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

Zoom Video Communications (NASDAQ:ZM) posted its quarterly 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 Stock Performance

Shares of ZM traded down $1.40 during mid-day trading on Monday, reaching $81.10. The company had a trading volume of 6,380,200 shares, compared to its average volume of 2,402,271. The firm has a 50-day moving average price of $83.18 and a 200 day moving average price of $76.37. Zoom Video Communications has a 52 week low of $55.06 and a 52 week high of $92.80. The company has a market capitalization of $24.86 billion and a price-to-earnings ratio of 27.03.

Analysts Set New Price Targets

Several equities analysts have recently commented on ZM shares. Barclays upped their price objective on shares of Zoom Video Communications from $70.00 to $85.00 and gave the company an “equal weight” rating in a research note on Wednesday, November 27th. Cantor Fitzgerald initiated coverage on Zoom Video Communications in a report on Friday, January 17th. They set a “neutral” rating and a $87.00 price target on the stock. JMP Securities reiterated a “market perform” rating on shares of Zoom Video Communications in a report on Tuesday, November 26th. Evercore ISI raised Zoom Video Communications from an “in-line” rating to an “outperform” rating and boosted their target price for the company from $70.00 to $115.00 in a research note on Tuesday, November 26th. Finally, Rosenblatt Securities restated a “buy” rating and set a $78.00 target price on shares of Zoom Video Communications in a report on Friday, November 22nd. Sixteen investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $89.48.

Insider Transactions at Zoom Video Communications

In related news, Director Jonathan Chadwick sold 25,000 shares of Zoom Video Communications stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $80.33, for a total value of $2,008,250.00. Following the completion of the sale, the director now owns 1,514 shares of the company’s stock, valued at $121,619.62. The trade was a 94.29 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Eric S. Yuan sold 83,332 shares of the company’s stock in a transaction dated Tuesday, February 4th. The shares were sold at an average price of $86.28, for a total transaction of $7,189,884.96. The disclosure for this sale can be found here. Over the last three months, insiders have sold 382,242 shares of company stock valued at $31,230,938. Insiders own 10.78% of the company’s stock.

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.