Zoom Communications (NASDAQ:ZM) Issues Q3 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM) updated its third quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 1.460-1.480 for the period, compared to the consensus EPS estimate of 0.910. 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 6.080-6.120 EPS.

Zoom Communications Stock Down 7.0%

Shares of Zoom Communications stock opened at $93.83 on Thursday. Zoom Communications has a twelve month low of $70.70 and a twelve month high of $114.74. The company’s 50 day moving average is $94.13 and its 200 day moving average is $91.33. The company has a market cap of $27.51 billion, a price-to-earnings ratio of 8.69, a price-to-earnings-growth ratio of 5.45 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a return on equity of 11.31% and a net margin of 65.19%.The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the prior year, the company posted $1.53 earnings per share. The business’s quarterly revenue was up 4.9% compared to the same quarter last year. 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. Sell-side analysts expect that Zoom Communications will post 4.11 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently weighed in on ZM. UBS Group raised their price objective on Zoom Communications from $105.00 to $115.00 and gave the stock a “neutral” rating in a research report on Thursday, August 20th. Needham & Company LLC restated a “buy” rating and set a $130.00 price target on shares of Zoom Communications in a research report on Wednesday. Bank of America began coverage on Zoom Communications in a report on Wednesday, August 19th. They set a “buy” rating and a $130.00 target price on the stock. Mizuho increased their price target on Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a report on Friday, May 22nd. Finally, HSBC boosted their price target on shares of Zoom Communications from $107.00 to $133.00 and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Sixteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $112.55.

Insider Transactions at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,644 shares of the stock in a transaction that occurred on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total value of $703,095.12. Following the completion of the sale, the insider directly owned 148,403 shares of the company’s stock, valued at $13,650,107.94. This represents a 4.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 7,911 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total transaction of $801,621.63. Following the completion of the sale, the director directly owned 127,060 shares of the company’s stock, valued at $12,874,989.80. This represents a 5.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 56,155 shares of company stock valued at $5,654,761. Company insiders own 8.83% of the company’s stock.

Key Headlines Impacting Zoom Communications

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

• Positive Sentiment: Zoom reported fiscal Q2 revenue of $1.28 billion, up 4.9% year over year and ahead of the $1.27 billion consensus estimate. Adjusted EPS of $1.55 also exceeded expectations of about $1.48, while enterprise revenue rose 7.8% to $787.5 million. Zoom Communications Reports Financial Results
• Positive Sentiment: The company raised its fiscal 2027 outlook, including EPS guidance of $6.08-$6.12, above the approximately $5.71 analyst consensus. Record contact-center bookings, large customer wins and AI-powered deals point to improving enterprise momentum. Zoom Q2 Earnings Call Highlights
• Positive Sentiment: Analyst sentiment remains mixed but includes bullish calls: Needham reaffirmed a Buy rating with a $130 price target, while a Seeking Alpha analysis upgraded ZM to Buy. The latter cited Zoom’s strong cash position, 24.6% GAAP operating margin and potential value from its stake in AI company Anthropic if an anticipated IPO occurs. Zoom: The Anthropic IPO May Be Coming
• Neutral Sentiment: RBC and other analysts see longer-term potential from enterprise demand, AI-enabled products and broader adoption of Zoom’s platform, but describe these opportunities as dependent on continued execution rather than immediate earnings acceleration. Zoom to Gain From AI and Enterprise Growth
• Negative Sentiment: Fiscal Q3 adjusted EPS guidance of $1.46-$1.48 came in below Wall Street expectations. The softer outlook, attributed partly to competition and slower online/consumer growth, overshadowed the Q2 earnings beat and caused shares to decline. Zoom Forecasts Quarterly Profit Below Estimates

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently made changes to their positions in ZM. Virtu Financial LLC acquired a new stake in shares of Zoom Communications during the fourth quarter worth $554,000. Compound Planning Inc. grew its holdings in shares of Zoom Communications by 10.0% during 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. boosted its position in Zoom Communications by 16.6% during the 4th 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 period. Corient Private Wealth LLC lifted its position in shares of Zoom Communications by 345.7% in the 4th 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 increased its stake in Zoom Communications by 28.8% in the fourth quarter. Alpine Woods Capital Investors LLC now owns 19,327 shares of the company’s stock valued at $1,668,000 after purchasing an additional 4,327 shares in the last quarter. 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.