Zoom Communications (NASDAQ:ZM) Issues Earnings Results

Posted by Geri Gentry on Aug 25th, 2026

Zoom Communications (NASDAQ:ZM – Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $1.55 EPS for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07, FiscalAI reports. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.27 billion.

Zoom Communications Trading Down 3.7%

Shares of NASDAQ:ZM traded down $3.91 on Tuesday, hitting $100.92. The company had a trading volume of 6,179,031 shares, compared to its average volume of 4,117,635. The stock has a market cap of $29.59 billion, a price-to-earnings ratio of 14.82, a P/E/G ratio of 5.67 and a beta of 1.00. The stock has a 50 day moving average price of $93.83 and a 200 day moving average price of $91.23. Zoom Communications has a 1-year low of $70.70 and a 1-year high of $114.74.

Key Headlines Impacting Zoom Communications

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

Positive Sentiment: Analysts remain constructive ahead of earnings. Needham highlighted Zoom’s potential, while BTIG reaffirmed a Buy rating and set a $125 price target, implying meaningful upside from recent levels. Needham positive on Zoom ahead of Q2 results Zoom analyst forecasts ahead of earnings
Positive Sentiment: Zoom’s AI initiatives are a key potential catalyst, with investors watching adoption of AI-powered products and the company’s reported investment in Anthropic. A continued streak of revenue beats could reinforce the view that Zoom is undervalued relative to its growth opportunities. Why Zoom results could put its AI push in focus Zoom is cheap ahead of Q2 earnings
Neutral Sentiment: Cantor Fitzgerald maintained a Neutral rating with a $104 price target, suggesting limited near-term upside and a cautious stance ahead of the report. Cantor Fitzgerald rating update
Neutral Sentiment: Zoom shares have been firm relative to their longer-term moving averages, while broader mid-cap strength may provide some market support. However, the earnings release is likely to dominate trading in the near term. Zoom steps forward as midcaps firm near records
Negative Sentiment: Analysts are also warning that customer churn could offset AI-related optimism. Investors will focus on retention, enterprise demand, guidance and management’s explanation of competitive pressures. Zoom Q2 preview and customer churn caution

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Royal Bank Of Canada restated an “outperform” rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Tuesday, June 30th. Piper Sandler lifted their price target on Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a report on Friday, May 22nd. Citizens Jmp reissued a “market perform” rating on shares of Zoom Communications in a research report on Wednesday, May 20th. KeyCorp raised Zoom Communications from an “underweight” rating to a “sector weight” rating in a research report on Friday, May 22nd. Finally, Benchmark upped their price objective on Zoom Communications from $115.00 to $121.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $111.64.

Check Out Our Latest Report on ZM

Insider Activity at Zoom Communications

In related news, Director Santiago Subotovsky sold 7,911 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total value of $801,621.63. Following the transaction, the director owned 127,060 shares in the company, valued at approximately $12,874,989.80. This represents a 5.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 dated Friday, July 10th. The shares were sold at an average price of $90.80, for a total transaction of $770,801.20. Following the completion of the transaction, the chief financial officer directly owned 35,452 shares in the company, valued at approximately $3,219,041.60. This represents a 19.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 56,155 shares of company stock worth $5,654,761. 8.83% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zoom Communications

A number of large investors have recently made changes to their positions in ZM. Virtu Financial LLC acquired a new stake in Zoom Communications during the 4th quarter worth approximately $554,000. Compound Planning Inc. grew its holdings in Zoom Communications by 10.0% in the 4th quarter. Compound Planning Inc. now owns 7,940 shares of the company’s stock valued at $685,000 after buying an additional 725 shares in the last quarter. Invesco Ltd. increased its position in Zoom Communications by 16.6% during the 4th quarter. Invesco Ltd. now owns 961,582 shares of the company’s stock worth $82,975,000 after buying an additional 136,911 shares during the period. Corient Private Wealth LLC increased its position in Zoom Communications by 345.7% during the 4th quarter. Corient Private Wealth LLC now owns 245,879 shares of the company’s stock worth $21,217,000 after buying an additional 190,713 shares during the period. Finally, Alpine Woods Capital Investors LLC lifted its holdings in shares of Zoom Communications by 28.8% during the fourth quarter. Alpine Woods Capital Investors LLC now owns 19,327 shares of the company’s stock worth $1,668,000 after buying an additional 4,327 shares in the last quarter. Institutional investors own 66.54% of the company’s stock.

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.