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

Key Points

• Zoom raised FY 2027 EPS guidance to $6.08–$6.12, above the $5.71 analyst consensus, while projecting revenue of approximately $5.1 billion, broadly in line with expectations. Q3 FY 2027 EPS guidance was set at $1.46–$1.48.
• Zoom’s latest quarterly results exceeded estimates, with EPS of $1.55 versus the $1.48 consensus and revenue of $1.28 billion versus $1.27 billion expected.
• Analyst sentiment remains cautiously positive: the stock has a “Moderate Buy” consensus rating and an average price target of $111.64, though concerns about customer churn and competitive pressures could temper optimism around its AI initiatives.

Zoom Communications (NASDAQ:ZM - Get Free Report) issued an update on its FY 2027 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 6.080-6.120 for the period, compared to the consensus earnings per share 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.

Zoom Communications Stock Performance

NASDAQ:ZM traded down $3.91 during midday trading on Tuesday, reaching $100.92. 6,415,414 shares of the stock traded hands, compared to its average volume of 4,117,635. The business has a 50-day moving average of $93.83 and a two-hundred day moving average of $91.23. Zoom Communications has a 12-month low of $70.70 and a 12-month high of $114.74. The stock has a market capitalization of $29.59 billion, a PE ratio of 14.82, a price-to-earnings-growth ratio of 5.67 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating analysts' consensus estimates of $1.48 by $0.07. The company had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.27 billion. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.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. Research analysts anticipate that Zoom Communications will post 4.21 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on ZM. Jefferies Financial Group raised their price objective on Zoom Communications from $105.00 to $118.00 and gave the company a "buy" rating in a report on Friday, May 22nd. Rosenblatt Securities reissued a "buy" rating and issued a $130.00 price target on shares of Zoom Communications in a research note on Friday. Weiss Ratings cut Zoom Communications from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, August 14th. KeyCorp upgraded Zoom Communications from an "underweight" rating to a "sector weight" rating in a report on Friday, May 22nd. Finally, HSBC raised their price objective on shares of Zoom Communications from $107.00 to $133.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $111.64.

Insider Transactions at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,644 shares of the company's stock in a transaction that occurred on Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total transaction of $703,095.12. Following the sale, the insider owned 148,403 shares in the company, valued at $13,650,107.94. This represents a 4.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available 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 business's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $100.17, for a total value of $1,212,057.00. Following the transaction, the chief executive officer owned 22,998 shares of the company's stock, valued at $2,303,709.66. This represents a 34.47% 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. Over the last quarter, insiders sold 56,155 shares of company stock valued at $5,654,761. 8.83% of the stock is currently owned by company insiders.

Key Headlines Impacting Zoom Communications

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

• Positive Sentiment: Analysts remain constructive ahead of earnings. Needham highlighted Zoom’s potential, while BTIG reaffirmed a Buy rating and set a $125 price target, implying meaningful upside from recent levels. Needham positive on Zoom ahead of Q2 results Zoom analyst forecasts ahead of earnings
• Positive Sentiment: Zoom’s AI initiatives are a key potential catalyst, with investors watching adoption of AI-powered products and the company’s reported investment in Anthropic. A continued streak of revenue beats could reinforce the view that Zoom is undervalued relative to its growth opportunities. Why Zoom results could put its AI push in focus Zoom is cheap ahead of Q2 earnings
• Neutral Sentiment: Cantor Fitzgerald maintained a Neutral rating with a $104 price target, suggesting limited near-term upside and a cautious stance ahead of the report. Cantor Fitzgerald rating update
• Neutral Sentiment: Zoom shares have been firm relative to their longer-term moving averages, while broader mid-cap strength may provide some market support. However, the earnings release is likely to dominate trading in the near term. Zoom steps forward as midcaps firm near records
• Negative Sentiment: Analysts are also warning that customer churn could offset AI-related optimism. Investors will focus on retention, enterprise demand, guidance and management’s explanation of competitive pressures. Zoom Q2 preview and customer churn caution

Hedge Funds Weigh In On Zoom Communications

Institutional investors have recently bought and sold shares of the stock. Virtu Financial LLC acquired a new stake in Zoom Communications during the 4th quarter worth about $554,000. Compound Planning Inc. lifted its stake in shares of Zoom Communications by 10.0% in the 4th quarter. Compound Planning Inc. now owns 7,940 shares of the company's stock valued at $685,000 after purchasing an additional 725 shares during the last quarter. Invesco Ltd. lifted its position in shares of Zoom Communications by 16.6% in the fourth quarter. Invesco Ltd. now owns 961,582 shares of the company's stock worth $82,975,000 after buying an additional 136,911 shares during the last quarter. Corient Private Wealth LLC boosted its position in Zoom Communications by 345.7% during the fourth quarter. Corient Private Wealth LLC now owns 245,879 shares of the company's stock worth $21,217,000 after purchasing an additional 190,713 shares during the period. Finally, Alpine Woods Capital Investors LLC grew its stake in Zoom Communications by 28.8% in the 4th quarter. Alpine Woods Capital Investors LLC now owns 19,327 shares of the company's stock valued at $1,668,000 after buying an additional 4,327 shares during the last quarter. 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.

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