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

by · The Cerbat Gem

Zoom Communications (NASDAQ:ZM – Get Free Report) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 5.770-5.810 for the period, compared to the consensus estimate of 3.690. The company issued revenue guidance of $5.1 billion-$5.1 billion, compared to the consensus revenue estimate of $5.0 billion. Zoom Communications also updated its Q1 2027 guidance to 1.400-1.420 EPS.

Zoom Communications Stock Performance

NASDAQ:ZM traded down $2.08 during mid-day trading on Wednesday, reaching $85.43. The stock had a trading volume of 6,835,231 shares, compared to its average volume of 3,835,698. Zoom Communications has a twelve month low of $64.41 and a twelve month high of $97.58. The business has a 50 day simple moving average of $88.29 and a 200 day simple moving average of $84.42. The firm has a market capitalization of $25.30 billion, a price-to-earnings ratio of 16.62, a PEG ratio of 7.71 and a beta of 0.90.

Zoom Communications (NASDAQ:ZM – Get Free Report) last issued its earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The business had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.21 billion. Zoom Communications had a return on equity of 12.20% and a net margin of 33.17%.The company’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same period in the prior year, the business posted $1.38 EPS. As a group, sell-side analysts expect that Zoom Communications will post 2.93 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on ZM shares. Royal Bank Of Canada reiterated an “outperform” rating and issued a $100.00 price objective on shares of Zoom Communications in a research report on Tuesday, November 25th. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a report on Tuesday. Rosenblatt Securities reiterated a “buy” rating and issued a $115.00 price objective on shares of Zoom Communications in a research note on Tuesday, November 25th. Wedbush reissued an “outperform” rating and set a $95.00 price objective on shares of Zoom Communications in a report on Tuesday, November 25th. Finally, Citigroup raised shares of Zoom Communications from a “neutral” rating to a “buy” rating and increased their target price for the company from $94.00 to $106.00 in a report on Monday, January 12th. Fourteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Zoom Communications presently has an average rating of “Hold” and an average price target of $94.74.

Check Out Our Latest Research Report on Zoom Communications

Insider Activity at Zoom Communications

In related news, Director Santiago Subotovsky sold 2,475 shares of Zoom Communications stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $90.39, for a total transaction of $223,715.25. Following the completion of the transaction, the director directly owned 155,917 shares in the company, valued at $14,093,337.63. The trade was a 1.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Aparna Bawa sold 12,137 shares of the company’s stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $81.37, for a total value of $987,587.69. Following the completion of the sale, the chief operating officer directly owned 1,978 shares in the company, valued at approximately $160,949.86. The trade was a 85.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 183,089 shares of company stock valued at $15,751,383 in the last quarter. 10.78% of the stock is owned by corporate insiders.

Zoom Communications News Roundup

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

  • Positive Sentiment: Enterprise strength and large-customer traction: Enterprise revenue rose 7.1% YoY to $757.3M and the number of customers contributing >$100k in trailing 12-month revenue grew ~9.3% YoY, showing resilience in the high-value segment — a structural positive for durable revenue. Zoom Q4 Report
  • Positive Sentiment: Product push to diversify revenue: Zoom introduced Zoom Virtual Agent 3.0 to expand automation and customer-service offerings, which could boost monetization outside the core meetings product over time. ZVA 3.0 Release
  • Neutral Sentiment: Revenue modestly above expectations: Q4 total revenue was $1.247B, up ~5% YoY and slightly above Street estimates, and management guided Q1 revenue roughly $1.22B (near analyst forecasts) — revenue growth is steady but not accelerating. Earnings Snapshot
  • Neutral Sentiment: Analyst reactions mixed: Some firms reaffirmed market-perform / neutral ratings ahead of or after the print; expectations vary, so follow-through analyst revisions could drive more moves. Analyst Notes
  • Negative Sentiment: Earnings miss: Non-GAAP EPS of $1.44 missed the Zacks/Street consensus (~$1.48), which pressured the stock. Q4 Results
  • Negative Sentiment: Profit guidance and competitive pressure disappointing: Multiple outlets report management’s profit guidance and commentary came in below some Street expectations and highlighted intense competition from Microsoft Teams and Google Meet plus a weak consumer/small-business segment — a catalyst for downside. Reuters Guidance Report

Hedge Funds Weigh In On Zoom Communications

Several institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC grew its holdings in Zoom Communications by 43.9% in the 4th quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock valued at $1,052,328,000 after buying an additional 3,718,186 shares during the period. State Street Corp lifted its holdings in shares of Zoom Communications by 5.0% during the 4th quarter. State Street Corp now owns 7,582,924 shares of the company’s stock worth $654,331,000 after acquiring an additional 363,776 shares during the period. FIL Ltd boosted its position in shares of Zoom Communications by 0.4% in the fourth quarter. FIL Ltd now owns 3,284,861 shares of the company’s stock worth $283,451,000 after acquiring an additional 11,849 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Zoom Communications by 9.5% in the fourth 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 purchasing an additional 248,640 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its position in Zoom Communications by 46.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company’s stock worth $218,282,000 after purchasing an additional 836,594 shares during the last quarter. 66.54% of the stock is currently owned by institutional investors and hedge funds.

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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