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

Zoom Communications (NASDAQ:ZM) updated its FY 2027 earnings guidance on Tuesday. 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.

Analyst Ratings Changes

Several research analysts recently issued reports on ZM shares. Bank of America began coverage on shares of Zoom Communications in a report on Wednesday, August 19th. They set a “buy” rating and a $130.00 price target for the company. Piper Sandler raised their price target on Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a research report on Friday, May 22nd. Mizuho boosted their price target on Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a report on Friday, May 22nd. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Wednesday. Finally, Citigroup lifted their price objective on Zoom Communications from $122.00 to $126.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $112.55.

Zoom Communications Stock Performance

ZM opened at $93.83 on Thursday. Zoom Communications has a 1 year low of $70.70 and a 1 year high of $114.74. The firm has a 50 day moving average price of $94.13 and a 200 day moving average price of $91.33. The company has a market cap of $27.51 billion, a PE ratio of 8.69, a price-to-earnings-growth ratio of 5.45 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 11.31%. The firm had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same period in the previous year, the company posted $1.53 earnings per share. Zoom Communications’s revenue was up 4.9% compared to the same quarter last year. 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. On average, sell-side analysts predict that Zoom Communications will post 4.11 earnings per share for the current year.

Insider Buying and Selling at Zoom Communications

In related news, Director Santiago Subotovsky sold 7,911 shares of Zoom Communications stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total transaction of $801,621.63. Following the transaction, the director owned 127,060 shares in the company, valued at approximately $12,874,989.80. The trade was a 5.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 12,100 shares of the company’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $100.17, for a total transaction of $1,212,057.00. Following the sale, the chief executive officer directly owned 22,998 shares of the company’s stock, valued at approximately $2,303,709.66. This trade represents a 34.47% 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 quarter, insiders sold 56,155 shares of company stock worth $5,654,761. 8.83% of the stock is currently owned by insiders.

Zoom Communications News Summary

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

• Positive Sentiment: Zoom reported fiscal Q2 revenue of $1.28 billion, up 4.9% year over year and ahead of the $1.27 billion consensus estimate. Adjusted EPS of $1.55 also exceeded expectations of about $1.48, while enterprise revenue rose 7.8% to $787.5 million. Zoom Communications Reports Financial Results
• Positive Sentiment: The company raised its fiscal 2027 outlook, including EPS guidance of $6.08-$6.12, above the approximately $5.71 analyst consensus. Record contact-center bookings, large customer wins and AI-powered deals point to improving enterprise momentum. Zoom Q2 Earnings Call Highlights
• Positive Sentiment: Analyst sentiment remains mixed but includes bullish calls: Needham reaffirmed a Buy rating with a $130 price target, while a Seeking Alpha analysis upgraded ZM to Buy. The latter cited Zoom’s strong cash position, 24.6% GAAP operating margin and potential value from its stake in AI company Anthropic if an anticipated IPO occurs. Zoom: The Anthropic IPO May Be Coming
• Neutral Sentiment: RBC and other analysts see longer-term potential from enterprise demand, AI-enabled products and broader adoption of Zoom’s platform, but describe these opportunities as dependent on continued execution rather than immediate earnings acceleration. Zoom to Gain From AI and Enterprise Growth
• Negative Sentiment: Fiscal Q3 adjusted EPS guidance of $1.46-$1.48 came in below Wall Street expectations. The softer outlook, attributed partly to competition and slower online/consumer growth, overshadowed the Q2 earnings beat and caused shares to decline. Zoom Forecasts Quarterly Profit Below Estimates

Institutional Trading of Zoom Communications

A number of hedge funds and other institutional investors have recently modified their holdings of ZM. NewEdge Advisors LLC boosted its holdings in shares of Zoom Communications by 16.8% in the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company’s stock valued at $591,000 after acquiring an additional 1,153 shares in the last quarter. Intech Investment Management LLC raised its position in shares of Zoom Communications by 59.1% during the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company’s stock worth $1,238,000 after purchasing an additional 6,235 shares during the period. Geneos Wealth Management Inc. increased its stake in Zoom Communications by 82.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock worth $65,000 after purchasing an additional 397 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in Zoom Communications during the 2nd quarter worth about $217,000. Finally, Invesco Ltd. raised its holdings in Zoom Communications by 7.0% during the 2nd quarter. Invesco Ltd. now owns 730,207 shares of the company’s stock worth $56,942,000 after buying an additional 47,749 shares during the period. 66.54% of the stock is 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.