ZM
Zoom Communications, Inc.
ZM's fundamentals are strong and it looks cheap: trading at 9.1x earnings, about a third of its usual 32x. Analysts expect earnings growth.
ZM Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Strong | |
| Strong |
ZM's profitability, cash flow and balance sheet are currently strong, and its revenue is stable.
ZM PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 9.1x | $97.70 | — |
| Forward | 16x | $97.70 | — |
| Cheap | 21x | $230 | +135% |
| Fair | 31x | $334 | +242% |
| Expensive | 538x | $5,801 | +5838% |
Historical ranges are pointers, not guarantees.
ZM's PE is in its cheap range at 9.1x. On analysts' estimates for next year's earnings, today's price would be 16x.
ZM Forward outlook
| Metric | Outlook |
|---|---|
| Strongly deteriorating | |
| Growth | |
| Stable | |
| Stable | |
| Limited | |
| High |
Analysts expect ZM's earnings to grow, with its revenue and profitability holding steady.
ZM Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $6.22 | -42% |
| Q3 2026 | $10.78 | +184% |
| Q2 2026 | $6.79 | +104% |
| Q1 2026 | $6.18 | +93% |
| Q4 2025 | $5.14 | +70% |
| Q3 2025 | $3.79 | +34% |
| Q2 2025 | $3.33 | +23% |
| Q1 2025 | $3.21 | +55% |
| Q4 2024 | $3.03 | +304% |
ZM's earnings per share have climbed steadily: $10.78 over the past year, up 184% from the year before, and higher year over year for 11 quarters in a row.
ZM Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $1.3B | +4.9% |
| Q2 2026 | $1.2B | +5.5% |
| Q1 2026 | $1.2B | +5.3% |
| Q4 2025 | $1.2B | +4.4% |
| Q3 2025 | $1.2B | +4.7% |
| Q2 2025 | $1.2B | +2.9% |
| Q1 2025 | $1.2B | +3.3% |
| Q4 2024 | $1.2B | +3.6% |
ZM's revenue has grown year over year every quarter since late 2020: $1.3B last quarter, up 4.9% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 25% | -1.8 points |
| Q2 2026 | 25% | +4.5 points |
| Q1 2026 | 20% | +1 points |
| Q4 2025 | 25% | +9.7 points |
| Q3 2025 | 26% | +9 points |
| Q2 2025 | 21% | +2.8 points |
| Q1 2025 | 19% | +4.3 points |
| Q4 2024 | 16% | +0.6 points |
ZM's operating margin was 25% last quarter, down 1.8 points from the same quarter a year ago.
ZM Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $472.4M | -7% |
| Q2 2026 | $500.5M | +8% |
| Q1 2026 | $338.4M | -19% |
| Q4 2025 | $614.3M | +34% |
| Q3 2025 | $508M | +39% |
| Q2 2025 | $463.4M | -19% |
| Q1 2025 | $416.2M | +25% |
| Q4 2024 | $457.7M | +1% |
ZM's free cash flow has been positive every quarter for seven years: $1.9B over the past year, up 4.4% from the year before.
ZM Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.2% | -487K shares |
| 1 year | -2.8% | -8.5M shares |
| 3 years | -2% | -6.2M shares |
| 5 years | -2% | -6.1M shares |
| Available history | +2.4% | +7M shares |
ZM has 300M diluted shares, down 2.8% from a year ago, with $1.5B in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $360.5M |
| Q2 2026 | $361.7M |
| Q1 2026 | $323.7M |
| Q4 2025 | $413.7M |
| Q3 2025 | $465.3M |
| Q2 2025 | $418M |
| Q1 2025 | $354.6M |
| Q4 2024 | $301.6M |
ZM spent $1.5B buying back its own shares over the past year, down 5.2% from the year before.
ZM Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.7x | Net Cash |
| Q2 2026 | -0.7x | Net Cash |
| Q1 2026 | -1.0x | Net Cash |
| Q4 2025 | -1.0x | Net Cash |
| Q3 2025 | -1.1x | Net Cash |
| Q2 2025 | -1.3x | Net Cash |
| Q1 2025 | -1.4x | Net Cash |
| Q4 2024 | -1.5x | Net Cash |
ZM has more cash than debt.
ZM Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 53.3 | Neutral |
| Stochastic | 35.2 | Neutral |
ZM's weekly RSI is 53 (neutral) and its Stochastic is 35 (neutral).
ZM PE vs Technology Sector
| Metric | ZM | Sector median | Relative |
|---|---|---|---|
| PE | 9.1x | 28x | 67% below |
| PE % | 2 | 35 | 33 pts below |
ZM is trading at 9.1x earnings, a 67% discount to the Technology sector's median of 28x.
ZM Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $94.2 | 3.7% above |
| 20 week MA | $95.4 | 2.4% above |
| 50 week MA | $91.5 | 6.8% above |
| 100 week MA | $85.4 | 14% above |
| 200 week MA | $76.6 | 28% above |
ZM is in an uptrend: it's above all five of its weekly moving averages, and 28% above its 200-week average.
ZM Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $66.6 | $375.2 | +463% |
| 2021 | $375.2 | $191.7 | -49% |
| 2022 | $191.7 | $65.9 | -66% |
| 2023 | $65.9 | $71.9 | +9.1% |
| 2024 | $71.9 | $83.8 | +17% |
| 2025 | $83.8 | $88.0 | +5% |
| 2026 YTD | $88.0 | $97.7 | +11% |
ZM's yearly returns have swung widely, from +463% in 2020 to −66% in 2022. It's up 11% so far in 2026.