Zoom Video Communications (NASDAQ:ZM) Issues Quarterly Earnings Results, Misses Estimates By $0.53 EPS

Zoom Video Communications (NASDAQ:ZM) announced its earnings results on Monday. The company reported $0.78 earnings per share for the quarter, missing the consensus estimate of $1.31 by ($0.53), Zacks reports. Zoom Video Communications had a net margin of 20.34% and a return on equity of 10.98%. Zoom Video Communications updated its FY 2026 guidance to 5.340-5.370 EPS and its Q1 2026 guidance to 1.290-1.310 EPS.

Zoom Video Communications Stock Down 1.7 %

NASDAQ ZM opened at $81.10 on Tuesday. The stock has a market cap of $24.86 billion and a PE ratio of 27.03. Zoom Video Communications has a fifty-two week low of $55.06 and a fifty-two week high of $92.80. The business has a 50 day moving average price of $83.13 and a two-hundred day moving average price of $76.55.

Analyst Upgrades and Downgrades

ZM has been the subject of several analyst reports. The Goldman Sachs Group boosted their target price on shares of Zoom Video Communications from $72.00 to $86.00 and gave the company a “neutral” rating in a research note on Tuesday, November 26th. Bank of America boosted their target price on shares of Zoom Video Communications from $75.00 to $90.00 and gave the company a “neutral” rating in a research note on Tuesday, November 26th. Evercore ISI raised shares of Zoom Video Communications from an “in-line” rating to an “outperform” rating and upped their price objective for the company from $70.00 to $115.00 in a research note on Tuesday, November 26th. Wells Fargo & Company raised shares of Zoom Video Communications from an “underweight” rating to an “equal weight” rating and upped their price objective for the company from $70.00 to $85.00 in a research note on Tuesday, January 7th. Finally, Sanford C. Bernstein upped their price objective on shares of Zoom Video Communications from $78.00 to $89.00 and gave the company a “market perform” rating in a research note on Tuesday, November 26th. Sixteen research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Zoom Video Communications has a consensus rating of “Hold” and an average target price of $89.48.

Insiders Place Their Bets

In other Zoom Video Communications news, insider Velchamy Sankarlingam sold 3,618 shares of the company’s stock in a transaction that occurred on Tuesday, December 10th. The stock was sold at an average price of $84.94, for a total value of $307,312.92. Following the transaction, the insider now directly owns 107,826 shares of the company’s stock, valued at $9,158,740.44. This represents a 3.25 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Eric S. Yuan sold 83,332 shares of the company’s stock in a transaction that occurred on Tuesday, February 4th. The shares were sold at an average price of $86.28, for a total value of $7,189,884.96. The disclosure for this sale can be found here. Insiders sold a total of 382,242 shares of company stock worth $31,230,938 in the last 90 days. 10.78% of the stock is owned by company insiders.

Zoom Video Communications Company Profile

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.