William Blair Issues Optimistic Estimate for ZM Earnings

Zoom Video Communications, Inc. (NASDAQ:ZM - Free Report) - Equities research analysts at William Blair lifted their Q1 2026 earnings per share (EPS) estimates for shares of Zoom Video Communications in a research report issued on Tuesday, February 25th. William Blair analyst A. Bhatia now expects that the company will earn $0.61 per share for the quarter, up from their prior estimate of $0.59. The consensus estimate for Zoom Video Communications' current full-year earnings is $2.93 per share. William Blair also issued estimates for Zoom Video Communications' Q1 2026 earnings at $0.61 EPS, Q2 2026 earnings at $0.66 EPS, Q2 2026 earnings at $0.66 EPS, Q3 2026 earnings at $0.68 EPS, Q3 2026 earnings at $0.68 EPS, Q4 2026 earnings at $0.68 EPS, Q4 2026 earnings at $0.68 EPS, FY2026 earnings at $2.63 EPS, FY2026 earnings at $2.63 EPS, Q1 2027 earnings at $0.64 EPS, Q1 2027 earnings at $0.64 EPS, Q2 2027 earnings at $0.66 EPS, Q3 2027 earnings at $0.69 EPS, Q3 2027 earnings at $0.69 EPS, Q4 2027 earnings at $0.67 EPS, FY2027 earnings at $2.66 EPS and FY2027 earnings at $2.66 EPS.

A number of other equities research analysts also recently weighed in on the company. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $87.00 price objective on shares of Zoom Video Communications in a research report on Tuesday, February 25th. Needham & Company LLC reaffirmed a "hold" rating on shares of Zoom Video Communications in a research report on Tuesday, February 25th. Hsbc Global Res raised Zoom Video Communications to a "strong-buy" rating in a research report on Tuesday, November 26th. Piper Sandler raised 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. Finally, Royal Bank of Canada reaffirmed an "outperform" rating and set a $95.00 price objective on shares of Zoom Video Communications in a research report on Tuesday, November 26th. Fifteen analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $90.05.

Zoom Video Communications Stock Performance

ZM stock traded up $1.98 during trading on Friday, reaching $75.68. 1,029,419 shares of the company traded hands, compared to its average volume of 2,654,011. Zoom Video Communications has a 12 month low of $55.06 and a 12 month high of $92.80. The business has a 50 day simple moving average of $82.30 and a 200 day simple moving average of $77.04. The company has a market capitalization of $23.20 billion and a price-to-earnings ratio of 25.22.

Hedge Funds Weigh In On Zoom Video Communications

Several institutional investors and hedge funds have recently modified their holdings of the business. Global X Japan Co. Ltd. increased its stake in Zoom Video Communications by 127.5% during the 4th quarter. Global X Japan Co. Ltd. now owns 339 shares of the company's stock worth $28,000 after buying an additional 190 shares in the last quarter. Avior Wealth Management LLC increased its stake in Zoom Video Communications by 291.2% during the 4th quarter. Avior Wealth Management LLC now owns 356 shares of the company's stock worth $29,000 after buying an additional 265 shares in the last quarter. Parkside Financial Bank & Trust increased its stake in Zoom Video Communications by 277.4% during the 4th quarter. Parkside Financial Bank & Trust now owns 351 shares of the company's stock worth $29,000 after buying an additional 258 shares in the last quarter. Raiffeisen Bank International AG purchased a new stake in Zoom Video Communications during the 4th quarter worth approximately $30,000. Finally, Colonial Trust Co SC purchased a new stake in Zoom Video Communications during the 4th quarter worth approximately $32,000. Hedge funds and other institutional investors own 66.54% of the company's stock.

Insider Buying and Selling

In related news, CEO Eric S. Yuan sold 83,332 shares of Zoom Video Communications stock in a transaction dated Tuesday, February 4th. The stock was sold at an average price of $86.28, for a total value of $7,189,884.96. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Aparna Bawa sold 9,317 shares of Zoom Video Communications stock in a transaction dated Friday, January 10th. The shares were sold at an average price of $78.69, for a total value of $733,154.73. Following the completion of the transaction, the chief operating officer now owns 14,053 shares of the company's stock, valued at approximately $1,105,830.57. This represents a 39.87 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 382,242 shares of company stock valued at $31,230,938 over the last ninety days. Company insiders own 10.78% of the company's stock.

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.