DailyIQ
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Sector:TechnologyAll sectors
Last updated 2 minutes ago

ZM·Zoom Communications Inc.

$.
-. (-.%)
Pre-Market
High
$91.53
Open
$91.47
Market Cap
26.83B
52W High
$114.74
Low
$91.00
P. Close
$92.53
P/E
12.96
52W Low
$69.15
Fwd P/E
14.75
DailyIQ Est.
$118.39
Technical Score (1D)
59
BUY
News Sentiment
67
BULLISH
Zoom Communications announced that it has broadened its cloud‑native platform with an AI‑driven agentic system and expanded its Zoom Phone and Contact Center offerings, signaling a push to deepen AI integration and drive enterprise adoption. The company’s focus on AI is intended to enhance user experience and generate incremental revenue growth across industries. Earlier this week, analysts projected a modest 2.61 % decline in quarterly EPS to $1.49, while revenue was expected to rise 4.22 % YoY to $1.27 billion. The AI expansion could offset the earnings dip by boosting usage and upsell opportunities, potentially improving margins. Investors will be watching the upcoming earnings release for guidance on whether the new AI initiatives translate into higher profitability. If earnings beat consensus, the AI push may justify a higher valuation for the next 1–10 trading days. Watch next for the earnings call, any revisions to guidance, and commentary on AI adoption rates. Pay particular attention to updates on Zoom Phone and Contact Center uptake, as these are key revenue drivers. Finally, monitor broader enterprise software sentiment, which could influence market support for the stock.
Earnings Summary
Zoom Communications, Inc. (ZM) is a global provider of a unified communications platform that delivers high‑definition video conferencing, voice, and content sharing through its core Zoom Meetings product, while expanding into cloud‑based phone, chat, whiteboard, workflow automation, contact center, event management, and an app marketplace to serve a broad spectrum of industries. The company operates in the technology sector, specifically within software‑as‑a‑service, and competes with other collaboration and contact‑center platforms. In the most recent two quarters with earnings data—Q4 2026 and Q1 2027—Zoom reported EPS of $1.44 and $1.55, respectively, compared to $1.53 and $1.52 in Q2 2025 and Q3 2025, indicating a slight dip in Q4 2026 followed by a rebound in Q1 2027; revenue rose from $1.217 billion in Q2 2025 to $1.247 billion in Q4 2026 before falling modestly to $1.239 billion in Q1 2027, reflecting a modestly accelerating revenue trend through 2026 and a small deceleration into 2027. Historically, Zoom has consistently beat analyst EPS estimates in five of six quarters, with only the Q4 2026 quarter missing the $1.5328 estimate; revenue guidance is only available for Q4 2026 and Q1 2027, where actuals fell slightly short of estimates, suggesting a potential slowdown in top‑line momentum. Recent news highlights the launch of a virtual‑agent receptionist that can be deployed across any telephony environment, expanding its contact‑center automation portfolio, and the near‑completion of the Common Room acquisition, which will embed AI‑driven buyer‑intelligence into Zoom’s sales workflows; these initiatives are positioned to enhance average revenue per user and improve margins, though analysts note revenue growth remains under 5% and net revenue retention at 98.3%. Forward‑looking watch points for investors include monitoring Zoom’s upcoming earnings guidance for revenue outlook, the pace of Common Room integration, and the adoption rate of the new virtual agent, as well as any regulatory developments surrounding the acquisition that could influence the company’s growth trajectory.

EPS

EstBeatMiss
$1.27$1.35$1.43$1.51$1.59Q1'25Q2'25Q3'25Q4'26Q1'27Q2'27
QtrEstActual+/−
Q2'27$1.48 - -
Q1'27$1.46$1.55+6.2%
Q4'26$1.53$1.44-6.1%
Q3'25$1.44$1.52+5.8%
Q2'25$1.38$1.53+11.0%
Q1'25$1.31$1.43+9.5%

Revenue

EstBeatMiss
$1.2B$1.2B$1.2B$1.3B$1.3BQ1'25Q2'25Q3'25Q4'26Q1'27Q2'27
QtrEstActual+/−
Q2'27$1.3B - -
Q1'27$1.3B$1.2B-1.7%
Q4'26$1.3B$1.2B-1.8%
Q3'25 - $1.2B -
Q2'25 - $1.2B -
Q1'25 - $1.2B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

ZM Stock Snapshot

ZM is currently trading at $91.00, giving Zoom Communications Inc. a market cap of 26.83B and a P/E ratio of 13.0. Today's range spans $91.00–$91.53, with shares opening at $91.47 and moving down $1.53 (1.7%) from the prior close. DailyIQ's technical score sits at 59/100 (HOLD) with a news sentiment reading of 67/100.

Over the past year ZM has traded between $69.15 and $114.74 - the current price is +31.6% off the 52-week low and -20.7% from the high. 40 analysts cover the stock with a Hold consensus and a mean 12-month target of $115.00 (range $79.00–$135.00), implying upside of +26.4%.

ZM sits at $91.00 (in the middle of its 52-week range) with a HOLD technical read (59/100) and bullish sentiment (67/100). The 26.83B market cap in Technology (P/E: 13.0) makes this a name that institutional coverage maintains even through neutral phases - which means any catalyst shift will be quickly priced in. Annual range: $69.15–$114.74.

Portfolio construction in Technology often uses large-cap names like ZM as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 59/100 (HOLD) at $91.00 (in the middle of its 52-week range) and bullish sentiment (67/100) frame the position as a catalyst play within the $69.15–$114.74 annual range rather than a directional bet.