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

Zoom Communications (NASDAQ:ZM) updated its FY 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 6.080-6.120 for the period, compared to the consensus estimate of 5.710. 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 Q3 2027 guidance to 1.460-1.480 EPS.

Zoom Communications Price Performance

Shares of ZM stock traded down $3.91 during trading hours on Tuesday, hitting $100.92. 6,415,414 shares of the company’s stock were exchanged, compared to its average volume of 4,117,635. Zoom Communications has a 52 week low of $70.70 and a 52 week high of $114.74. The stock has a market cap of $29.59 billion, a price-to-earnings ratio of 14.82, a price-to-earnings-growth ratio of 5.67 and a beta of 1.00. The stock’s 50-day moving average is $93.83 and its 200-day moving average is $91.23.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. Equities research analysts forecast that Zoom Communications will post 4.21 earnings per share for the current fiscal year.

Analysts Set New Price Targets

ZM has been the subject of several recent analyst reports. Piper Sandler upped their price objective on shares of Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a research report on Friday, May 22nd. Weiss Ratings cut Zoom Communications from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, August 14th. Citizens Jmp reissued a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Cantor Fitzgerald restated a “neutral” rating and issued a $104.00 target price on shares of Zoom Communications in a report on Monday. Finally, Jefferies Financial Group increased their target price on shares of Zoom Communications from $105.00 to $118.00 and gave the company a “buy” rating in a research report on Friday, May 22nd. Sixteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Zoom Communications has a consensus rating of “Moderate Buy” and a consensus target price of $111.64.

Insider Transactions at Zoom Communications

In other news, CFO Michelle Chang sold 8,489 shares of the stock in a transaction on Friday, July 10th. The shares were sold at an average price of $90.80, for a total value of $770,801.20. Following the completion of the sale, the chief financial officer directly owned 35,452 shares of the company’s stock, valued at $3,219,041.60. This represents a 19.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at 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, Director Santiago Subotovsky sold 7,911 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total transaction of $801,621.63. Following the completion of the transaction, the director directly owned 127,060 shares of the company’s stock, valued at approximately $12,874,989.80. The trade was a 5.86% decrease in their position. 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. Over the last three months, insiders sold 56,155 shares of company stock valued at $5,654,761. Company insiders own 8.83% of the company’s stock.

Trending Headlines about 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

Institutional Trading of Zoom Communications

A number of large investors have recently made changes to their positions in ZM. Advocate Investing Services LLC acquired a new stake in shares of Zoom Communications during the fourth quarter worth about $26,000. Strive Financial Group LLC acquired a new position in Zoom Communications during the fourth quarter worth $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its position in shares of Zoom Communications by 83.3% in the fourth 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 about $50,000. Finally, UMB Bank n.a. grew its position in shares of Zoom Communications by 1,626.3% in the fourth 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 period. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

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.