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

Zoom Communications (NASDAQ:ZM) updated its FY 2027 earnings guidance on Thursday. 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.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Argus raised shares of Zoom Communications to a “hold” rating in a research note on Monday, March 9th. Rosenblatt Securities lifted their target price on shares of Zoom Communications from $115.00 to $130.00 and gave the stock a “buy” rating in a research note on Friday. Benchmark lifted their target price on shares of Zoom Communications from $115.00 to $121.00 and gave the stock a “buy” rating in a research note on Thursday. Mizuho lifted their target price on shares of Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a research note on Friday. Finally, KeyCorp raised shares of Zoom Communications from an “underweight” rating to a “sector weight” rating in a research note on Friday. Fourteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $107.95.

Zoom Communications Trading Up 9.2%

Shares of ZM stock opened at $105.64 on Friday. The company’s 50-day moving average price is $88.73 and its 200-day moving average price is $86.72. The stock has a market cap of $31.13 billion, a price-to-earnings ratio of 15.51, a PEG ratio of 5.54 and a beta of 1.00. Zoom Communications has a twelve month low of $69.15 and a twelve month high of $113.73.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.13. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 12.06%. The company’s revenue was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.43 EPS. 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. As a group, equities research analysts predict that Zoom Communications will post 3.94 EPS for the current year.

Insider Activity

In other news, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $81.32, for a total transaction of $690,325.48. Following the transaction, the chief financial officer owned 30,467 shares of the company’s stock, valued at approximately $2,477,576.44. The trade was a 21.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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. Also, COO Aparna Bawa sold 12,886 shares of the business’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer directly owned 1,978 shares in the company, valued at approximately $173,312.36. The trade was a 86.69% 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. In the last 90 days, insiders have sold 144,329 shares of company stock worth $12,364,989. Insiders own 11.51% of the company’s stock.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Zoom beat fiscal Q1 expectations, posting EPS of $1.55 versus the $1.41 consensus and revenue of $1.24 billion versus $1.22 billion expected, with revenue up 5.5% year over year. Zoom Communications Reports Financial Results for the First Quarter of Fiscal Year 2027
• Positive Sentiment: The company lifted FY2027 guidance, now targeting EPS of $5.96-$6.00, above prior expectations, which signals management confidence in continued margin and profit expansion. Zoom Raises FY2027 Outlook After 184% Paid AI User Growth
• Positive Sentiment: AI momentum was a key driver, with paid AI users surging 184% and enterprise revenue rising 7.2%, suggesting Zoom is successfully expanding beyond basic video conferencing into higher-value enterprise tools. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Several Wall Street firms raised price targets after the results, including RBC, Rosenblatt, Needham, BTIG, Mizuho, Benchmark, and Piper Sandler, reflecting improved sentiment around Zoom’s growth outlook. These Analysts Increase Their Forecasts On Zoom After Upbeat Q1 Results
• Neutral Sentiment: Zoom also reported a modest uptick in churn and competitive pressure, which investors may continue to monitor even as the broader earnings picture remains strong. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …

Institutional Inflows and Outflows

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