Research Analysts Offer Predictions for ZM Q2 Earnings

Zoom Video Communications, Inc. (NASDAQ:ZM - Free Report) - William Blair boosted their Q2 2026 earnings per share (EPS) estimates for Zoom Video Communications in a report released on Thursday, May 22nd. William Blair analyst A. Bhatia now forecasts that the company will earn $0.77 per share for the quarter, up from their previous forecast of $0.66. William Blair currently has a "Outperform" rating on the stock. The consensus estimate for Zoom Video Communications' current full-year earnings is $2.93 per share. William Blair also issued estimates for Zoom Video Communications' Q3 2026 earnings at $0.79 EPS, Q1 2027 earnings at $0.69 EPS, Q3 2027 earnings at $0.73 EPS and Q4 2027 earnings at $0.71 EPS.

Several other research firms have also weighed in on ZM. Cantor Fitzgerald reissued a "neutral" rating and issued a $87.00 target price on shares of Zoom Video Communications in a report on Thursday, May 22nd. Wells Fargo & Company increased their price objective on Zoom Video Communications from $75.00 to $80.00 and gave the company an "equal weight" rating in a research note on Thursday, May 22nd. Royal Bank of Canada reaffirmed an "outperform" rating and set a $95.00 price objective on shares of Zoom Video Communications in a research note on Thursday, May 22nd. JMP Securities reaffirmed a "market perform" rating on shares of Zoom Video Communications in a research note on Thursday, May 22nd. Finally, Wall Street Zen raised Zoom Video Communications from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Fifteen equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, Zoom Video Communications has an average rating of "Moderate Buy" and a consensus target price of $87.61.

Zoom Video Communications Price Performance

Zoom Video Communications stock traded up $0.77 during trading hours on Monday, hitting $79.67. The stock had a trading volume of 2,479,499 shares, compared to its average volume of 2,981,961. The stock has a market capitalization of $24.32 billion, a price-to-earnings ratio of 26.56, a PEG ratio of 5.48 and a beta of 0.79. Zoom Video Communications has a 1-year low of $55.06 and a 1-year high of $92.80. The stock's fifty day moving average is $76.12 and its two-hundred day moving average is $79.74.

Zoom Video Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Wednesday, May 21st. The company reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.30 by $0.13. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.17 billion. Zoom Video Communications had a return on equity of 10.98% and a net margin of 20.34%. Zoom Video Communications's revenue was up 2.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.35 earnings per share.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Swedbank AB grew its position in shares of Zoom Video Communications by 96.3% in the 4th quarter. Swedbank AB now owns 82,247 shares of the company's stock worth $6,712,000 after acquiring an additional 40,351 shares in the last quarter. Asset Management One Co. Ltd. grew its position in shares of Zoom Video Communications by 8.7% in the 4th quarter. Asset Management One Co. Ltd. now owns 93,872 shares of the company's stock worth $7,868,000 after acquiring an additional 7,518 shares in the last quarter. Caprock Group LLC acquired a new position in shares of Zoom Video Communications in the 4th quarter worth approximately $288,000. McAdam LLC acquired a new position in shares of Zoom Video Communications in the 4th quarter worth approximately $410,000. Finally, Proficio Capital Partners LLC acquired a new position in shares of Zoom Video Communications in the 4th quarter worth approximately $966,000. Institutional investors and hedge funds own 66.54% of the company's stock.

Insider Activity at Zoom Video Communications

In other Zoom Video Communications news, CEO Eric S. Yuan sold 75,531 shares of the firm's stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $74.98, for a total transaction of $5,663,314.38. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Santiago Subotovsky sold 2,475 shares of the firm's stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $77.86, for a total value of $192,703.50. Following the sale, the director now owns 169,452 shares of the company's stock, valued at approximately $13,193,532.72. This trade represents a 1.44% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 164,515 shares of company stock worth $12,132,994. 11.51% of the stock is currently owned by company insiders.

About Zoom Video Communications

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.