Zoom Communications (NASDAQ:ZM) Releases Q1 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM) updated its first quarter 2027 earnings guidance on Wednesday. The company provided EPS guidance of 1.400-1.420 for the period, compared to the consensus EPS estimate of 0.860. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.2 billion. Zoom Communications also updated its FY 2027 guidance to 5.770-5.810 EPS.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Sanford C. Bernstein cut their price objective on Zoom Communications from $90.00 to $88.00 and set a “market perform” rating on the stock in a report on Thursday. BTIG Research lowered their target price on shares of Zoom Communications from $105.00 to $100.00 and set a “buy” rating on the stock in a report on Thursday. Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $87.00 price objective on shares of Zoom Communications in a research note on Tuesday, November 25th. Citigroup raised shares of Zoom Communications from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $94.00 to $106.00 in a report on Monday, January 12th. Finally, Morgan Stanley lifted their target price on Zoom Communications from $85.00 to $92.00 and gave the stock an “equal weight” rating in a report on Tuesday, November 25th. Fourteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $95.32.

Zoom Communications Trading Down 0.9%

Shares of ZM stock traded down $0.66 during midday trading on Friday, reaching $74.88. 3,376,230 shares of the stock were exchanged, compared to its average volume of 4,154,913. The company’s 50 day moving average is $87.95 and its two-hundred day moving average is $84.36. Zoom Communications has a 1 year low of $64.41 and a 1 year high of $97.58. The firm has a market cap of $22.17 billion, a PE ratio of 12.08, a price-to-earnings-growth ratio of 7.65 and a beta of 0.90.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.04). The business had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.23 billion. Zoom Communications had a return on equity of 12.13% and a net margin of 39.03%.The business’s quarterly revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the business earned $1.41 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, equities analysts expect that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insider Transactions at Zoom Communications

In related news, Director Santiago Subotovsky sold 2,475 shares of the business’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $90.39, for a total transaction of $223,715.25. Following the transaction, the director directly owned 155,917 shares in the company, valued at approximately $14,093,337.63. The trade was a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Eric S. Yuan sold 73,378 shares of the stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $87.29, for a total value of $6,405,165.62. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 183,089 shares of company stock worth $15,751,383 in the last three months. 11.51% of the stock is owned by corporate insiders.

Zoom Communications News Roundup

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

• Positive Sentiment: Revenue topped estimates and enterprise sales grew, with Q4 revenue of ~$1.25B (up ~5.3% Y/Y) and enterprise revenue up ~7.1% Y/Y. Zoom Communications Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Company highlighted product momentum (launch of Zoom Virtual Agent 3.0) and completed a $2.7B share-repurchase program — items that support long-term investor returns and strategic positioning. Zoom Is Down After Strong FY26 Results, New AI Launch And Buyback Completion
• Positive Sentiment: Margins expanded and cash flow dynamics improved in the quarter, which management highlighted on the call. Zacks: Zoom Q4 Earnings Miss Estimates, Revenues Increase Y/Y
• Neutral Sentiment: Analyst reactions are mixed: some firms reaffirmed or raised targets (buy ratings and higher TPs from Rosenblatt and BTIG), while others trimmed expectations — leaving consensus views scattered. Benzinga: Analyst Notes
• Neutral Sentiment: Broader market softness and mixed macro signals (housing/manufacturing) have pressured futures, which can amplify sector moves on earnings days. US Stock Market Today S&P 500 Futures Slip
• Negative Sentiment: Non-GAAP EPS of $1.44 missed the Street (~$1.48), which disappointed investors despite the revenue beat. Zoom: Fiscal Q4 Earnings Snapshot
• Negative Sentiment: Management’s profit commentary/quarterly profit forecast was viewed as cautious and below some Street expectations; Reuters noted guidance came amid intense competition from Microsoft and Google. Reuters: Zoom forecasts quarterly profit below estimates
• Negative Sentiment: Market reaction: shares tumbled double-digits in recent sessions (after-hours/intraday), reflecting profit-taking after earlier strength and concern over the outlook and EPS miss. Zoom (ZM) Nosedives 11.6% After Earnings

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ZM. Virtu Financial LLC bought a new position in Zoom Communications during the fourth quarter valued at about $554,000. Compound Planning Inc. raised its holdings in shares of Zoom Communications by 10.0% during the fourth quarter. Compound Planning Inc. now owns 7,940 shares of the company’s stock worth $685,000 after acquiring an additional 725 shares in the last quarter. Invesco Ltd. increased its holdings in Zoom Communications by 16.6% in the fourth quarter. Invesco Ltd. now owns 961,582 shares of the company’s stock worth $82,975,000 after buying an additional 136,911 shares during the last quarter. Corient Private Wealth LLC increased its position in Zoom Communications by 345.7% during the fourth quarter. Corient Private Wealth LLC now owns 245,879 shares of the company’s stock worth $21,217,000 after buying an additional 190,713 shares during the last quarter. Finally, Alpine Woods Capital Investors LLC raised its holdings in Zoom Communications by 28.8% in the 4th quarter. Alpine Woods Capital Investors LLC now owns 19,327 shares of the company’s stock worth $1,668,000 after acquiring an additional 4,327 shares during the period. Institutional investors own 66.54% of the company’s stock.

Zoom Communications Company Profile

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.