Zoom Communications (NASDAQ:ZM) Releases Q2 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM) updated its second quarter 2027 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.450-1.470 for the period, compared to the consensus estimate of 0.920. 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 5.960-6.000 EPS.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Wolfe Research raised Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 price target for the company in a report on Thursday, February 5th. Cantor Fitzgerald increased their price target on Zoom Communications from $87.00 to $104.00 and gave the stock a “neutral” rating in a report on Friday. KeyCorp raised Zoom Communications from an “underweight” rating to a “sector weight” rating in a report on Friday. Wall Street Zen downgraded Zoom Communications from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Finally, Royal Bank Of Canada increased their price target on Zoom Communications from $110.00 to $130.00 and gave the stock an “outperform” rating in a report on Friday. Fourteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat, Zoom Communications presently has a consensus rating of “Moderate Buy” and an average target price of $107.95.

Zoom Communications Stock Performance

Zoom Communications stock opened at $105.64 on Friday. Zoom Communications has a one year low of $69.15 and a one year high of $113.73. The business has a fifty day moving average of $88.73 and a two-hundred day moving average of $86.72. The company has a market cap of $31.13 billion, a P/E ratio of 15.51, a price-to-earnings-growth ratio of 5.54 and a beta of 1.00.

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

Insider Buying and Selling

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of the firm’s stock in a transaction on Friday, April 10th. The stock was sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the sale, the chief financial officer owned 30,467 shares of the company’s stock, valued at approximately $2,477,576.44. This trade represents a 21.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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, Director Santiago Subotovsky sold 5,274 shares of the firm’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $106.58, for a total value of $562,102.92. Following the completion of the sale, the director directly owned 142,882 shares of the company’s stock, valued at approximately $15,228,363.56. This trade represents a 3.56% decrease in their position. 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. Insiders have sold 144,329 shares of company stock valued at $12,364,989 in the last quarter. Corporate 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

A number of hedge funds have recently made changes to their positions in the company. Virtu Financial LLC purchased a new position in shares of Zoom Communications in the fourth quarter valued at $554,000. Compound Planning Inc. increased its position in shares of Zoom Communications by 10.0% in the fourth quarter. Compound Planning Inc. now owns 7,940 shares of the company’s stock valued at $685,000 after buying an additional 725 shares in the last quarter. Invesco Ltd. increased its position in shares of Zoom Communications by 16.6% in the fourth quarter. Invesco Ltd. now owns 961,582 shares of the company’s stock valued at $82,975,000 after buying an additional 136,911 shares in the last quarter. Corient Private Wealth LLC increased its position in shares of Zoom Communications by 345.7% in the fourth quarter. Corient Private Wealth LLC now owns 245,879 shares of the company’s stock valued at $21,217,000 after buying an additional 190,713 shares in the last quarter. Finally, Alpine Woods Capital Investors LLC increased its position in shares of 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 buying an additional 4,327 shares in the last quarter. 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.