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

Zoom Video Communications (NASDAQ:ZM) announced its earnings results on Monday. The company reported $0.78 EPS for the quarter, missing analysts’ consensus estimates 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 Trading Down 1.7 %

Shares of Zoom Video Communications stock traded down $1.40 on Monday, hitting $81.10. The stock had a trading volume of 6,285,960 shares, compared to its average volume of 2,397,505. Zoom Video Communications has a 52-week low of $55.06 and a 52-week high of $92.80. The stock has a market cap of $24.86 billion and a price-to-earnings ratio of 27.03. The company’s 50 day moving average price is $83.18 and its 200 day moving average price is $76.37.

Insider Activity

In other Zoom Video Communications news, CEO Eric S. Yuan sold 83,332 shares of the business’s stock in a transaction that occurred on Tuesday, February 4th. The stock was sold at an average price of $86.28, for a total transaction of $7,189,884.96. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CAO Shane Crehan sold 1,412 shares of the business’s stock in a transaction that occurred on Friday, January 10th. The stock was sold at an average price of $78.69, for a total value of $111,110.28. Following the transaction, the chief accounting officer now owns 5,404 shares in the company, valued at $425,240.76. The trade was a 20.72 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 382,242 shares of company stock valued at $31,230,938. Insiders own 10.78% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on ZM shares. Evercore ISI raised Zoom Video Communications from an “in-line” rating to an “outperform” rating and upped their price target for the stock from $70.00 to $115.00 in a research note on Tuesday, November 26th. Stifel Nicolaus increased their target price on Zoom Video Communications from $70.00 to $90.00 and gave the stock a “hold” rating in a research note on Tuesday, November 26th. Scotiabank raised Zoom Video Communications to a “hold” rating in a research note on Tuesday, November 19th. The Goldman Sachs Group increased their price objective on Zoom Video Communications from $72.00 to $86.00 and gave the company a “neutral” rating in a research report on Tuesday, November 26th. Finally, Piper Sandler increased their price objective on Zoom Video Communications from $68.00 to $89.00 and gave the company a “neutral” rating in a research report on Tuesday, November 26th. Sixteen investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Zoom Video Communications has an average rating of “Hold” and an average target price of $89.48.

About Zoom Video 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.