Zoom Communications (NASDAQ:ZM) Releases FY 2026 Earnings Guidance

Zoom Communications (NASDAQ:ZM) issued an update on its FY 2026 earnings guidance on Monday morning. The company provided earnings per share guidance of 5.950-5.970 for the period, compared to the consensus earnings per share estimate of 4.980. The company issued revenue guidance of $4.9 billion-$4.9 billion, compared to the consensus revenue estimate of $4.8 billion. Zoom Communications also updated its Q4 2026 guidance to 1.480-1.490 EPS.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM traded down $0.03 during midday trading on Monday, reaching $78.60. The company’s stock had a trading volume of 9,641,747 shares, compared to its average volume of 2,788,529. Zoom Communications has a fifty-two week low of $64.41 and a fifty-two week high of $92.80. The firm has a 50 day moving average price of $82.71 and a two-hundred day moving average price of $79.67. The firm has a market capitalization of $23.78 billion, a price-to-earnings ratio of 20.74, a PEG ratio of 10.73 and a beta of 0.79.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Monday, November 24th. The company reported $1.52 earnings per share for the quarter, beating the consensus estimate of $1.43 by $0.09. The firm had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.21 billion. Zoom Communications had a net margin of 24.99% and a return on equity of 11.91%. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS. Q4 2026 guidance at 1.480-1.490 EPS. As a group, research analysts anticipate that Zoom Communications will post 2.93 earnings per share for the current year.

Analysts Set New Price Targets

ZM has been the subject of a number of recent analyst reports. Zacks Research downgraded shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Monday, November 10th. Stifel Nicolaus lifted their price target on Zoom Communications from $80.00 to $90.00 and gave the stock a “hold” rating in a report on Thursday, September 18th. Robert W. Baird cut their price objective on Zoom Communications from $100.00 to $95.00 and set an “outperform” rating on the stock in a research report on Friday, August 22nd. KeyCorp decreased their target price on Zoom Communications from $73.00 to $69.00 and set an “underweight” rating for the company in a research report on Friday, August 22nd. Finally, JMP Securities reissued a “market perform” rating on shares of Zoom Communications in a report on Thursday, September 18th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $92.35.

Insider Activity at Zoom Communications

In other news, Director Santiago Subotovsky sold 2,475 shares of the stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $84.15, for a total value of $208,271.25. Following the sale, the director directly owned 150,169 shares of the company’s stock, valued at approximately $12,636,721.35. This represents a 1.62% 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. Also, insider Velchamy Sankarlingam sold 7,660 shares of the firm’s stock in a transaction that occurred on Friday, October 10th. The shares were sold at an average price of $82.00, for a total transaction of $628,120.00. Following the completion of the transaction, the insider owned 132,795 shares of the company’s stock, valued at $10,889,190. This trade represents a 5.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 391,848 shares of company stock worth $32,508,712 in the last ninety days. Insiders own 10.78% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ZM. Triumph Capital Management purchased a new stake in shares of Zoom Communications in the third quarter worth $50,000. Geneos Wealth Management Inc. raised its holdings in shares of Zoom Communications by 82.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after acquiring an additional 397 shares in the last quarter. Advisory Services Network LLC purchased a new stake in shares of Zoom Communications in the 3rd quarter valued at about $145,000. Employees Retirement System of Texas boosted its position in shares of Zoom Communications by 55.7% during the 3rd quarter. Employees Retirement System of Texas now owns 2,355 shares of the company’s stock valued at $194,000 after acquiring an additional 842 shares during the last quarter. Finally, Sender Co & Partners Inc. purchased a new position in shares of Zoom Communications during the second quarter worth about $203,000. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.