⬤ Loading…
Zoom Communications, Inc.
…
NASDAQ: ZM Technology IT 🔎 Screen
🏹 Trader: 🚀 Stage 2 + Near High 📈 Stage 2 🎯 Near 52W High | BRS 67 Forming View all →
📈 Stage 2 detected Find the fundamental catalyst → → run Growth Triggers in Ask AI
$29.7B
Market Cap
14.9
P/E
7.99
PEG
55.0%
ROCE
20.3%
ROE
0.01
D/E
23.5%
OPM
-12.0%
% from 52W High
75
α RS
🔍 ZM is showing a multi-screen setup because it matches 17 of 39 tracked screener presets, RS Rating is 75, and it's within 12% of its 52-week high. The main caution: the Large Cap Quality preset's Backtest win rate is only 49.8%. Net: Mixed signal stack, not a recommendation. ? Conviction RS Rating 52W High Backtest
Sources
Conviction 17/39 · RS Rating 75 · 12% from 52W high · Backtest win rate 49.8%
⚖️ Compare 🔒 Generate Report 🔒 Research Packet 📚 Guides
🌏 Global Investor Returns
Currency-adjusted total returns for ZM including FX impact
🌏
Click 🌏 Returns tab to load data
📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection 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, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
Loading…
⭐ Superinvestors Holding ZM
View All Superinvestors →
Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 2.46M $197.7M 0.31% Mar 2026
Steve Cohen Point72 Asset Management 607.0K $48.8M 0.06% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔒
Premium Feature
AI-generated 10-section company profile — business model, financials, strengths, risks & management quality
Upgrade to Premium
Already a member? Log in
📐
3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
Open Model →
🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q1 2027
Revenue
$1.239B
+5.5% YoY
Operating Income (Non-GAAP)
$508.7M
+9% YoY
Operating Margin (Non-GAAP)
41.1%
+130bps YoY
Net Income (Non-GAAP)
$465.0M
+3.7% YoY
What Went Right
  • AI Companion paid MAUs up 184% YoY; My Notes surpassed 1.5M users in four months.
  • Enterprise revenue grew 7.2% YoY; customers >$100k ARR up 8.2% to 4,534.
  • Non-current RPO up 19% YoY; high double-digit growth in Zoom Customer Experience.
  • Raised full-year revenue and profitability guidance; authorized $1B incremental buyback.
What to Watch
  • Online monthly churn ticked up to 3.0% from 2.8% YoY.
  • Q2 revenue guidance implies deceleration to ~4.1% YoY midpoint growth.
  • White label churn continues to impact enterprise growth by ~60bps.
  • FX headwinds, especially in EMEA, pressured constant currency growth.
Management Guidance
  • Q2 FY2027 revenue: $1.265B – $1.270B.
  • Q2 non-GAAP operating income: $508M – $513M; non-GAAP EPS: $1.45 – $1.47.
  • Full-year FY2027 revenue raised to $5.08B – $5.09B (4.4% YoY at midpoint).
  • Full-year non-GAAP operating income raised to $2.065B – $2.075B; EPS: $5.96 – $6.00.
  • Full-year free cash flow expected $1.70B – $1.74B.
Investor Lens
The thesis strengthens this quarter. AI monetization is gaining traction with AI Companion and Custom AI Companion driving enterprise expansion, and Zoom Customer Experience is accelerating at high double-digit growth. Strong profitability and cash flow, combined with a $1B share repurchase authorization, support shareholder returns. However, the slight uptick in online churn and the implied revenue deceleration in Q2 caution that durable growth still hinges on scaling new AI revenue streams.
From investor presentation · AI-generated analysis · Not investment advice
🔒
Premium Feature
Investor Presentation One-Pager — quarterly highlights, what went right/wrong & management guidance
Upgrade to Premium
Already a member? Log in
📈 STRONG Zoom delivers solid Q1 with 5.5% revenue growth, beats on top and bottom line.
Revenue
Total revenue of $1.239 billion grew 5.5% YoY (4.6% constant currency), $14 million above guidance high end. Enterprise revenue rose 7.2% to $755.7 million (61% of total), while online revenue increased 2.8% to $483.3 million.
Profitability
Non-GAAP net income was $465.0 million, up from $448.3 million YoY; diluted EPS of $1.55 beat guidance by $0.13. GAAP net income surged to $425.7 million from $254.6 million, driven by operating leverage and lower stock-based compensation.
Margins
Non-GAAP gross margin improved 70bps to 79.9%, aided by cost optimization. Non-GAAP operating margin expanded 130bps to 41.1%, benefiting from the accounting amortization change and gross margin gains, partly offset by the shift from SBC to cash bonus.
Balance Sheet
Ended quarter with $7.7 billion in cash and marketable securities. Operating cash flow grew 7% to $521.6 million, free cash flow rose 8% to $500.5 million (40.4% margin). RPO reached $4.3 billion, up 11% YoY, with non-current RPO up 19%.
Key Risks
Management flagged online churn increase to 3.0% from 2.8% YoY, though considered nominal. FX headwinds pressured constant currency revenue growth by ~90bps. White label customer churn continues to impact enterprise growth by roughly 60bps. Analysts pressed on competitive pressure from Salesforce in CX, but Zoom highlighted differentiated UC+CX integration.
Outlook
For Q2, Zoom guides revenue of $1.265B–$1.270B (4.1% YoY at midpoint) and non-GAAP EPS of $1.45–$1.47. Full-year revenue raised to $5.08B–$5.09B (4.4% YoY midpoint) with non-GAAP operating margin of 40.7% and EPS of $5.96–$6.00. Free cash flow expected $1.70B–$1.74B.
Generated by AI · Q1 2027 results · Not investment advice
🔒
Free Account Required

Create a free Finmagine account to access Finmagine™ Scorecard.

See how this company scores across 5 dimensions — Financial Health, Growth Prospects, Competitive Position, Management Quality, and Valuation — powered by 30+ computed ratios.

Create Free AccountLog In
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Ask AI.

Get 25 expert AI analysis templates — Business KPIs, Comprehensive, Forensic Governance, Peer Comparison, Risk-Reward, Full Research Report, IPO Decoder, Red Flag Detector, and more — ready to paste into ChatGPT, Claude, Gemini, or Perplexity.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Peer Comparison.

Compare this company side-by-side against its sector peers with financial metrics, ratio benchmarking, and relative performance across all key dimensions.

Upgrade to PremiumCreate Free Account
✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
🔍
🔎 See cross-company document search → ?
📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-05-21
Q1 FY 2027 delivered 5.5% revenue growth, strong enterprise momentum, and rapid AI adoption, with key wins driving platform expansion. Profitability and cash flow improved, guidance was raised for the year, and a new $1B share repurchase was authorized.
Q4 2026 Q4 2026 2026-02-25
Q4 and FY 2026 saw accelerating revenue growth, strong enterprise momentum, and expanding AI-driven product adoption. FY 2027 guidance projects continued growth, robust margins, and ongoing investment in AI and platform expansion.
Q3 2026 Q3 2026 2025-11-24
Q3 FY2026 saw 4.4% revenue growth, strong AI product adoption, and robust enterprise momentum. Profitability and cash flow improved, with raised FY2026 guidance and a new $1B share buyback. AI-driven innovation and platform expansion remain top priorities.
Q2 2026 Q2 2026 2025-08-21
Q2 FY26 revenue grew 4.7% year-over-year to $1.217B, led by enterprise and AI-driven solutions. Non-GAAP operating margin rose to 41.3%, and guidance for FY26 was raised across revenue, profitability, and free cash flow. AI adoption and contact center wins drove momentum.
Q1 2026 Q1 2026 2025-05-21
Q1 FY26 revenue grew 3% year over year to $1.175B, with strong enterprise and AI-driven product adoption. Guidance for FY26 was raised, reflecting continued innovation, prudent enterprise outlook, and robust cash flow, while channel and international expansion contributed to growth.
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Catalyst Timeline.

Every result, order win, insider trade, ECS update, earnings-call, and SEC announcement for this company — in one chronological lane.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Full Report.

Read the complete Finmagine™ investment research report — comprehensive fundamental analysis, business model assessment, competitive positioning, and investment recommendation.

Upgrade to PremiumCreate Free Account

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯
Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.
📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Not SEC-Registered:
Finmagine is not registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or any state securities authority. Nothing on this platform constitutes investment advice as defined under the Investment Advisers Act of 1940.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This analysis may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. Finmagine does not undertake any obligation to update such statements in the future.

Limitation of Liability:
The content is provided "as is" without any warranties, express or implied. Finmagine expressly disclaims any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.