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

Zoom Communications (NASDAQ:ZM) issued an update on its third quarter 2027 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 1.460-1.480 for the period, compared to the consensus 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.

Analyst Ratings Changes

A number of brokerages have commented on ZM. Bank of America started coverage on shares of Zoom Communications in a research note on Wednesday, August 19th. They issued a “buy” rating and a $130.00 price target for the company. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a report on Friday. Mizuho raised their target price on shares of Zoom Communications from $100.00 to $120.00 and gave the company an “outperform” rating in a research note on Friday, May 22nd. Finally, Jefferies Financial Group lifted their price target on Zoom Communications from $105.00 to $118.00 and gave the stock a “buy” rating in a report on Friday, May 22nd. Sixteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $111.64.

Zoom Communications Price Performance

Zoom Communications stock traded down $3.91 during trading hours on Tuesday, hitting $100.92. The company had a trading volume of 6,415,414 shares, compared to its average volume of 4,117,635. The firm has a 50-day moving average of $93.83 and a 200 day moving average of $91.23. The firm has a market cap of $29.59 billion, a PE ratio of 14.82, a PEG ratio of 5.67 and a beta of 1.00. Zoom Communications has a one year low of $70.70 and a one year high of $114.74.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.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. As a group, research analysts expect that Zoom Communications will post 4.21 earnings per share for the current year.

Insider Transactions at Zoom Communications

In other news, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $90.80, for a total value of $770,801.20. Following the completion of the sale, the chief financial officer owned 35,452 shares of the company’s stock, valued at approximately $3,219,041.60. The trade was a 19.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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. Also, insider Velchamy Sankarlingam sold 7,644 shares of the company’s stock in a transaction dated Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total transaction of $703,095.12. Following the completion of the transaction, the insider owned 148,403 shares in the company, valued at $13,650,107.94. This trade represents a 4.90% 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. In the last 90 days, insiders sold 56,155 shares of company stock valued at $5,654,761. Corporate insiders own 8.83% of the company’s stock.

Zoom Communications News Roundup

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

• Positive Sentiment: Analysts remain constructive ahead of earnings. Needham highlighted Zoom’s potential, while BTIG reaffirmed a Buy rating and set a $125 price target, implying meaningful upside from recent levels. Needham positive on Zoom ahead of Q2 results Zoom analyst forecasts ahead of earnings
• Positive Sentiment: Zoom’s AI initiatives are a key potential catalyst, with investors watching adoption of AI-powered products and the company’s reported investment in Anthropic. A continued streak of revenue beats could reinforce the view that Zoom is undervalued relative to its growth opportunities. Why Zoom results could put its AI push in focus Zoom is cheap ahead of Q2 earnings
• Neutral Sentiment: Cantor Fitzgerald maintained a Neutral rating with a $104 price target, suggesting limited near-term upside and a cautious stance ahead of the report. Cantor Fitzgerald rating update
• Neutral Sentiment: Zoom shares have been firm relative to their longer-term moving averages, while broader mid-cap strength may provide some market support. However, the earnings release is likely to dominate trading in the near term. Zoom steps forward as midcaps firm near records
• Negative Sentiment: Analysts are also warning that customer churn could offset AI-related optimism. Investors will focus on retention, enterprise demand, guidance and management’s explanation of competitive pressures. Zoom Q2 preview and customer churn caution

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Advocate Investing Services LLC acquired a new stake in shares of Zoom Communications in the fourth quarter valued at approximately $26,000. Strive Financial Group LLC bought a new position in Zoom Communications during the 4th quarter worth $27,000. Towarzystwo Funduszy Inwestycyjnych PZU SA increased its stake 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 period. Triumph Capital Management acquired a new position in Zoom Communications in the 3rd quarter valued at $50,000. Finally, UMB Bank n.a. lifted its position in shares of Zoom Communications by 1,626.3% during the 4th quarter. UMB Bank n.a. now owns 656 shares of the company’s stock valued at $57,000 after acquiring an additional 618 shares during the period. Institutional investors and hedge funds 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.