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

Zoom Communications (NASDAQ:ZM) updated its second quarter 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 1.450-1.470 for the period, compared to the consensus earnings per share 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.

Analyst Ratings Changes

A number of research firms have recently commented on ZM. Rosenblatt Securities reissued a “buy” rating and issued a $115.00 price objective on shares of Zoom Communications in a research note on Thursday, February 26th. Sanford C. Bernstein dropped their price objective on Zoom Communications from $90.00 to $88.00 and set a “market perform” rating on the stock in a research note on Thursday, February 26th. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a report on Wednesday. Argus upgraded Zoom Communications to a “hold” rating in a report on Monday, March 9th. Finally, Citigroup lifted their target price on Zoom Communications from $106.00 to $122.00 and gave the stock a “buy” rating in a report on Friday, May 15th. Fourteen investment 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. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $97.57.

Zoom Communications Trading Down 2.7%

Shares of NASDAQ ZM traded down $2.67 during mid-day trading on Thursday, reaching $96.75. The company had a trading volume of 8,481,520 shares, compared to its average volume of 4,376,646. The stock has a market cap of $28.51 billion, a PE ratio of 15.60, a P/E/G ratio of 5.57 and a beta of 1.00. The company has a 50-day moving average price of $87.73 and a two-hundred day moving average price of $86.52. Zoom Communications has a 1-year low of $69.15 and a 1-year high of $111.56.

Zoom Communications (NASDAQ:ZM) last issued its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.41 by $0.14. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. 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. On average, research analysts expect that Zoom Communications will post 3.94 EPS for the current year.

Insider Buying and Selling at Zoom Communications

In other news, COO Aparna Bawa sold 12,886 shares of Zoom Communications stock in a transaction on Friday, April 17th. The stock was sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer owned 1,978 shares in the company, valued at approximately $173,312.36. The trade was a 86.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of Zoom Communications stock in a transaction on Monday, April 13th. The shares were sold at an average price of $81.22, for a total value of $5,679,146.06. Following the transaction, the chief executive officer owned 36,796 shares in the company, valued at $2,988,571.12. This represents a 65.52% decrease in their position. 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 ninety days. Company insiders own 11.51% of the company’s stock.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Sivia Capital Partners LLC acquired a new stake in shares of Zoom Communications in the second quarter worth about $217,000. Steward Partners Investment Advisory LLC boosted its stake in shares of Zoom Communications by 89.7% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 1,417 shares of the company’s stock worth $122,000 after acquiring an additional 670 shares in the last quarter. CIBC Private Wealth Group LLC boosted its stake in shares of Zoom Communications by 45.1% during the 4th quarter. CIBC Private Wealth Group LLC now owns 885 shares of the company’s stock worth $76,000 after acquiring an additional 275 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in shares of Zoom Communications during the 4th quarter worth about $101,000. Finally, Advisory Services Network LLC bought a new stake in shares of Zoom Communications during the 3rd quarter worth about $145,000. Hedge funds and other institutional investors own 66.54% of the company’s stock.

About Zoom Communications

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.