Stocks · Technology · Software - Application

Zoom Communications, Inc. ZM

$92.88 -0.98% Close, Oct 2, 2026 · NASDAQ · Market cap $27.24B

Inexpensive vs sectorLow risk

Next earnings report: Nov 23, 2026

Scroll or pinch to zoom, drag to move. Daily prices adjusted for splits. Markers: E = earnings (green beat, red miss), S = split, D = dividend.

Three things to know

  1. Diluted EPS over the last four quarters was $10.78, up 184.1% year over year.
  2. At 8.6× trailing earnings, the shares trade at the lowest P/E of the company's past five years.
  3. Revenue over the last four quarters was $4.99B, up 5.0% from a year earlier.

PromtFinance scores

Each score is a percentile within the Technology sector (0–100). Under each score: how the stock ranks in its sector on every component. As of Oct 5, 2026.

Growth45Neutral

How fast revenue, earnings and cash flow are growing.

  • Revenue growth (TTM, YoY)Bottom 28%
  • EPS growth (TTM, YoY)Top 9%
  • FCF growth (TTM, YoY)Bottom 34%
  • Revenue growth, 3-year CAGRBottom 42%
  • Revenue growth accelerationBottom 44%
Quality56Neutral

Returns on capital, margins, earnings quality and balance-sheet strength.

  • Return on invested capitalTop 34%
  • Gross marginTop 16%
  • Operating marginTop 12%
  • Cash conversion (OCF / net income)Bottom 10%
  • Accruals (lower is better)Bottom 4%
  • Net debt / EBITDA (lower is better)Top 40%
Value93Exceptional

How cheap the shares are relative to earnings, cash flow and their own history.

  • Earnings yieldTop 3%
  • Free-cash-flow yieldTop 22%
  • EBITDA / enterprise valueTop 3%
  • Sales / enterprise valueBottom 41%
  • P/E vs own 5-year history (lower is better)Top 5%
Momentum56Neutral

Strength and persistence of the price trend, including versus the S&P 500.

  • 12-month return excluding last monthTop 40%
  • 6-month returnBottom 40%
  • 1-year return vs S&P 500Top 43%
  • Distance from 52-week highTop 32%
  • Trend checklist (0–4)Top 44%
Revisions17Very weak

Earnings surprises and analyst sentiment (estimate-revision history is being collected).

  • Average EPS surprise, last 4 quartersBottom 33%
  • Consecutive EPS beatsBottom 44%
  • Share of analysts rating BuyBottom 16%
  • Upside to consensus price targetTop 49%
Stability95Exceptional

Low volatility, shallow drawdowns, low market sensitivity and modest leverage.

  • Volatility, 60 days (lower is better)Top 20%
  • Maximum drawdown, 3 yearsTop 1%
  • Beta vs S&P 500 (lower is better)Top 21%
  • Net debt / EBITDA (lower is better)Top 40%

What changed

Latest four quarters versus the same period a year earlier (growth: versus one quarter earlier).

MeasureBeforeNow
Revenue growth (YoY)5.0%5.0%↑
EPS growth (YoY)104.0%184.1%↑
Gross margin76.4%77.3%↑
Operating margin20.4%23.7%↑
FCF margin38.8%38.6%↓

Fundamental momentum

MeasureNow (TTM)Year / quarter beforeSector rank
Revenue growth (TTM, YoY)5.0%5.0%↑Bottom 28%
EPS growth (TTM, YoY)184.1%104.0%↑Top 9%
Gross margin77.3%76.4%↑Top 16%
Operating margin23.7%20.4%↑Top 12%
Net margin65.2%25.0%↑—
Free-cash-flow margin38.6%38.8%↓—
Return on invested capital8.0%—Top 34%
Revenue growth, 3-year CAGR3.5%—Bottom 42%

Quality of earnings and balance sheet

Cash conversion (OCF / net income)Above 1× means profits are backed by cash.
0.61×
Accruals (net income − OCF) / assetsLower is better; high accruals can signal weaker earnings quality.
9.2%
Stock-based compensation / revenueA cost to shareholders through dilution.
14.6%
Receivables growth vs revenue growthReceivables growing much faster than sales can be a warning.
-1.9 pp
Net debt / EBITDABelow 1× is conservative; above 3× is high leverage.
-0.20×

Shareholder returns

Dividend yield (dividends paid, TTM)
0.00%
Net buyback yield (TTM)
5.00%
Shareholder yield
5.00%
Share count change, 1 year
-2.7%
Share count change, 3-year CAGR
-0.6%

Shareholder yield = dividends + net buybacks over the last four quarters, divided by market cap.

Based on the four quarters through Jul 31, 2026 (filed Aug 26, 2026).

Earnings and expectations

Earnings momentum

Consecutive EPS beats
2
Beats in the last 8 reports
7 of 8
Average EPS surprise, last 4
+4.0%
Average 2-day reaction, last 8
-0.8%
Positive 20 days after report
2 of 8

Analysts

Consensus price target
$118.08
Target vs current price
+27.1%
Analysts with a rating
49
Share rating Buy or Strong Buy
39%
Consensus rating
Hold

How the stock reacted to recent reports

Report dateEPS surprise2 days5 days20 days60 days
Aug 25, 2026+4.7%-3.7%-7.8%-13.2%—
May 21, 2026+9.2%-2.7%+1.0%-13.1%+6.2%
Feb 25, 2026-3.4%-2.4%-16.0%-13.2%+13.6%
Nov 24, 2025+5.6%-0.0%+8.0%+14.4%+14.8%
Aug 21, 2025+10.9%+1.4%+12.2%+20.3%+16.5%
May 21, 2025+9.2%-1.0%-4.1%-6.8%-12.0%
Feb 24, 2025+8.5%-1.7%-10.7%-7.9%+1.0%
Nov 25, 2024+5.3%+3.7%-3.2%-0.7%-5.6%

Returns from the close before each report. Past reactions do not determine future ones.

Earnings history

Report dateEPSEstimateSurpriseRevenue
Aug 25, 2026$1.55$1.48+4.7%$1.28B
May 21, 2026$1.55$1.42+9.2%$1.24B
Feb 25, 2026$1.44$1.49-3.4%$1.25B
Nov 24, 2025$1.52$1.44+5.6%$1.23B
Aug 21, 2025$1.53$1.38+10.9%$1.22B
May 21, 2025$1.43$1.31+9.2%$1.17B
Feb 24, 2025$1.41$1.30+8.5%$1.18B
Nov 25, 2024$1.38$1.31+5.3%$1.18B

Valuation in context

MultipleNow5-year median5-year percentileSector rank (cheapness)
P/E (trailing)8.6×25.1×0thTop 3%
P/E (forward)15.1×———
EV / EBITDA6.0×——Top 3%
EV / Sales5.28×——Bottom 41%
Free-cash-flow yield7.07%——Top 22%
Earnings yield11.61%——Top 3%

P/E over the past five years

Range 8.7× – 221.3× since Jul 31, 2021. Each point: price on the filing date divided by trailing-twelve-month EPS known then.

What moved the stock over the past year

Price return, 1 year
+14.3%
Earnings per share growth (TTM)
+184.1%
Change in P/E multiple
-60.0%

Most of the move came from earnings growth.

Technical state

Trend checklist

  • ✓ Price above 20-day average
  • ✗ Price above 50-day average
  • ✓ Price above 200-day average
  • ✓ 50-day average above 200-day
  • ✓ MACD histogram positive

Trend quality

Days above the 50-day average
0
Days above the 200-day average
2
50-day average slope (20 days)
+1.8%
200-day average slope (20 days)
+0.9%
Distance from 50-day average
-4.5%
Distance from 200-day average
+1.9%
RSI (14)
48.6
Relative volume
0.67×

Risk and drawdowns

Volatility, 60 days (annualized)
41.4%
Volatility vs own 5-year history
55th percentile · Normal for this stock
Beta vs S&P 500 (2 years, weekly)
0.99
Correlation with S&P 500
0.40
Current drawdown from 1-year high
-17.0%
Maximum drawdown, 3 years
-25.9%

Largest declines in the past six years

From peakTo lowDeclineLengthRecovery
Oct 19, 2020Aug 12, 2024-90.3%958 daysNot yet recovered

Declines of 10% or more from a closing high, measured on daily closes.

Financial statements

Market cap
$27.24B
P/E (TTM)
8.6
EPS, diluted (TTM)
$10.78
Revenue (TTM)
$4.99B
52-week range
$70.70 – $114.74
FY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$4.10B$4.39B$4.53B$4.67B$4.87B
Gross profit$3.05B$3.29B$3.45B$3.54B$3.75B
Operating income$1.06B$245.4M$525.3M$813.3M$1.12B
Net income$1.38B$103.7M$637.5M$1.01B$1.90B
EPS (diluted)$4.50$0.34$2.07$3.21$6.18
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026Q4 2026Q1 2027Q2 2027
Revenue$1.18B$1.18B$1.17B$1.22B$1.23B$1.25B$1.24B$1.28B
Net income$207.1M$367.9M$254.6M$358.6M$612.9M$674.1M$425.7M$1.54B
EPS (diluted)$0.66$1.16$0.81$1.16$2.00$2.22$1.42$5.14
FY 2022FY 2023FY 2024FY 2025FY 2026
Operating cash flow$1.61B$1.29B$1.60B$1.95B$1.99B
Capital expenditure-$145.6M-$115.1M-$127.0M-$136.6M-$65.0M
Free cash flow$1.46B$1.18B$1.47B$1.81B$1.92B
Dividends paid$0$0$0$0$0
Net share buybacks$73.7M-$937.7M$64.3M-$1.04B-$1.56B

Cash outflows are shown as negative numbers.

Cash and short-term investments
$7.25B
Total assets
$13.59B
Total liabilities
$2.28B
Total debt
$60.3M
Net debt
-$871.7M
Shareholders’ equity
$11.30B

As of Jul 31, 2026 (filed Aug 26, 2026).

Short interest

Shares sold short
7,058,003
Days to cover
2.59
Change vs previous report
-1.0%

FINRA short interest, settlement date Sep 15, 2026.