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

Zoom Communications (NASDAQ:ZM) issued an update on its FY 2027 earnings guidance on Thursday morning. 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.

Zoom Communications Trading Down 2.7%

Shares of ZM traded down $2.67 during trading hours on Thursday, reaching $96.75. The stock had a trading volume of 8,793,883 shares, compared to its average volume of 4,392,455. Zoom Communications has a 12 month low of $69.15 and a 12 month high of $111.56. The firm has a 50-day simple moving average of $87.73 and a 200 day simple moving average of $86.52. The company has a market capitalization of $28.51 billion, a price-to-earnings ratio of 15.60, a P/E/G ratio of 5.57 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last issued its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.41 by $0.14. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The company had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. 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. On average, equities analysts forecast that Zoom Communications will post 3.94 EPS for the current year.

Analyst Ratings Changes

A number of equities analysts recently issued reports on ZM shares. Wall Street Zen cut Zoom Communications from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Wolfe Research upgraded Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 price objective on the stock in a research note on Thursday, February 5th. Needham & Company LLC restated a “buy” rating and set a $100.00 price objective on shares of Zoom Communications in a research note on Friday, March 13th. Citigroup raised their price objective on Zoom Communications from $106.00 to $122.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Finally, Benchmark raised their price objective on Zoom Communications from $115.00 to $121.00 and gave the company a “buy” rating in a research note on Thursday. Fourteen investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $97.57.

Insider Activity

In other news, Director Santiago Subotovsky sold 5,274 shares of the firm’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the completion of the sale, the director directly owned 142,882 shares of the company’s stock, valued at $15,228,363.56. This trade represents a 3.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of the firm’s stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $85.44, for a total value of $653,188.80. Following the sale, the insider directly owned 141,971 shares of the company’s stock, valued at approximately $12,130,002.24. This represents a 5.11% 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 quarter, insiders sold 144,329 shares of company stock worth $12,364,989. 11.51% of the stock is owned by insiders.

Key Headlines Impacting Zoom Communications

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 Investors Weigh In On Zoom Communications

Several large investors have recently made changes to their positions in ZM. Advocate Investing Services LLC purchased a new stake in Zoom Communications in the 4th quarter worth about $26,000. Strive Financial Group LLC purchased a new stake in Zoom Communications in the 4th quarter worth about $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA increased its holdings in 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 acquiring an additional 200 shares during the last quarter. Triumph Capital Management purchased a new stake in Zoom Communications in the 3rd quarter worth about $50,000. Finally, UMB Bank n.a. increased its holdings in Zoom Communications by 1,626.3% in the 4th quarter. UMB Bank n.a. now owns 656 shares of the company’s stock worth $57,000 after acquiring an additional 618 shares during the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

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.