Zoom Communications (NASDAQ:ZM) Updates FY 2026 Earnings Guidance

Zoom Communications (NASDAQ:ZM) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 5.810-5.840 for the period, compared to the consensus earnings per share estimate of 5.585. The company issued revenue guidance of $4.8 billion-$4.8 billion, compared to the consensus revenue estimate of $4.8 billion. Zoom Communications also updated its Q3 2026 guidance to 1.420-1.44 EPS.

Analyst Ratings Changes

Several brokerages have weighed in on ZM. Royal Bank Of Canada increased their price objective on Zoom Communications from $95.00 to $100.00 and gave the company an “outperform” rating in a report on Friday. Cantor Fitzgerald reissued a “neutral” rating and set a $87.00 price objective on shares of Zoom Communications in a report on Thursday, May 22nd. William Blair reissued an “outperform” rating on shares of Zoom Communications in a report on Thursday, May 22nd. JMP Securities reissued a “market perform” rating on shares of Zoom Communications in a report on Friday. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 price target on shares of Zoom Communications in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Zoom Communications has a consensus rating of “Hold” and an average price target of $89.00.

Zoom Communications Stock Up 12.7%

NASDAQ ZM opened at $82.47 on Friday. The stock’s 50-day simple moving average is $75.08 and its two-hundred day simple moving average is $76.71. Zoom Communications has a twelve month low of $64.41 and a twelve month high of $92.80. The company has a market capitalization of $24.95 billion, a price-to-earnings ratio of 21.76, a PEG ratio of 19.15 and a beta of 0.68.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings results on Wednesday, May 21st. The company reported $1.43 earnings per share for the quarter, beating analysts’ consensus estimates of $1.30 by $0.13. Zoom Communications had a return on equity of 11.95% and a net margin of 24.99%.The business had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the business posted $1.35 earnings per share. The company’s revenue for the quarter was up 2.9% on a year-over-year basis. On average, equities analysts expect that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In other news, Director Jonathan Chadwick sold 25,000 shares of Zoom Communications stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $74.86, for a total value of $1,871,500.00. Following the transaction, the director owned 5,875 shares in the company, valued at approximately $439,802.50. The trade was a 80.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Eric S. Yuan sold 33,691 shares of Zoom Communications stock in a transaction dated Monday, July 14th. The stock was sold at an average price of $74.79, for a total value of $2,519,749.89. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 87,542 shares of company stock valued at $6,609,623. 11.51% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ZM. Geneos Wealth Management Inc. increased its holdings in Zoom Communications by 82.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after purchasing an additional 397 shares during the period. Sender Co & Partners Inc. purchased a new position in Zoom Communications during the 2nd quarter valued at about $203,000. IHT Wealth Management LLC purchased a new position in Zoom Communications during the 2nd quarter valued at about $208,000. Tower Research Capital LLC TRC increased its holdings in Zoom Communications by 412.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,837 shares of the company’s stock valued at $221,000 after purchasing an additional 2,283 shares during the period. Finally, Jump Financial LLC purchased a new position in Zoom Communications during the 2nd quarter valued at about $417,000. Hedge funds and other institutional investors own 66.54% of the company’s stock.

About Zoom Communications

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.