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

Key Points

• Zoom raised its FY 2027 outlook, guiding for EPS of 5.960 to 6.000, above the consensus estimate of 5.490. Revenue guidance was set at $5.1 billion, in line with Wall Street expectations.
• Quarterly results topped estimates in the company’s latest report, with EPS of $1.55 versus the $1.41 expected and revenue of $1.24 billion versus $1.22 billion forecast.
• The stock drew mixed reactions after the update: analysts remain largely cautious overall, but some firms reiterated bullish views and even raised price targets, while Zoom shares traded lower on the day of the announcement.

Zoom Communications (NASDAQ:ZM - Get Free Report) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 5.960-6.000 for the period, compared to the consensus estimate of 5.490. 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 Q2 2027 guidance to 1.450-1.470 EPS.

Zoom Communications Stock Performance

ZM traded down $2.67 on Thursday, hitting $96.75. The company had a trading volume of 8,481,520 shares, compared to its average volume of 4,376,646. The stock has a fifty day moving average price of $87.73 and a 200-day moving average price of $86.52. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $111.56. The stock has a market capitalization of $28.51 billion, a price-to-earnings ratio of 15.60, a P/E/G ratio of 5.57 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.41 by $0.14. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The company had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. 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. Analysts forecast that Zoom Communications will post 3.94 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

ZM has been the topic of several analyst reports. Needham & Company LLC reiterated a "buy" rating and issued a $100.00 target price on shares of Zoom Communications in a research note on Friday, March 13th. Sanford C. Bernstein cut their price objective on shares of Zoom Communications from $90.00 to $88.00 and set a "market perform" rating on the stock in a report on Thursday, February 26th. Wolfe Research raised shares of Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price objective for the company in a research report on Thursday, February 5th. Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 1st. Finally, Robert W. Baird increased their price objective on shares of Zoom Communications from $95.00 to $105.00 and gave the company an "outperform" rating in a research report on Tuesday. 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. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $97.57.

Insider Transactions at Zoom Communications

In related news, COO Aparna Bawa sold 12,886 shares of the company's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $87.62, for a total value of $1,129,071.32. Following the sale, the chief operating officer owned 1,978 shares in the company, valued at $173,312.36. This represents a 86.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of the stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total transaction of $653,188.80. Following the completion of the transaction, the insider owned 141,971 shares in the company, valued at approximately $12,130,002.24. This trade represents a 5.11% 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. Insiders sold a total of 144,329 shares of company stock worth $12,364,989 over the last ninety days. 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: Zoom beat Wall Street expectations, posting $1.55 EPS versus the $1.41 consensus and revenue of $1.24 billion versus estimates of $1.22 billion, signaling continued profitability and steady demand for its video communications platform. View Press Release
• Positive Sentiment: Benchmark raised its price target on Zoom from $115 to $121 and maintained a buy rating, reinforcing optimism around the company’s growth and valuation. Read More
• Neutral Sentiment: Several pre-earnings pieces highlighted bullish analyst sentiment and expectations for the quarter, which may have already been priced into the stock ahead of the report. Zoom Communications Q1 2027 earnings preview: Analyst sentiment bullish
• Neutral Sentiment: Citizens JMP reiterated a market perform rating, suggesting a more cautious view that may be limiting upside despite the earnings beat. Read More

Hedge Funds Weigh In On Zoom Communications

Several hedge funds and other institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC increased its holdings in Zoom Communications by 43.9% in the 4th quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company's stock worth $1,052,328,000 after buying an additional 3,718,186 shares during the period. State Street Corp increased its holdings in Zoom Communications by 5.0% in the 4th quarter. State Street Corp now owns 7,582,924 shares of the company's stock worth $654,331,000 after buying an additional 363,776 shares during the period. FIL Ltd increased its holdings in Zoom Communications by 0.4% in the 4th quarter. FIL Ltd now owns 3,284,861 shares of the company's stock worth $283,451,000 after buying an additional 11,849 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Zoom Communications by 9.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,852,621 shares of the company's stock worth $246,153,000 after buying an additional 248,640 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its holdings in Zoom Communications by 46.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company's stock worth $218,282,000 after buying an additional 836,594 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.