Zoom Communications (NASDAQ:ZM) Updates FY 2027 Earnings Guidance

Zoom Communications (NASDAQ:ZM) updated its FY 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 5.960-6.000 for the period, compared to the consensus earnings per share estimate of 5.490. The company issued revenue guidance of $5.1 billion-$5.1 billion, compared to the consensus revenue estimate of $5.1 billion. Zoom Communications also updated its Q2 2027 guidance to 1.450-1.470 EPS.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on ZM. BTIG Research increased their price objective on shares of Zoom Communications from $100.00 to $125.00 and gave the company a “buy” rating in a research report on Friday. Citigroup increased their price objective on shares of Zoom Communications from $106.00 to $122.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Wolfe Research raised shares of Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 price objective for the company in a research report on Thursday, February 5th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $115.00 price objective on shares of Zoom Communications in a research report on Thursday, February 26th. Finally, Wall Street Zen lowered shares of Zoom Communications from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Fourteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $102.65.

Zoom Communications Trading Down 2.7%

ZM opened at $96.75 on Friday. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $111.56. The firm has a market capitalization of $28.51 billion, a PE ratio of 15.60, a P/E/G ratio of 5.69 and a beta of 1.00. The firm has a 50 day moving average of $88.14 and a two-hundred day moving average of $86.59.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.41 by $0.14. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The company had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same period last year, the firm posted $1.43 EPS. Zoom Communications’s revenue for the quarter was up 5.5% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. As a group, analysts predict that Zoom Communications will post 3.94 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other news, COO Aparna Bawa sold 12,886 shares of Zoom Communications stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the completion of the transaction, the chief operating officer directly owned 1,978 shares of the company’s stock, valued at $173,312.36. The trade was a 86.69% decrease in their position. The transaction was disclosed in a document filed 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, CEO Eric S. Yuan sold 69,923 shares of Zoom Communications stock in a transaction that occurred on Monday, April 13th. The shares were sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the transaction, the chief executive officer directly owned 36,796 shares of the company’s stock, valued at approximately $2,988,571.12. This trade represents a 65.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 144,329 shares of company stock worth $12,364,989 in the last ninety days. 11.51% of the stock is owned by company insiders.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Zoom reported first-quarter EPS of $1.55, ahead of consensus, and revenue of about $1.24 billion, also topping estimates, suggesting demand held up better than expected. Zoom Communications (ZM) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Zoom raised full-year and next-quarter guidance, signaling management confidence that AI features and enterprise demand can support further growth and profitability. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Enterprise revenue rose 7.2% year over year, and the enterprise net dollar expansion rate improved to 99%, indicating healthier customer retention and cross-sell momentum. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …
• Neutral Sentiment: Several previews and earnings recap articles focused on the same results, reinforcing the market’s attention on the quarter rather than introducing new catalysts. Zoom (ZM) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Management noted ongoing competitive pressure and a slight uptick in churn, which could limit how much upside investors assign to the growth story. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …

Hedge Funds Weigh In On Zoom Communications

Several institutional investors have recently made changes to their positions in the company. Virtu Financial LLC purchased a new position in shares of Zoom Communications during the 4th quarter valued at approximately $554,000. Compound Planning Inc. grew its stake in Zoom Communications by 10.0% in the 4th quarter. Compound Planning Inc. now owns 7,940 shares of the company’s stock valued at $685,000 after acquiring an additional 725 shares during the period. Invesco Ltd. grew its stake in Zoom Communications by 16.6% in the 4th quarter. Invesco Ltd. now owns 961,582 shares of the company’s stock valued at $82,975,000 after acquiring an additional 136,911 shares during the period. Corient Private Wealth LLC grew its stake in Zoom Communications by 345.7% in the 4th quarter. Corient Private Wealth LLC now owns 245,879 shares of the company’s stock valued at $21,217,000 after acquiring an additional 190,713 shares during the period. Finally, Alpine Woods Capital Investors LLC grew its stake 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 valued at $1,668,000 after acquiring an additional 4,327 shares during the period. 66.54% of the stock is owned by hedge funds and other institutional investors.

About Zoom Communications

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.