Zoom Communications (NASDAQ:ZM – Get Free Report) issued its quarterly earnings data on Thursday. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.41 by $0.14, FiscalAI reports. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. Zoom Communications updated its FY 2027 guidance to 5.960-6.000 EPS and its Q2 2027 guidance to 1.450-1.470 EPS.
Zoom Communications Stock Performance
ZM traded down $2.67 during trading on Thursday, reaching $96.75. The stock had a trading volume of 8,481,520 shares, compared to its average volume of 4,376,646. The business has a 50-day moving average of $87.73 and a 200-day moving average of $86.52. Zoom Communications has a one year low of $69.15 and a one year high of $111.56. The stock has a market cap of $28.51 billion, a PE ratio of 15.60, a PEG ratio of 5.57 and a beta of 1.00.
Insider Activity
In other news, CFO Michelle Chang sold 8,489 shares of the firm’s stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $81.32, for a total transaction of $690,325.48. Following the transaction, the chief financial officer directly owned 30,467 shares of the company’s stock, valued at approximately $2,477,576.44. This trade represents a 21.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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. Also, insider Velchamy Sankarlingam sold 7,645 shares of the firm’s stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $85.44, for a total value of $653,188.80. Following the transaction, the insider directly owned 141,971 shares in the company, valued at $12,130,002.24. This trade represents a 5.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 144,329 shares of company stock valued at $12,364,989. Company insiders own 11.51% of the company’s stock.
Institutional Inflows and Outflows
Analyst Upgrades and Downgrades
ZM has been the topic of a number of research analyst reports. Robert W. Baird increased their target price on Zoom Communications from $95.00 to $105.00 and gave the company an “outperform” rating in a research note on Tuesday. Rosenblatt Securities reissued a “buy” rating and issued a $115.00 target price on shares of Zoom Communications in a research note on Thursday, February 26th. Weiss Ratings raised Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 1st. Citizens Jmp reissued a “market perform” rating on shares of Zoom Communications in a research note on Wednesday. Finally, Argus raised Zoom Communications to a “hold” rating in a research note on Monday, March 9th. Fourteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $97.57.
Get Our Latest Stock Report on Zoom Communications
Key Stories Impacting Zoom Communications
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
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.
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