DailyIQ
|
Sector:TechnologyAll sectors
Last updated 4 minutes ago

ZM·Zoom Communications Inc.

$.
-. (-.%)
After Hours
High
$91.49
Open
$90.86
Market Cap
26.42B
52W High
$114.74
Low
$89.35
P. Close
$89.78
P/E
12.76
52W Low
$69.15
Fwd P/E
14.25
DailyIQ Est.
$118.39
Technical Score (1D)
68
BUY
News Sentiment
47
MIXED
Zoom’s CEO, Eric Yuan, sold 58,655 shares worth roughly $5.1 million to cover tax withholding on recently vested RSUs, a transaction that was strictly non‑discretionary. Because the sale was driven by tax obligations rather than a strategic decision, it does not alter the company’s long‑term outlook. Yuan still retains substantial indirect equity through trusts and derivative holdings, underscoring his continued confidence in Zoom’s prospects. The immediate effect of the sale is a modest reduction in the company’s short‑term liquidity, but this is unlikely to influence the stock’s price trajectory over the next 1–10 trading days. Market participants should therefore expect low volatility in the near term, as the move is routine and not indicative of any shift in sentiment. Nevertheless, any future discretionary insider sales could raise concerns about confidence in the company’s growth trajectory. Watch for subsequent trades by Yuan or other insiders that might signal a change in outlook. Additionally, keep an eye on upcoming corporate announcements—such as earnings releases or guidance updates—that could materially affect Zoom’s valuation. Finally, monitor broader industry trends in video‑conferencing demand, as shifts in user behavior or competitive dynamics could impact the company’s performance in the short run.
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
→

Market Data

ZM Stock Snapshot

ZM is currently trading at $89.76, giving Zoom Communications Inc. a market cap of 26.42B and a P/E ratio of 12.8. Today's range spans $89.35–$91.49, with shares opening at $90.86 and moving down $0.02 (0.0%) from the prior close. DailyIQ's technical score sits at 68/100 (BUY) with a news sentiment reading of 47/100.

Over the past year ZM has traded between $69.15 and $114.74 - the current price is +29.8% off the 52-week low and -21.8% 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 +28.1%.

ZM carries a BUY signal on a 68/100 technical score, trades at $89.76 (in the middle of its 52-week range), and has neutral sentiment at 47/100. At 26.42B in Technology market cap (P/E: 12.8), the name has scale without the index-anchor inertia of mega-cap peers - which means when the bullish momentum runs, the percentage move can be meaningfully larger. Annual range: $69.15–$114.74.

Earnings revision cycles in large-cap Technology names tend to compound: when technicals confirm a BUY thesis (68/100) and news sentiment (47/100, neutral) supports the narrative, analyst upgrades follow price rather than lead it. At $89.76 (in the middle of its 52-week range), ZM's position within the $69.15–$114.74 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.