Zoom Communications (NASDAQ:ZM) Releases Q3 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM) updated its third quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 1.460-1.480 for the period, compared to the consensus EPS estimate of 0.910. The company issued revenue guidance of $1.3 billion-$1.3 billion, compared to the consensus revenue estimate of $1.3 billion. Zoom Communications also updated its FY 2027 guidance to 6.080-6.120 EPS.

Zoom Communications Stock Performance

Shares of ZM stock opened at $100.92 on Wednesday. The company has a market capitalization of $29.59 billion, a PE ratio of 14.82, a price-to-earnings-growth ratio of 5.53 and a beta of 1.00. Zoom Communications has a 52-week low of $70.70 and a 52-week high of $114.74. The business’s fifty day moving average is $94.00 and its 200 day moving average is $91.30.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. The business had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.27 billion. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The firm’s revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.53 earnings per share. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. On average, sell-side analysts forecast that Zoom Communications will post 4.21 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently commented on ZM. Weiss Ratings lowered Zoom Communications from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, August 14th. HSBC lifted their target price on shares of Zoom Communications from $107.00 to $133.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Robert W. Baird increased their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an “outperform” rating in a report on Tuesday, May 19th. Needham & Company LLC restated a “buy” rating and set a $130.00 price objective on shares of Zoom Communications in a research report on Thursday, July 2nd. Finally, Morgan Stanley raised their price objective on shares of Zoom Communications from $92.00 to $105.00 and gave the company an “equal weight” rating in a research report on Friday, May 22nd. Sixteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $111.55.

Insider Transactions at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,644 shares of the company’s stock in a transaction that occurred on Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total value of $703,095.12. Following the completion of the sale, the insider owned 148,403 shares of the company’s stock, valued at $13,650,107.94. This represents a 4.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $90.80, for a total transaction of $770,801.20. Following the transaction, the chief financial officer owned 35,452 shares in the company, valued at $3,219,041.60. The trade was a 19.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 56,155 shares of company stock worth $5,654,761. 8.83% of the stock is owned by corporate insiders.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Zoom reported adjusted earnings of $1.55 per share and revenue of $1.28 billion, exceeding analyst estimates of $1.48 and $1.27 billion, respectively. Revenue increased 4.9% year over year, while enterprise revenue rose 7.8% to $787.5 million. Zoom Communications Reports Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.08-$6.12, above the roughly $5.71 consensus cited in company updates. AI-powered deals, record contact-center bookings and larger enterprise wins were highlighted as drivers of future growth. Zoom Q2 2027 Earnings Call Highlights
• Neutral Sentiment: Analyst opinion remains divided. BTIG reaffirmed a Buy rating with a $125 price target, while Cantor Fitzgerald maintained a Neutral rating with a $104 target, reflecting uncertainty over the pace of Zoom’s growth and AI monetization. BTIG Buy Rating
• Negative Sentiment: Zoom’s third-quarter profit outlook came in below Wall Street expectations, despite revenue guidance near consensus. The forecast suggests that competition is pressuring margins and that AI investments have not yet produced enough incremental growth to satisfy investors. Zoom Forecasts Quarterly Profit Below Estimates
• Negative Sentiment: The earnings beat was relatively modest, with revenue growth remaining in the mid-single digits and online growth described as tempered. Reports characterized the outlook as flat or soft, causing the near-term guidance to overshadow the quarter’s better-than-expected results. Zoom’s Soft Q3 Guidance Overshadows Q2 Double Beat

Institutional Trading of Zoom Communications

Several hedge funds have recently added to or reduced their stakes in the business. Advocate Investing Services LLC purchased a new position in shares of Zoom Communications in the fourth quarter worth about $26,000. Strive Financial Group LLC purchased a new stake in Zoom Communications during the 4th quarter valued at about $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its position in Zoom Communications by 83.3% during the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company’s stock worth $38,000 after acquiring an additional 200 shares during the last quarter. Triumph Capital Management purchased a new position in Zoom Communications in the 3rd quarter worth approximately $50,000. Finally, UMB Bank n.a. lifted its position in Zoom Communications by 1,626.3% in the fourth quarter. UMB Bank n.a. now owns 656 shares of the company’s stock valued at $57,000 after purchasing an additional 618 shares during the last quarter. 66.54% of the stock is owned by institutional investors.

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.