Zoom Video Communications Inc - Ordinary Shares - Class A

Zoom Video Communications Inc - Ordinary Shares - Class A

ZM

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Market Cap$29.79B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Zoom Video Communications Inc - Ordinary Shares - Class AZoom Video Communications Inc - Ordinary Shares - Class A14.4-21%6.60.2

Earnings Call Q1 2027

May 21, 2026 - AI Summary

Strong Q1 beat + upgraded full-year guidance (good surprise) - Revenue +5.5% YoY to $1.24B (or +4.6% constant currency), $14M above the high end of guidance. - Enterprise revenue +7.2% YoY; 61% of total revenue (up 1 point YoY). - Non-GAAP gross margin 79.9% (+70 bps YoY) on cost optimization toward a long-term 80% target. - Non-GAAP operating income $509M (+9% YoY), above high end by $17M; non-GAAP op margin 41.1%. - Outlook upgrade (FY27): raises revenue to $5.08B–$5.09B (midpoint +4.4% YoY) and non-GAAP op income to $2.065B–$2.075B (midpoint ~40.7% op margin). - EPS (non-GAAP) FY27 now $5.96–$6.00 (midpoint increase), with free cash flow expected $1.7B–$1.74B.
AI-driven monetization is being treated as a core growth engine (opportunity) - AI Companion usage scaling: paid MAUs +184% YoY, driven by early adoption of AI Companion 3.0. - My Notes breakout: >1.5M monthly active users (excluding trials) just 4 months after launch. - Management claims AI is not just “summaries” but moving toward agentic workflows and a workflow layer (system of action) that supports monetization. - ZCX acceleration: AI is cited as a contributor—e.g., “paid AI” involved in most top ZCX deals (per Q&A), suggesting AI features may be reducing friction for adoption/pricing.
Customer expansion + durable enterprise signals (good) - Enterprise customer count growing: +8% YoY for customers contributing >$100k TTM, now 33% of total revenue. - Net dollar expansion (TTM) improved to 99% (modest but positive inflection). - RPO growth: +11% YoY to ~$4.3B, with noncurrent RPO +19% YoY, reflecting longer-duration multiproduct platform deals. - Enterprise wins show “platform displacement” narrative: top wins often include Zoom Workplace / Phone and increasingly AI-first communications.

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$115.08

Target Price by Analysts

8.4% upsideZoom Video Communications Target Price DetailsTarget Price
$232.17

Current Fair Value

118.6% upside

Undervalued by 118.6% based on the discounted cash flow analysis.

Share Statistics

Market cap$29.79 Billion
Enterprise Value$30.44 Billion
Dividend Yield$- (-)
Earnings per Share$6.32
Beta1
Outstanding Shares294,434,952

Return

Return on Equity20.77%ROE
Return on Assets17.03%
Return on Invested Capital17.83%

Valuation & Multiples

P/E Ratio14.44P/E Ratio
PEG21.49PEG
Price to Sales6.64Price to Sales
Price to Book Ratio3.22Price to Book Ratio
Enterprise Value to Revenue6.17
Enterprise Value to EBIT16.85
Enterprise Value to Net Income14
Total Debt to Enterprise0.05
Debt to Equity0.15Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 25, 2026
EPS Estimate
$1.42
Average shareholder expectation
Revenue Estimate
$1.22 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 20, 2026
EPS Estimate
$1.47
Average shareholder expectation
Revenue Estimate
$1.27 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.5683▼ 38.78%
Total Calls9,906,898▲ 19.21%
Total Puts5,630,082▼ 29.14%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %65.15%▼ 2.14%
Total Invested$15.71B▼ 10.29%
Investors Holding871▼ 21.00%

ESG Score

No data

About Zoom Video Communications Inc

CEO: Eric Yuan

Relevant Senate Committees

Joint Committee on Taxation

This committee provides crucial analysis and 'scoring' for all tax legislation, directly influencing corporate tax structures, capital investment credits, and the overall tax burden on companies like Zoom, significantly impacting their financials.

Finance

This powerful committee controls taxation and trade policy, which directly impacts Zoom's corporate valuations, profitability, and global operational strategies through changes in tax rates, incentives, and international trade agreements.

Judiciary

This committee's oversight of antitrust laws and intellectual property directly affects Zoom as a significant tech company. It influences potential M&A activities and the competitive landscape of the software industry.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, the FCC, and FTC, directly impacting 'Big Tech' through regulations on privacy, net neutrality, and telecommunications, which are core to Zoom's business model.