Research Analysts Adjust Earnings Expectations for Zoom Video Communications

Zoom Video Communications, Inc. (NASDAQ:ZM - Free Report) has recently been in the spotlight as analysts at Wedbush updated their expectations for the company's upcoming Q2 2026 earnings. In a report released on November 26th, analyst D. Ives raised the earnings per share (EPS) forecast to $0.63, an increase from the previously estimated $0.61. This adjustment highlights an optimistic view of the company's financial performance.

Wedbush maintains an "Outperform" rating on Zoom's stock, setting a price target of $85.00. Currently, the consensus estimate for Zoom Video Communications' full-year earnings is $2.77 per share.

Market Perspectives and Analyst Ratings

Zoom has received varied opinions from other analysts as well. Evercore ISI has upgraded its rating on Zoom from "in-line" to "outperform" while raising its price target from $70.00 to $115.00. Meanwhile, JMP Securities has reiterated a "market perform" rating on the stock. Bank of America also increased its target price from $75.00 to $90.00, maintaining a "neutral" rating. Additionally, Sanford C. Bernstein adjusted their price target upward from $78.00 to $89.00, also assigning a "market perform" rating. The Goldman Sachs Group increased its target price for Zoom from $72.00 to $86.00, giving it a "neutral" rating. Currently, two analysts rate the stock as a sell, fifteen as hold, and seven as buy, resulting in a consensus rating of "Hold" with an average price target of $85.19, according to MarketBeat.com.

Stock Performance Overview

As of Thursday, NASDAQ ZM opened at $85.36. The company's market capitalization stands at approximately $26.27 billion, with a price-to-earnings (P/E) ratio of 28.45. Its price/earnings to growth (P/E/G) ratio is 7.12, and the stock has a beta of -0.05. The 50-day moving average price for Zoom is $74.55, while its 200-day moving average price is $66.03. Over the past year, the stock has ranged from a low of $55.06 to a high of $92.80.

Institutional Investment Trends

Institutional investments in Zoom Video Communications have seen significant activity. Various hedge funds have adjusted their holdings, with Jacobs Levy Equity Management Inc. taking a new stake in the first quarter worth approximately $260,000. California State Teachers Retirement System increased its position by 1.7%, owning 396,209 shares valued at $25.9 million after acquiring an additional 6,630 shares. Tidal Investments LLC greatly increased its holdings by 89.7%, now owning 34,352 shares valued at $2.25 million after buying 16,248 shares. Comerica Bank also grew its stake by 15.6%, now holding 4,966 shares valued at $325,000 after adding 670 shares. Furthermore, iA Global Asset Management Inc. increased its holdings by 27.3%, owning 4,060 shares valued at $265,000. The data indicates that hedge funds and other institutional investors currently hold 66.54% of Zoom's stock.

Insider Trading Activities

Recent insider activities also caught attention. CEO Eric S. Yuan sold 178,571 shares on November 5th, with the stock sold at an average price of $76.91, totaling about $13.73 million. This transaction was filed with the SEC. Additionally, CAO Shane Crehan sold 1,550 shares on September 10th at an average price of $66.87, realizing $103,648.50 from the sale. Following this transaction, Crehan holds 1,463 shares valued at around $97,831, reflecting a 51.44% decrease in their position. Over the last three months, insiders have sold a total of 367,108 shares worth approximately $26.80 million, with insiders owning about 10.78% of the company's stock.

About Zoom Video Communications

Zoom Video Communications, Inc. provides a platform for unified communications across various regions, including the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings for HD video, voice, chat, and content sharing capabilities across multiple devices, including mobile phones, desktops, laptops, and conference room systems. Additionally, Zoom Phone serves as an enterprise cloud phone system, while Zoom Chat facilitates sharing of messages, images, audio files, and content on various devices.

Zoom, Earnings, Analysts