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

Zoom Communications (NASDAQ:ZM) updated 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 EPS 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

A number of analysts have recently weighed in on the company. Rosenblatt Securities reissued a “buy” rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Friday. Morgan Stanley lifted their target price on shares of Zoom Communications from $92.00 to $105.00 and gave the stock an “equal weight” rating in a research note on Friday, May 22nd. Needham & Company LLC reiterated a “buy” rating and set a $130.00 price target on shares of Zoom Communications in a report on Thursday, July 2nd. UBS Group increased their price target on shares of Zoom Communications from $105.00 to $115.00 and gave the company a “neutral” rating in a research report on Thursday, August 20th. Finally, Mizuho raised their price target on shares of Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a report on Friday, May 22nd. Sixteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $111.64.

Zoom Communications Price Performance

NASDAQ:ZM traded down $3.91 during mid-day trading on Tuesday, hitting $100.92. 6,790,355 shares of the company’s stock were exchanged, compared to its average volume of 4,130,263. The business has a fifty day moving average price of $93.83 and a 200 day moving average price of $91.23. Zoom Communications has a one year low of $70.70 and a one year high of $114.74. The company has a market cap of $29.59 billion, a PE ratio of 14.82, a P/E/G ratio of 5.67 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last issued its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. 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, equities analysts forecast that Zoom Communications will post 4.21 EPS for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,644 shares of Zoom Communications stock in a transaction on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total transaction of $703,095.12. Following the transaction, the insider owned 148,403 shares in the company, valued at $13,650,107.94. This trade represents a 4.90% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the company’s stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $90.80, for a total value of $770,801.20. Following the completion of the sale, the chief financial officer owned 35,452 shares of the company’s stock, valued at approximately $3,219,041.60. The trade was a 19.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 56,155 shares of company stock valued at $5,654,761. 8.83% of the stock is owned by corporate insiders.

More Zoom Communications News

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

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ZM. Advocate Investing Services LLC bought a new position in Zoom Communications in the 4th quarter worth $26,000. Strive Financial Group LLC bought a new stake in Zoom Communications during the fourth quarter valued at about $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its holdings in Zoom Communications by 83.3% during the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company’s stock valued at $38,000 after acquiring an additional 200 shares during the period. Triumph Capital Management purchased a new position in shares of Zoom Communications in the third quarter valued at about $50,000. Finally, UMB Bank n.a. lifted its position in shares of Zoom Communications by 1,626.3% in the fourth quarter. UMB Bank n.a. now owns 656 shares of the company’s stock valued at $57,000 after acquiring an additional 618 shares in the last quarter. Hedge funds and other 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.