Zoom Communications (NASDAQ:ZM) Reaches New 1-Year High on Better-Than-Expected Earnings

Zoom Communications, Inc. (NASDAQ:ZM) reached a new 52-week high on Friday following a stronger than expected earnings report. The company traded as high as $111.80 and last traded at $108.0030, with a volume of 1244778 shares traded. The stock had previously closed at $96.75.

The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.41 by $0.14. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter in the previous year, the firm earned $1.43 earnings per share. The business’s revenue was up 5.5% on a year-over-year basis. 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.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: Zoom beat Q1 earnings and revenue expectations, with EPS of $1.55 versus $1.41 expected and revenue of $1.24 billion versus $1.22 billion forecast, signaling continued operational strength.
• Positive Sentiment: The company raised its full-year outlook, with management pointing to stronger demand for AI features and enterprise usage, which suggests improving growth momentum. Reuters: Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Several firms turned more constructive on the stock after earnings: Needham raised its target to $130 and reiterated Buy, BTIG lifted its target to $125 and Buy, Mizuho raised its target to $120 and Outperform, and Benchmark increased its target to $121 and Buy.
• Positive Sentiment: KeyCorp upgraded Zoom from Underweight to Sector Weight, adding to the improving analyst sentiment around the shares.
• Neutral Sentiment: Piper Sandler raised its price target to $107 but kept a Neutral rating, indicating limited near-term conviction despite the improved outlook.

Analyst Upgrades and Downgrades

ZM has been the subject of a number of research analyst reports. Citigroup raised their price objective on shares of Zoom Communications from $106.00 to $122.00 and gave the stock a “buy” rating in a 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 target price for the company in a research report on Thursday, February 5th. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday. BTIG Research lifted their price target on shares of Zoom Communications from $100.00 to $125.00 and gave the stock a “buy” rating in a report on Friday. Finally, Benchmark upped their price objective on Zoom Communications from $115.00 to $121.00 and gave the company a “buy” rating in a research note on Thursday. Fourteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $104.20.

Insider Buying and Selling at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of the stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $85.44, for a total transaction of $653,188.80. Following the completion of the transaction, the insider owned 141,971 shares in the company, valued at $12,130,002.24. This trade represents a 5.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 5,274 shares of Zoom Communications stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the completion of the transaction, the director owned 142,882 shares of the company’s stock, valued at $15,228,363.56. The trade was a 3.56% decrease in their position. 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. Over the last 90 days, insiders sold 144,329 shares of company stock valued at $12,364,989. Insiders own 11.51% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Leigh Baldwin & CO. LLC boosted its holdings in shares of Zoom Communications by 16.5% in the first quarter. Leigh Baldwin & CO. LLC now owns 5,732 shares of the company’s stock worth $461,000 after acquiring an additional 810 shares during the period. Bank of America Corp DE grew its position in shares of Zoom Communications by 50.5% in the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock valued at $142,108,000 after purchasing an additional 592,899 shares in the last quarter. Edgestream Partners L.P. bought a new stake in shares of Zoom Communications during the 1st quarter valued at $2,689,000. Bull Harbor Capital LLC bought a new stake in shares of Zoom Communications during the 1st quarter valued at $939,000. Finally, Atreides Management LP purchased a new stake in Zoom Communications during the 1st quarter worth about $105,761,000. Institutional investors own 66.54% of the company’s stock.

Zoom Communications Trading Up 11.0%

The business has a fifty day moving average of $88.14 and a 200-day moving average of $86.59. The firm has a market cap of $31.66 billion, a PE ratio of 17.32, a PEG ratio of 5.69 and a beta of 1.00.

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.