holdings in shares of Zoom Communications by 28.8% in the 4th quarter. Alpine Woods Capital Investors LLC now owns 19,327 shares of the company’s stock worth $1,668,000 after purchasing an additional 4,327 shares during the period. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Zoom Communications Company Profile

(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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