Zoom Q4 Earnings Beat Expectations, Cautious Outlook Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy ZM?
Source: seekingalpha
- Earnings Performance: Zoom reported a Q4 non-GAAP EPS of $1.44, missing expectations by $0.05, while revenue reached $1.25 billion, a 5.9% year-over-year increase, beating estimates by $20 million, indicating resilience in revenue growth.
- Future Outlook: For Q1 FY 2027, Zoom expects total revenue between $1.220 billion and $1.225 billion, slightly above the consensus of $1.22 billion, reflecting the company's efforts to stabilize revenue streams.
- Operating Income Forecast: The expected non-GAAP operating income for Q1 is between $487 million and $492 million, showcasing ongoing efforts in cost control and efficiency improvements, although EPS guidance falls short of market expectations.
- Annual Financial Projections: For FY 2027, total revenue is projected between $5.065 billion and $5.075 billion, exceeding the consensus of $5.03 billion, demonstrating confidence in future growth, despite cautious expectations for free cash flow.
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Analyst Views on ZM
Wall Street analysts forecast ZM stock price to rise
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 73.500
Low
85.00
Averages
99.33
High
115.00
Current: 73.500
Low
85.00
Averages
99.33
High
115.00
About ZM
Zoom Communications, Inc. provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Company’s AI-powered, open collaboration platform built for modern work, enables us to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion, includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom Docs, Zoom Whiteboard, Zoom Clips, and Zoom Tasks. Its space products include Zoom Rooms, Zoom Workspace Reservation, and Zoom Visitor Management. It serves various industries, including education, financial services, government, retail, manufacturing and healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
