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

Key Points

• Zoom Communications raised its Q2 2027 outlook, guiding for EPS of 1.450-1.470 versus the consensus estimate of 0.920. It also reiterated revenue guidance of about $1.3 billion.
• Full-year FY 2027 EPS guidance was updated to 5.960-6.000, suggesting management expects continued profitability beyond the current quarter.
• The company recently beat Q1 expectations, reporting EPS of $1.55 and revenue of $1.24 billion, both above analyst estimates. Despite that, the stock traded lower on the day the guidance was released.

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

Zoom Communications Price Performance

Shares of NASDAQ ZM traded down $2.67 during mid-day trading 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 market cap of $28.51 billion, a price-to-earnings ratio of 15.60, a PEG ratio of 5.57 and a beta of 1.00. Zoom Communications has a 12 month low of $69.15 and a 12 month high of $111.56. The firm's 50 day simple moving average is $87.73 and its two-hundred day simple moving average is $86.52.

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

Analysts Set New Price Targets

ZM has been the topic of several recent research reports. Robert W. Baird raised their price target on Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a report on Tuesday. Needham & Company LLC reaffirmed a "buy" rating and set a $100.00 target price on shares of Zoom Communications in a research note on Friday, March 13th. Wall Street Zen downgraded Zoom Communications from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. BTIG Research cut their target price on Zoom Communications from $105.00 to $100.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. Finally, Benchmark lifted their target price on Zoom Communications from $115.00 to $121.00 and gave the company a "buy" rating in a research note on Thursday. Fourteen research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $97.57.

Insider Activity

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of Zoom Communications stock in a transaction 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 sale, the insider owned 141,971 shares of the company's stock, valued at $12,130,002.24. The trade was a 5.11% decrease in their position. The sale was disclosed in a legal 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, COO Aparna Bawa sold 12,886 shares of Zoom Communications stock in a transaction on Friday, April 17th. The shares were sold at an average price of $87.62, for a total value of $1,129,071.32. Following the sale, the chief operating officer directly owned 1,978 shares in the company, valued at $173,312.36. The trade was a 86.69% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 144,329 shares of company stock worth $12,364,989 over the last ninety days. 11.51% of the stock is currently owned by company insiders.

Zoom Communications News Summary

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

Institutional Trading of Zoom Communications

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Kestra Advisory Services LLC raised its stake in shares of Zoom Communications by 2.0% in the 4th quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company's stock worth $512,000 after buying an additional 116 shares in the last quarter. Daiwa Securities Group Inc. raised its stake in shares of Zoom Communications by 0.7% in the 2nd quarter. Daiwa Securities Group Inc. now owns 24,395 shares of the company's stock worth $1,902,000 after buying an additional 181 shares in the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its stake in shares of Zoom Communications by 83.3% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock worth $38,000 after buying an additional 200 shares in the last quarter. Principal Securities Inc. raised its stake in shares of Zoom Communications by 8.1% in the 4th quarter. Principal Securities Inc. now owns 3,053 shares of the company's stock worth $263,000 after buying an additional 230 shares in the last quarter. Finally, Utah Retirement Systems raised its stake in shares of Zoom Communications by 0.6% in the 4th quarter. Utah Retirement Systems now owns 43,622 shares of the company's stock worth $3,764,000 after buying an additional 245 shares in the last quarter. Institutional investors own 66.54% of the company's stock.

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.

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