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ZMZoom Communications, Inc.
$85.68$25.1B
Overview & Verdict
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ZM logoZoom Communications, Inc.(ZM)Earnings, Financials & Key Ratios

ZM•NASDAQ
$85.68
13.9× P/E·Price updated Jul 7, 2026
SectorTechnologyIndustryApplication SoftwareSub-IndustryCommunications and contact center software
AboutZoom Communications, Inc. engages in the provision of a communications and collaboration platform. It operates through the following geographical segments: Americas, Asia Pacific, and Europe, Middle East, and Africa. The company was founded by Eric S. Yuan in 2011 and is headquartered in San Jose, CA.Show more
  • Revenue$4.87B+4.4%
  • EBITDA$1.26B+34.2%
  • Net Income$1.9B+88.1%
  • EPS (Diluted)6.18+92.5%
  • Gross Margin77.02%+1.6%
  • EBITDA Margin25.81%+28.6%
  • Operating Margin23.08%+32.4%
  • Net Margin39.03%+80.2%
  • ROE20.28%+70.1%

ZM Price & Volume

Zoom Communications, Inc. (ZM) stock price & volume — 10-year historical chart

Loading chart...

Mature Growth Profile Supports Robust Capital Returns

Investment Thesis • Updated 2027Q1

VerdictNeutral
Growth:Stable
Profitability:Moderate
Financial:Fortress
Cash Flow:Robust
Primary Risk:Vendor consolidation and saturation

Key Thesis Takeaways

  • Zoom has transitioned into a mature, cash-generative software entity characterized by a fortress balance sheet and disciplined capital allocation, despite facing significant top-line growth deceleration to the 5.5% range.
  • While the company maintains a competitive edge through its 77.9% gross margin, investors should monitor the ongoing risks of vendor consolidation and the persistent impact of $179 million in quarterly stock-based compensation.
  • The firm's ability to sustain its current valuation depends on its capacity to defend market share against bundled enterprise alternatives while leveraging its $890.9 million cash position for strategic buybacks.

Verdict Logic

while the company trades at an attractive 13.99 P/E ratio, the deceleration of revenue growth to 5.5% and the competitive threat of vendor consolidation warrant a cautious approach.

ZM Growth Metrics

Zoom Communications, Inc. (ZM) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR

Revenue CAGR

10 Years-
5 Years12.92%
3 Years3.49%
TTM4.98%

Profit CAGR

10 Years-
5 Years23.1%
3 Years163.63%
TTM97.54%

EPS CAGR

10 Years-
5 Years22.39%
3 Years162.93%
TTM103.96%

Return on Capital

10 Years9.16%
5 Years10.73%
3 Years9.48%
Last Year11.8%

ZM Recent Earnings

Zoom Communications, Inc. (ZM) EPS & revenue vs analyst estimates — last 4 quarters

Full history →
●Beat EPS 11/12 qtrs (92%)●Beat Revenue 12/12 qtrs (100%)
Q2 2026Latest
May 21, 2026
Metric
Actual
Est
EPS
$1.55+9.2%
$1.42
Rev
$1.2B+1.2%
$1.2B
Q1 2026
Feb 25, 2026
Metric
Actual
Est
EPS
$1.44-3.4%
$1.49
Rev
$1.2B+1.0%
$1.2B
Q4 2025
Nov 24, 2025
Metric
Actual
Est
EPS
$1.52+5.6%
$1.44
Rev
$1.2B+1.3%
$1.2B
Q3 2025
Aug 21, 2025
Metric
Actual
Est
EPS
$1.53+10.9%
$1.38
Rev
$1.2B+1.6%
$1.2B
QuarterDateEPS (Act vs Est)Revenue (Act vs Est)
Q2 2026LatestMay 21, 2026
$1.55vs $1.42+9.2%
$1.2Bvs $1.2B+1.2%
Q1 2026Feb 25, 2026
$1.44vs $1.49-3.4%
$1.2Bvs $1.2B+1.0%
Q4 2025Nov 24, 2025
$1.52vs $1.44+5.6%
$1.2Bvs $1.2B+1.3%
Q3 2025Aug 21, 2025
$1.53vs $1.38+10.9%
$1.2Bvs $1.2B+1.6%
Based on last 12 quarters of dataView full earnings history →

Latest ZM News

Recent stock market news and headlines for Zoom Communications, Inc. (ZM)

Seeking Alpha·19h ago
Zoom: There's A Lot Of Value Here, But Risks Too

Zoom (ZM) earns a buy rating, offering strong fundamentals and cash generation despite competitive and AI-driven risks. ZM's balance sheet is robust, with $7.7B in cash and investments, plus a $1.3B Anthropic stake supporting its $25B market cap. Valuation appears attractive: ZM trades at 12.8x TTM GAAP PE, ~42% net income margin, and high free cash flow yields.

Seeking Alpha·1 day ago
Zoom Communications: Zoom In To See How Cheap The Stock Is

Zoom Communications is rated a 'buy' due to undervaluation, robust AI-driven growth, and a pristine balance sheet. ZM's enterprise revenue grew 7.2%, with large customers rising 8% and non-GAAP operating margin reaching 41.1%. AI Companion adoption surged 184% YoY, driving platform expansion and prompting management to raise full-year guidance.

GlobeNewsWire·6 days ago
Zoom to Acquire Common Room, Bringing Buyer Intelligence to its AI Revenue Platform

SAN JOSE, Calif., July 02, 2026 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced that it has entered into a definitive agreement to acquire Common Room, an AI-native Go-to-Market (GTM) intelligence platform that turns fragmented signals and siloed customer data into complete, person-level buyer intelligence and activates it with AI agents.

Zacks Investment Research·6 days ago
FIVN vs. ZM: Which Stock Should Value Investors Buy Now?

Investors interested in Internet - Software stocks are likely familiar with Five9 (FIVN) and Zoom Communications (ZM). But which of these two stocks is more attractive to value investors?

GuruFocus·Jun 26, 2026
Zoom Communications Inc (ZM) Shares Surge 4.3% -- What GF Score of 85 Tells Investors

On June 26, 2026, Zoom Communications Inc (ZM) shares rose 4.3% to a current price of $86.48. Despite today's positive performance, the stock has experienced a

Peers Comparison

Key metrics vs top competitors for Zoom Communications, Inc. (ZM)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
ZM logoZMZoom Communications, Inc.Current
$85.68$25.12B13.864.36%39.03%20.28%—
MSFT logoMSFTMicrosoft Corporation
$388.84$2.89T28.5114.93%39.34%33.13%—
GOOGL logoGOOGLAlphabet Inc.
$367.03$4.44T33.9515.13%37.91%38.98%—
CSCO logoCSCOCisco Systems, Inc.
$111.79$440.61B43.845.3%19.69%25.14%—
RNG logoRNGRingCentral, Inc.
$40.64$3.57B84.674.78%3.31%——
NICE logoNICENICE Ltd.
$98.63$5.98B10.207.68%17.58%13.98%—

Compare ZM vs Peers

Zoom Communications, Inc. (ZM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs MSFT

Most directly comparable listed peer for ZM.

Scale Benchmark

vs NVDA

Larger-name benchmark to compare ZM against a more recognizable public peer.

Peer Set

Compare Top 5

vs MSFT, GOOGL, CSCO, RNG

ZM SEC Filings & Documents

Zoom Communications, Inc. (ZM) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

May 21, 2026·SEC

Material company update

Apr 2, 2026·SEC

Material company update

Feb 25, 2026·SEC

10-K Annual Reports

2
FY 2026

Feb 27, 2026·SEC

FY 2025

Feb 28, 2025·SEC

10-Q Quarterly Reports

6
FY 2026

May 22, 2026·SEC

FY 2025

Nov 25, 2025·SEC

FY 2025

Aug 22, 2025·SEC

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ZM Frequently Asked Questions

Zoom Communications, Inc. (ZM) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Zoom Communications, Inc.'s revenue?

Zoom Communications, Inc. (ZM) reported $4.93B in revenue for fiscal year 2026. This represents a 8011% increase from $60.8M in 2017.

How fast is Zoom Communications, Inc. growing?

Zoom Communications, Inc. (ZM) grew revenue by 4.4% over the past year. Growth has been modest.

Is ZM profitable?

Yes, Zoom Communications, Inc. (ZM) is profitable, generating $2.07B in net income for fiscal year 2026 (39.0% net margin).

Dividend & Returns
What is ZM's return on equity?

Zoom Communications, Inc. (ZM) has a return on equity (ROE) of 20.3%. This is excellent, indicating efficient use of shareholder capital.

What is Zoom Communications, Inc.'s free cash flow?

Zoom Communications, Inc. (ZM) generated $1.96B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in ZM back in 2017?

Total return calculator · dividends reinvested · 9+ years of data

See returns →