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

Zoom Communications (NASDAQ:ZM) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 5.770-5.810 for the period, compared to the consensus earnings per share estimate of 3.690. The company issued revenue guidance of $5.1 billion-$5.1 billion, compared to the consensus revenue estimate of $5.0 billion. Zoom Communications also updated its Q1 2027 guidance to 1.400-1.420 EPS.

Zoom Communications Trading Down 13.6%

Shares of Zoom Communications stock traded down $11.61 on Thursday, hitting $73.82. 10,135,610 shares of the company traded hands, compared to its average volume of 3,990,829. The company has a market cap of $21.86 billion, a PE ratio of 14.35, a PEG ratio of 7.84 and a beta of 0.90. The stock’s 50 day moving average price is $88.22 and its 200-day moving average price is $84.43. Zoom Communications has a 52 week low of $64.41 and a 52 week high of $97.58.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.04). The firm had revenue of $1.25 billion for the quarter, compared to analysts’ expectations of $1.23 billion. Zoom Communications had a return on equity of 12.20% and a net margin of 33.17%.The company’s revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.41 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, research analysts anticipate that Zoom Communications will post 2.93 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on ZM shares. Citigroup raised shares of Zoom Communications from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $94.00 to $106.00 in a research note on Monday, January 12th. Wall Street Zen downgraded shares of Zoom Communications from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 15th. Jefferies Financial Group lifted their price target on Zoom Communications from $100.00 to $105.00 and gave the company a “buy” rating in a report on Tuesday, November 25th. Zacks Research cut Zoom Communications from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 13th. Finally, KeyCorp lifted their target price on Zoom Communications from $69.00 to $74.00 and gave the company an “underweight” rating in a research note on Thursday. Fourteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Zoom Communications currently has a consensus rating of “Hold” and a consensus price target of $95.32.

Insider Activity at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,568 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $86.55, for a total transaction of $655,010.40. Following the transaction, the insider owned 136,182 shares in the company, valued at approximately $11,786,552.10. This represents a 5.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Santiago Subotovsky sold 2,475 shares of Zoom Communications stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $90.39, for a total transaction of $223,715.25. Following the sale, the director owned 155,917 shares of the company’s stock, valued at $14,093,337.63. The trade was a 1.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 183,089 shares of company stock worth $15,751,383 in the last 90 days. 11.51% of the stock is owned by insiders.

More Zoom Communications News

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

• Positive Sentiment: Revenue and enterprise strength — Q4 revenue of ~$1.25B beat Street estimates and grew ~5.3% year‑over‑year; enterprise revenue and the count of customers >$100k both showed healthy gains, supporting longer‑term commercial traction. Q4 Results
• Positive Sentiment: New AI product — Zoom launched Zoom Virtual Agent 3.0, which management positions as a growth lever in automated customer service and AI-enabled collaboration that could expand enterprise spend over time. ZVA 3.0
• Positive Sentiment: Capital return completed — management completed a $2.7B share repurchase program, which reduces share count and can support EPS over time. Buyback Mention
• Neutral Sentiment: Analyst divergence — some firms (Rosenblatt, BTIG) maintain buy ratings and higher price targets while others (KeyCorp, Citizens Jmp) remain cautious or market‑perform; the split increases near‑term volatility and reflects mixed views on Zoom’s growth runway. Analyst Notes
• Negative Sentiment: EPS miss — non‑GAAP EPS of $1.44 came in slightly below consensus (~$1.48–$1.49), a driver of the immediate selloff as it signals pressure on near‑term profitability. Earnings Miss
• Negative Sentiment: Cautious profit guidance & competition — management’s quarterly profit outlook was viewed as below some Street estimates and Reuters notes intensifying competition (Microsoft Teams, Google Meet) that could cap pricing/market share gains. These are the main reasons for the downward move today. Guidance & Competition

Institutional Investors Weigh In On Zoom Communications

Several hedge funds have recently bought and sold shares of the stock. Sivia Capital Partners LLC purchased a new position in Zoom Communications in the second quarter valued at about $217,000. Employees Retirement System of Texas raised its holdings in shares of Zoom Communications by 55.7% during the 3rd quarter. Employees Retirement System of Texas now owns 2,355 shares of the company’s stock valued at $194,000 after buying an additional 842 shares during the period. Smartleaf Asset Management LLC lifted its position in Zoom Communications by 29.1% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,745 shares of the company’s stock worth $151,000 after acquiring an additional 393 shares in the last quarter. Advisory Services Network LLC acquired a new position in Zoom Communications during the 3rd quarter worth approximately $145,000. Finally, Steward Partners Investment Advisory LLC boosted its holdings in Zoom Communications by 89.7% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 1,417 shares of the company’s stock worth $122,000 after acquiring an additional 670 shares during the period. Hedge funds and other 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.