Zoom Communications (NASDAQ:ZM) Updates Q1 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 1.400-1.420 for the period, compared to the consensus EPS estimate of 0.860. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.2 billion. Zoom Communications also updated its FY 2027 guidance to 5.770-5.810 EPS.

Zoom Communications Price Performance

Shares of ZM stock traded down $11.43 on Thursday, hitting $74.00. 10,302,325 shares of the stock traded hands, compared to its average volume of 3,999,487. The company has a market capitalization of $21.91 billion, a PE ratio of 14.36, a PEG ratio of 7.84 and a beta of 0.90. Zoom Communications has a 1-year low of $64.41 and a 1-year high of $97.58. The company’s fifty day moving average is $88.22 and its 200 day moving average is $84.43.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.04). Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The business had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the prior year, the company earned $1.41 EPS. Zoom Communications’s quarterly revenue was up 5.3% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, equities research analysts expect that Zoom Communications will post 2.93 EPS for the current year.

Wall Street Analyst Weigh In

Several analysts recently weighed in on ZM shares. JPMorgan Chase & Co. lifted their price objective on shares of Zoom Communications from $85.00 to $90.00 and gave the company a “neutral” rating in a research report on Tuesday, November 25th. Citigroup upgraded Zoom Communications from a “neutral” rating to a “buy” rating and raised their target price for the company from $94.00 to $106.00 in a research report on Monday, January 12th. Royal Bank Of Canada reissued an “outperform” rating and issued a $100.00 price target on shares of Zoom Communications in a research note on Tuesday, November 25th. Zacks Research cut shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 13th. Finally, Wolfe Research raised Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 target price on the stock in a report on Thursday, February 5th. Fourteen investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $95.32.

Insider Transactions at Zoom Communications

In other news, COO Aparna Bawa sold 12,137 shares of the business’s stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $81.37, for a total value of $987,587.69. Following the sale, the chief operating officer directly owned 1,978 shares in the company, valued at $160,949.86. The trade was a 85.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Eric S. Yuan sold 73,378 shares of Zoom Communications stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $87.29, for a total value of $6,405,165.62. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 183,089 shares of company stock valued at $15,751,383. 11.51% of the stock is currently owned by insiders.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: Revenue and enterprise strength — Q4 revenue of ~$1.25B beat Street estimates and grew ~5.3% year‑over‑year; enterprise revenue and the count of customers >$100k both showed healthy gains, supporting longer‑term commercial traction. Q4 Results
• Positive Sentiment: New AI product — Zoom launched Zoom Virtual Agent 3.0, which management positions as a growth lever in automated customer service and AI-enabled collaboration that could expand enterprise spend over time. ZVA 3.0
• Positive Sentiment: Capital return completed — management completed a $2.7B share repurchase program, which reduces share count and can support EPS over time. Buyback Mention
• Neutral Sentiment: Analyst divergence — some firms (Rosenblatt, BTIG) maintain buy ratings and higher price targets while others (KeyCorp, Citizens Jmp) remain cautious or market‑perform; the split increases near‑term volatility and reflects mixed views on Zoom’s growth runway. Analyst Notes
• Negative Sentiment: EPS miss — non‑GAAP EPS of $1.44 came in slightly below consensus (~$1.48–$1.49), a driver of the immediate selloff as it signals pressure on near‑term profitability. Earnings Miss
• Negative Sentiment: Cautious profit guidance & competition — management’s quarterly profit outlook was viewed as below some Street estimates and Reuters notes intensifying competition (Microsoft Teams, Google Meet) that could cap pricing/market share gains. These are the main reasons for the downward move today. Guidance & Competition

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Advocate Investing Services LLC acquired a new position in Zoom Communications in the 4th quarter valued at $26,000. Strive Financial Group LLC acquired a new stake in shares of Zoom Communications during the fourth quarter worth $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted 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 acquiring an additional 200 shares during the period. Triumph Capital Management bought a new position in Zoom Communications during the third quarter worth about $50,000. Finally, UMB Bank n.a. raised its stake in Zoom Communications by 1,626.3% in the 4th quarter. UMB Bank n.a. now owns 656 shares of the company’s stock worth $57,000 after purchasing an additional 618 shares in the last quarter. 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.