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

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

Analysts Set New Price Targets

A number of analysts have issued reports on the stock. KeyCorp upgraded shares of Zoom Communications from an “underweight” rating to a “sector weight” rating in a research note on Friday. Argus upgraded shares of Zoom Communications to a “hold” rating in a research note on Monday, March 9th. Rosenblatt Securities reiterated a “buy” rating and set a $115.00 price target on shares of Zoom Communications in a research note on Thursday, February 26th. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $118.00 price target on shares of Zoom Communications in a research note on Friday. Fourteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $102.65.

Zoom Communications Stock Performance

Shares of Zoom Communications stock opened at $96.75 on Friday. Zoom Communications has a one year low of $69.15 and a one year high of $111.56. The company has a market cap of $28.51 billion, a PE ratio of 15.60, a P/E/G ratio of 5.69 and a beta of 1.00. The business has a 50-day simple moving average of $88.14 and a 200-day simple moving average of $86.59.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Thursday, May 21st. The company reported $1.55 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 during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the company posted $1.43 earnings per share. The business’s revenue for the quarter was up 5.5% on a year-over-year basis. 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, sell-side analysts predict that Zoom Communications will post 3.94 earnings per share for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In related news, CEO Eric S. Yuan sold 69,923 shares of the company’s stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $81.22, for a total value of $5,679,146.06. Following the completion of the transaction, the chief executive officer directly owned 36,796 shares of the company’s stock, valued at $2,988,571.12. This represents a 65.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 5,274 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $106.58, for a total value of $562,102.92. Following the completion of the transaction, the director directly owned 142,882 shares of the company’s stock, valued at $15,228,363.56. This trade represents a 3.56% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 144,329 shares of company stock valued at $12,364,989. 11.51% of the stock is currently owned by company insiders.

Key Zoom Communications News

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

• Positive Sentiment: Zoom reported first-quarter EPS of $1.55, ahead of consensus, and revenue of about $1.24 billion, also topping estimates, suggesting demand held up better than expected. Zoom Communications (ZM) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Zoom raised full-year and next-quarter guidance, signaling management confidence that AI features and enterprise demand can support further growth and profitability. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Enterprise revenue rose 7.2% year over year, and the enterprise net dollar expansion rate improved to 99%, indicating healthier customer retention and cross-sell momentum. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …
• Neutral Sentiment: Several previews and earnings recap articles focused on the same results, reinforcing the market’s attention on the quarter rather than introducing new catalysts. Zoom (ZM) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Management noted ongoing competitive pressure and a slight uptick in churn, which could limit how much upside investors assign to the growth story. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Virtu Financial LLC acquired a new position in Zoom Communications in the fourth quarter valued at approximately $554,000. Compound Planning Inc. boosted its holdings in Zoom Communications by 10.0% in the fourth quarter. Compound Planning Inc. now owns 7,940 shares of the company’s stock valued at $685,000 after purchasing an additional 725 shares in the last quarter. Invesco Ltd. boosted its holdings in Zoom Communications by 16.6% in the fourth quarter. Invesco Ltd. now owns 961,582 shares of the company’s stock valued at $82,975,000 after purchasing an additional 136,911 shares in the last quarter. Corient Private Wealth LLC boosted its holdings in Zoom Communications by 345.7% in the fourth quarter. Corient Private Wealth LLC now owns 245,879 shares of the company’s stock valued at $21,217,000 after purchasing an additional 190,713 shares in the last quarter. Finally, Alpine Woods Capital Investors LLC boosted its holdings in Zoom Communications by 28.8% in the fourth quarter. Alpine Woods Capital Investors LLC now owns 19,327 shares of the company’s stock valued at $1,668,000 after purchasing an additional 4,327 shares in the last quarter. 66.54% of the stock is owned by institutional investors and hedge funds.

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.