Zoom Video Communications, Inc. (ZM) AI Stock Analysis

Zoom Video Communications, Inc. operates as a provider of unified communications platforms across multiple sectors, including education, finance, healthcare, and government. Established in 2011 and based in San Jose, California, the company offers a suite of communication tools for video conferencing, voice calls, chat, and content sharing. Its core products include Zoom Meetings, Zoom Phone, Zoom Chat, and software-based conference room systems via Zoom Rooms. Zoom also provides Zoom Hardware-as-a-Service, virtual event management tools through Zoom Events and OnZoom, and large-audience presentations via Zoom Webinars.

Annual revenue expanded from $4.10B in FY2022 to $4.39B in FY2023, $4.53B in FY2024, $4.67B in FY2025, and reached $4.87B in FY2026, representing a 5-year revenue CAGR of 12.9%. Revenue growth was 4.4% in FY2026, up from 3.1% in FY2025. Gross margin expanded to 77.0% in FY2026 from 74.3% in FY2022, while operating margin rose to 23.1%. Net income increased to $1.90B in FY2026, compared to $103.7M in FY2023. For the latest quarter ended July 31, 2026, quarterly revenue growth was 4.9% year-over-year, and quarterly earnings grew 342.3% year-over-year, bringing trailing twelve months revenue to $4.99B and EPS to $10.78.

As of July 31, 2026, Zoom held $7.25B in cash and short-term investments against total debt of $60.3M, yielding a net cash position of $7.19B. Liquidity remains supported by a current ratio of 3.83 and a debt-to-equity ratio of 0.01 on $11.30B in shareholders' equity. In FY2026, the company generated $1.99B in operating cash flow and $1.92B in free cash flow. Capital expenditures were $65.0M, while share buybacks totaled $1.62B, contributing to a 5-year share count change of -1.9%.

At a last close of $94.19, Zoom trades at a trailing P/E of 8.7x and a forward P/E of 15.1x, below the US-listed Technology median of 28.1x and 18.8x, respectively. Its enterprise value stands at $19.63B with an EV to EBITDA multiple of 14.9x, compared to the peer median of 16.6x. The stock trades at a price-to-sales ratio of 5.5x versus the peer median of 2.8x. Over the past year, Zoom posted a return of 18.0%, outpacing the SPY return of 16.8%, but its 5-year return of -64.6% lagged the SPY return of 83.0%.

Wall Street coverage includes 16 Strong Buy, 2 Buy, 11 Hold, and 1 Sell ratings, with 0 Strong Sell ratings. The mean price target of $118.24 implies an upside of 25.5% over the last close of $94.19. For the current fiscal year ending January 31, 2027, analysts project revenue of $5.09B and EPS of $6.14. Across the last 4 quarters, the company delivered 2 EPS beats. The next earnings date is November 23, 2026.

This page is an AI-written research summary of Zoom Video Communications, Inc. (ZM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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