DailyIQ
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Sector:TechnologyAll sectors
Last updated 48 minutes ago

ZM·Zoom Communications Inc.

$.
-. (-.%)
High
$101.94
Open
$99.42
Market Cap
30.50B
52W High
$113.73
Low
$98.50
P. Close
$100.09
P/E
14.73
52W Low
$69.15
Fwd P/E
15.91
Mean Target
$112.42
Technical Score (1D)
86
BUY
News Sentiment
68
BULLISH
Zoom Communications is repositioning itself as an AI-first platform, moving beyond its core video conferencing services to enhance productivity and automate workflows. This strategic pivot is gaining traction, as evidenced by a significant year-over-year surge in paid AI Companion users and strong adoption of features like My Notes. The company's recent Q1 earnings beat and increased full-year guidance underscore the market's positive reception to this AI-driven strategy. Management is emphasizing AI and customer experience as key drivers for sustained future growth. Investors should monitor the continued adoption of AI features and international revenue trends, which are critical for assessing the company's overall financial health and global market penetration. While Zoom holds a Zacks Rank of #3 (Hold), its focus on AI innovation suggests a potential for future upside, though it is currently ranked below OneSpan's Zacks Rank #2 (Buy). The company's Q4 2026 earnings call provided further commentary on business performance and strategic outlook, reinforcing the forward-looking emphasis on these growth areas.
Earnings Summary
Zoom Communications, Inc. is a global provider of a unified communications platform, offering services like Zoom Meetings and Zoom Phone, and expanding into collaborative features and contact center solutions within the Technology sector's Software - Application industry. The company aims to facilitate human connection across diverse devices and locations, serving a broad spectrum of business needs. In its most recent reported quarters, Zoom demonstrated an acceleration in both earnings per share and revenue growth. For Q2 2025, EPS was $1.53 against an estimate of $1.37806, and revenue reached $1.217 billion. This followed Q1 2025 where EPS was $1.43 against an estimate of $1.30542, with revenue at $1.174 billion. Prior to this, Q4 2024 saw EPS of $1.41 against an estimate of $1.34783. The company has shown a consistent pattern of beating analyst estimates for EPS in the last three reported quarters (Q1 2025, Q2 2025, Q3 2025), indicating positive earnings momentum. Historically, Zoom has exhibited a generally positive year-over-year revenue growth trajectory, though specific EPS beats and misses have varied. For instance, Q4 2026 reported an EPS of $1.44, missing the estimate of $1.5328, despite revenue of $1.246 billion slightly missing its estimate of $1.269 billion. Conversely, Q1 2027 reported an EPS of $1.55, beating the estimate of $1.4601, with revenue at $1.239 billion against an estimate of $1.260 billion. Recent news highlights Zoom's strategic pivot to an AI-first platform, which is driving significant adoption of AI features like AI Companion, leading to a substantial year-over-year surge in paid users and prompting an increase in full-year guidance. Investors should watch for the continued adoption and monetization of AI features as a key driver for future growth, alongside international revenue trends which are considered vital for assessing the company's overall financial health and global market penetration. The ability of AI momentum to offset slower acquisition of new large enterprise customers will also be a critical point to monitor in upcoming quarters.

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 $99.98, giving Zoom Communications Inc. a market cap of 30.50B and a P/E ratio of 14.7. Today's range spans $98.50–$101.94, with shares opening at $99.42 and moving down $0.11 (0.1%) from the prior close. DailyIQ's technical score sits at 86/100 (BUY) with a news sentiment reading of 68/100.

Over the past year ZM has traded between $69.15 and $113.73 - the current price is +44.6% off the 52-week low and -12.1% from the high. 40 analysts cover the stock with a Buy consensus and a mean 12-month target of $112.42 (range $66.00–$135.00), implying upside of +12.4%.

ZM is scoring 86/100 technically (BUY) and sits at $99.98 - in the upper portion of its 52-week range in its $69.15–$113.73 annual range. Sentiment at 68/100 is bullish. At 30.50B in Technology market cap The current P/E ratio stands at 14.7., this is the tier where earnings revision cycles have the most impact on price: upward revisions in a large-cap company with bullish momentum tend to attract analyst upgrades, which in turn attract new institutional mandates.

Earnings revision cycles in large-cap Technology names tend to compound: when technicals confirm a BUY thesis (86/100) and news sentiment (68/100, bullish) supports the narrative, analyst upgrades follow price rather than lead it. At $99.98 (in the upper portion of its 52-week range), ZM's position within the $69.15–$113.73 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.