DailyIQ
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Sector:TechnologyAll sectors
Last updated 1 hour ago

ZM·Zoom Communications Inc.

$.
-. (-.%)
High
$107.50
Open
$105.22
Market Cap
30.50B
52W High
$113.73
Low
$99.66
P. Close
$105.64
P/E
14.73
52W Low
$69.15
Fwd P/E
16.83
Mean Target
-
Technical Score (1D)
100
BUY
News Sentiment
59
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 video conferencing, cloud-based phone systems, and collaborative features. Operating within the Technology sector, specifically the Software - Application industry, Zoom aims to facilitate human connection across diverse devices and locations for businesses. The company's platform includes solutions for meetings, phone, chat, whiteboards, contact centers, and event management, serving a wide array of industries. In its most recent reported quarters, Zoom demonstrated a positive trend in earnings per share (EPS) growth, with Q2 2027 actual EPS not provided but estimated at $1.4757, following an actual EPS of $1.55 in Q1 2027 against an estimate of $1.4601, and an actual EPS of $1.44 in Q4 2026 against an estimate of $1.5328. Revenue trends showed a slight deceleration from Q4 2026 ($1.246 billion actual vs $1.269 billion estimate) to Q1 2027 ($1.239 billion actual vs $1.260 billion estimate), though Q2 2027 revenue was estimated at $1.268 billion. The company has shown a mixed beat/miss pattern in recent EPS reporting, beating estimates in Q1 2027 but missing in Q4 2026, while revenue estimates were missed in both Q4 2026 and Q1 2027. Historically, Zoom has exhibited a trajectory of revenue growth, though recent quarters show a more moderated pace compared to earlier periods. The company has experienced notable instances of both beating and missing analyst estimates for EPS and revenue, indicating some variability in performance against expectations. A consistent pattern observed is the company's ability to generate revenue, even in quarters where EPS fell short of analyst projections. Recent news highlights a strong first quarter for fiscal 2026, where Zoom surpassed revenue and adjusted EPS expectations, driven significantly by an 184% year-over-year surge in paid AI Companion users. This performance led to an upward revision of the company's full-year financial outlook and an additional $1 billion share repurchase program, signaling increased confidence. However, the company also acknowledged a slower acquisition of new large enterprise customers. Investors will be watching for the continued momentum of AI adoption and its impact on revenue growth, as well as any signs of re-acceleration in new large enterprise customer acquisition in upcoming quarters. Key will be the sustainability of the raised guidance and the company's ability to effectively monetize its AI investments while addressing enterprise growth.

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 $101.17, giving Zoom Communications Inc. a market cap of 30.50B and a P/E ratio of 14.7. Today's range spans $99.66–$107.50, with shares opening at $105.22 and moving down $4.47 (4.2%) from the prior close. DailyIQ's technical score sits at 100/100 (BUY) with a news sentiment reading of 59/100.

Over the past year ZM has traded between $69.15 and $113.73 - the current price is +46.3% off the 52-week low and -11.0% from the high.

What ZM has right now - BUY signal, 100/100 technical score, neutral sentiment at 59/100, price $101.17 (in the upper portion of its 52-week range) - is the profile that shows up in screens looking for Technology growth stories with technical confirmation. (P/E: 14.7) At 30.50B in capitalization, the risk/reward of a setup like this is often better than in mega-cap peers where the same signal translates to a smaller percentage move. Range: $69.15–$113.73.

The combination of a BUY signal (100/100) and neutral news sentiment (59/100) puts ZM on the screens of active managers who run quality-momentum overlays — a cohort that can build meaningful positions at 30.50B in Technology market cap without immediately moving the stock. At $101.17 (in the upper portion of its 52-week range in the $69.15–$113.73 range), the entry discipline is clean and the potential re-rating if sentiment continues to improve is meaningful.

Recent News Coverage

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