# Zoom Communications, Inc. (ZM)

> Source: Nexqual · https://nexqual.com/ZM · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Zoom Communications, Inc. (ZM), nexqual.com/ZM" · informational, not investment advice.

**Price:** USD 96.2 (-3.26% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 99.44 · day 95.41–100.65 · 52w 70.7–114.74 · market cap $28.1B · NMS

## Key facts
- Last four reported quarters (through Jul 31, 2026): revenue $4.99B, net income $3.26B (65.2% margin), free cash flow $1.93B (SEC filings).
- Valuation: P/E 8.6x (avg 24.4x at the last 3 fiscal year-ends).
- 1 of 80 tracked superinvestors hold ZM (13F, Q2 2026): 1 new, 0 added, 0 reduced, 0 unchanged.
- Analysts: Buy (mean 2.37 on a 1–5 scale) (30 analysts), mean target USD 118.58 (range 79–135).
- Total return with dividends: 1Y +16.2% vs S&P 500 +14.9%; 5Y -65.3% vs S&P 500 +80.3%.
- Next earnings: 2026-11-24, EPS estimate USD 1.49, revenue estimate $1.28B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $4.10B | $4.39B | $4.53B | $4.67B | $4.87B | $4.99B |
| Gross profit | $3.05B | $3.29B | $3.45B | $3.54B | $3.75B | — |
| Operating income | $1.06B | $245M | $525M | $813M | $1.12B | $1.19B |
| Net income | $1.38B | $104M | $637M | $1.01B | $1.90B | $3.26B |
| EPS (diluted) | $4.50 | $0.34 | $2.07 | $3.21 | $6.18 | — |
| Free cash flow | $1.47B | $1.19B | $1.47B | $1.81B | $1.92B | $1.93B |
| Gross margin | 74.3% | 74.9% | 76.2% | 75.8% | 77.0% | — |
| Operating margin | 25.9% | 5.6% | 11.6% | 17.4% | 23.1% | 23.7% |
| Net margin | 33.6% | 2.4% | 14.1% | 21.7% | 39.0% | 65.2% |
| Revenue growth | +54.6% | +7.1% | +3.1% | +3.1% | +4.4% | — |
| Cash + short-term investments | $5.42B | $5.41B | $6.96B | $7.79B | $7.82B | — |
Fiscal years end Jan. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jul 31, 2026)
P/E 8.6x · P/S 5.6x · P/FCF 14.6x · P/B 2.5x · FCF yield 6.86% · Earnings yield 11.60% · Buyback yield (TTM) 5.20%
P/E at fiscal year-ends: Jan 2026 14.9x, Jan 2025 27.1x, Jan 2024 31.3x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold ZM. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Torray Funds |  | 0.29% | $2.1M | New position |

## Analysts
Consensus Buy (mean 2.37 on a 1–5 scale), 30 analysts; mean target USD 118.58 (low 79, high 135).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | Needham | Reiterated | Buy | $130 |
| 2026-10-21 | UBS | Target lowered | Neutral | $115 → $112 |
| 2026-10-21 | RBC Capital | Reiterated | Outperform | $130 |
| 2026-10-21 | Rosenblatt | Maintained | Buy | $130 |
| 2026-10-21 | BTIG | Reiterated | Buy | $125 |
| 2026-10-21 | Cantor Fitzgerald | Reiterated | Neutral | $104 |
| 2026-10-21 | Oppenheimer | Upgrade | Perform → Outperform | $130 |
| 2026-08-26 | Morgan Stanley | Target raised | Equal-Weight | $105 → $107 |
| 2026-08-26 | Jefferies | Target lowered | Buy | $118 → $116 |
| 2026-08-26 | RBC Capital | Reiterated | Outperform | $130 |
| 2026-08-26 | Citizens | Reiterated | Market Perform |  |
| 2026-08-26 | Keybanc | Reiterated | Sector Weight |  |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +16.2% | -65.3% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +16.3% | -19.1% |
| Volatility (annualized) | 44.6% | 41.4% |
| Max drawdown | -25.9% (Jun 2026→Jun 2026) | -79.7% (Oct 2021→Aug 2024) |

## Peers (Software - Application)
BSP (Bending Spoons S.p.A.) USD 45.69 +3.54% · PTC (PTC Inc.) USD 194 -0.20% · SSNC (SS&C Technologies Holdings, Inc) USD 89.54 +2.81% · PAYX (Paychex, Inc.) USD 118.81 +5.61% · ROP (Roper Technologies, Inc.) USD 436.23 +9.73% · DT (Dynatrace, Inc.) USD 63.37 -2.18%

## More
Full page: https://nexqual.com/ZM · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in ZM's own 10-K filed 2026-02-27 (https://www.sec.gov/Archives/edgar/data/1585521/000158552126000030/zm-20260131.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Oracle (ORCL) | "We also utilize cloud hosting services such as Amazon Web Services and Oracle Cloud for the hosting of certain critical aspects of our business and Microsoft Azure for limited customer-specified managed services." |
| Partner | Alphabet (Google) (GOOGL) | "We also have integrations with Atlassian, Dropbox, Google, Microsoft, Salesforce, Slack, and a variety of other productivity, collaboration, data management, and security vendors." |
| Partner | OpenAI | "Our federated AI approach leverages the best of both our proprietary AI and industry-leading models from partners like OpenAI and Anthropic." |
| Partner | Anthropic | "Our federated AI approach leverages the best of both our proprietary AI and industry-leading models from partners like OpenAI and Anthropic." |
| Partner | Salesforce (CRM) | "We also have integrations with Atlassian, Dropbox, Google, Microsoft, Salesforce, Slack, and a variety of other productivity, collaboration, data management, and security vendors." |
| Competitor | Microsoft (MSFT) | "We face competition from legacy web-based meeting services providers, including Cisco Webex and GoTo, bundled productivity suite providers with communications offerings, including Microsoft 365 (with Teams) and Google Wo…" |
| Competitor | Amazon (AMZN) | "We face competition from legacy web-based meeting services providers, including Cisco Webex and GoTo, bundled productivity suite providers with communications offerings, including Microsoft 365 (with Teams) and Google Wo…" |
| Competitor | Apple (AAPL) | "We face competition from legacy web-based meeting services providers, including Cisco Webex and GoTo, bundled productivity suite providers with communications offerings, including Microsoft 365 (with Teams) and Google Wo…" |
| Competitor | Cisco (CSCO) | "We face competition from legacy web-based meeting services providers, including Cisco Webex and GoTo, bundled productivity suite providers with communications offerings, including Microsoft 365 (with Teams) and Google Wo…" |
| Competitor | Meta Platforms (META) | "We face competition from legacy web-based meeting services providers, including Cisco Webex and GoTo, bundled productivity suite providers with communications offerings, including Microsoft 365 (with Teams) and Google Wo…" |

## Revenue by region (quarter ended 2026-07-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Americas | $923.5M | 72.3% | +5.7% |
| Europe, Middle East, and Africa (“EMEA”) | $199.1M | 15.6% | +2.2% |
| Asia Pacific (“APAC”) | $154.6M | 12.1% | +4.2% |
| Total revenue | $1.28B | 100% | — |

## Company outlook (8-K filed 2026-08-25)

- "Financial Outlook: Zoom is providing the following guidance for its third quarter of fiscal year 2027 and updating its guidance for full fiscal year 2027. • Third Quarter Fiscal Year 2027: Total revenue is expected to be between $1.275 billion and $1.280 billion and revenue in constant currency is expected to be between $1.275 billion and $1.280 billion."
- "Non-GAAP income from operations is expected to be between $510.0 million and $515.0 million."
- "Non-GAAP diluted EPS is expected to be between $1.46 and $1.48 with approximately 301 million weighted average shares outstanding. • Full Fiscal Year 2027: Total revenue is expected to be between $5.085 billion and $5.095 billion and revenue in constant currency is expected to be between $5.071 billion and $5.081 billion."
- "Non-GAAP income from operations is expected to be between $2.065 billion and $2.075 billion."

Analysts expect $1.28B for the current quarter, +0.1% vs the guidance midpoint $1.28B. Source: https://www.sec.gov/Archives/edgar/data/1585521/000158552126000119/zm-20260731ex991.htm

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-10-31) | $1.49 | $1.50 | -1.0% | $1.28B | 25 |
| Next quarter (ends 2027-01-31) | $0.96 | $0.90 | +6.4% | $1.30B | 7 |
| Current fiscal year (ends 2027-01-31) | $6.14 | $6.08 | +1.0% | $5.09B | 28 |
| Next fiscal year (ends 2028-01-31) | $6.34 | $6.30 | +0.7% | $5.32B | 28 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-27 (includes earnings 2026-11-24): ±12.4%; earnings reaction alone ±6.1%; last 8 reports averaged ±8.6%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-30 | 7 | 44.3% | ±5.3% |
| 2026-11-06 | 14 | 45.0% | ±7.3% |
| 2026-11-13 | 21 | 42.9% | ±8.5% |
| 2026-11-20 | 28 | 43.3% | ±9.8% |
| 2026-11-27 | 35 | 49.1% | ±12.4% |
| 2026-12-04 | 42 | 48.2% | ±13.3% |
| 2026-12-18 | 56 | 47.7% | ±15.1% |
| 2027-01-15 | 84 | 44.2% | ±17.0% |