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

Zoom Communications (NASDAQ:ZM) updated its third quarter 2027 earnings guidance on Tuesday. The company provided earnings per share guidance of 1.460-1.480 for the period, compared to the consensus 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 3.7%

Zoom Communications stock traded down $3.91 during mid-day trading on Tuesday, reaching $100.92. 6,790,355 shares of the company’s stock were exchanged, compared to its average volume of 4,130,263. The company has a market cap of $29.59 billion, a P/E ratio of 14.82, a P/E/G ratio of 5.67 and a beta of 1.00. Zoom Communications has a twelve month low of $70.70 and a twelve month high of $114.74. The company has a fifty day moving average of $93.83 and a 200-day moving average of $91.23.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. 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. Equities research analysts expect that Zoom Communications will post 4.21 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research firms recently commented on ZM. Bank of America started coverage on Zoom Communications in a research note on Wednesday, August 19th. They set a “buy” rating and a $130.00 target price for the company. BTIG Research reaffirmed a “buy” rating and issued a $125.00 price target on shares of Zoom Communications in a research report on Monday. Citigroup lifted their price objective on Zoom Communications from $122.00 to $126.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. HSBC boosted their price objective on Zoom Communications from $107.00 to $133.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. Finally, Piper Sandler upped their target price on shares of Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a research note on Friday, May 22nd. Sixteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $111.64.

Insiders Place Their Bets

In other news, CFO Michelle Chang sold 8,489 shares of Zoom Communications stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $90.80, for a total transaction of $770,801.20. Following the sale, the chief financial officer owned 35,452 shares in the company, valued at approximately $3,219,041.60. The trade was a 19.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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, insider Velchamy Sankarlingam sold 7,644 shares of the business’s stock in a transaction dated 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. The trade was a 4.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 56,155 shares of company stock worth $5,654,761 in the last three months. 8.83% of the stock is owned by company insiders.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Analysts remain constructive ahead of earnings. Needham highlighted Zoom’s potential, while BTIG reaffirmed a Buy rating and set a $125 price target, implying meaningful upside from recent levels. Needham positive on Zoom ahead of Q2 results Zoom analyst forecasts ahead of earnings
• Positive Sentiment: Zoom’s AI initiatives are a key potential catalyst, with investors watching adoption of AI-powered products and the company’s reported investment in Anthropic. A continued streak of revenue beats could reinforce the view that Zoom is undervalued relative to its growth opportunities. Why Zoom results could put its AI push in focus Zoom is cheap ahead of Q2 earnings
• Neutral Sentiment: Cantor Fitzgerald maintained a Neutral rating with a $104 price target, suggesting limited near-term upside and a cautious stance ahead of the report. Cantor Fitzgerald rating update
• Neutral Sentiment: Zoom shares have been firm relative to their longer-term moving averages, while broader mid-cap strength may provide some market support. However, the earnings release is likely to dominate trading in the near term. Zoom steps forward as midcaps firm near records
• Negative Sentiment: Analysts are also warning that customer churn could offset AI-related optimism. Investors will focus on retention, enterprise demand, guidance and management’s explanation of competitive pressures. Zoom Q2 preview and customer churn caution

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC lifted its stake in Zoom Communications by 43.9% in the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock valued at $1,052,328,000 after buying an additional 3,718,186 shares during the last quarter. State Street Corp increased its stake in shares of Zoom Communications by 5.0% during the fourth quarter. State Street Corp now owns 7,582,924 shares of the company’s stock worth $654,331,000 after acquiring an additional 363,776 shares during the period. FIL Ltd increased its position in Zoom Communications by 0.4% during the 4th quarter. FIL Ltd now owns 3,284,861 shares of the company’s stock worth $283,451,000 after purchasing an additional 11,849 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Zoom Communications by 9.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,852,621 shares of the company’s stock worth $246,153,000 after acquiring an additional 248,640 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Zoom Communications by 46.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company’s stock valued at $218,282,000 after purchasing an additional 836,594 shares in the last quarter. 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.