ZM Stock Analysis: Zoom Video Communications | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 27.101m USD | 12M Return: 18.2% | US98980L1017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 258M
EPS Trend: 79.1%
Qual. Beats: -1
Rev. Trend: 99.1%
Qual. Beats: 6
Warnings
Tailwinds
No distinct edge detected
Seasonality 7.4 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Zoom Communications, Inc. is a San Jose-based software company that provides an AI-first open work platform for human connection, operating across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its core offerings include Zoom Meetings (HD video, voice, chat, and content sharing), Zoom Phone (cloud phone system), and Zoom Team Chat, supported by a broader suite of collaboration and communication tools such as Zoom Docs, Whiteboard, Clips, Rooms, Contact Center, Revenue Accelerator, Events, and Webinars. The company also sells Workvivo, an employee experience platform, alongside a Developer Platform and App Marketplace for third-party integrations. Zoom serves individual users and organizations across a wide range of industries, including education, finance, government, healthcare, manufacturing, retail, and software/Internet. The company was incorporated in 2011, IPOd in 2019, and rebranded from Zoom Video Communications, Inc. to Zoom Communications, Inc. in November 2024 to reflect its expansion beyond video into a broader AI-enabled work platform.
Zoom operates in the Application Software sub-industry within the Information Technology sector, distributing its products primarily through a software-as-a-service (SaaS) subscription model that allows customers to scale seats and features on demand. Its pivot toward an AI-first positioning reflects a broader industry trend in which collaboration vendors are embedding generative and conversational AI features (such as meeting summaries, smart compose, and workflow automation) directly into their core platforms to drive differentiation and recurring revenue.
- AI-first platform pivot expands enterprise customer base
- Microsoft Teams competition pressures core meetings revenue
- Zoom Phone and Contact Center lift average revenue per user
| Net Income: 3.26b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -2.53 > 1.0 |
| NWC/Revenue: 120.0% < 20% (prev 141.3%; Δ -21.22% < -1%) |
| CFO/TA 0.15 > 3% & CFO 2.00b > Net Income 3.26b |
| Net Debt (-7.19b) to EBITDA (4.39b): -1.64 < 3 |
| Current Ratio: 3.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (300.0m) vs 12m ago -2.66% < -2% |
| Gross Margin: 77.30% > 18% (prev 76.38%; Δ 0.92% > 0.5%) |
| Asset Turnover: 40.55% > 50% (prev 43.04%; Δ -2.50% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.44 (Total Current Assets 8.12b - Total Current Liabilities 2.12b) / Total Assets 13.6b |
| B: 0.56 (Retained Earnings 7.67b / Total Assets 13.6b) |
| C: 0.34 (EBIT TTM 4.18b / Avg Total Assets 12.3b) |
| D: 4.95 (Book Value of Equity 11.3b / Total Liabilities 2.28b) |
| Altman-Z'' = 12.22 = AAA |
| DSRI: 0.98 (Receivables 533.0m/516.8m, Revenue 4.99b/4.75b) |
| GMI: 0.99 (GM 76.38% / 77.30%) |
| AQI: 2.06 (AQ_t 0.38 / AQ_t-1 0.18) |
| SGI: 1.05 (Revenue 4.99b / 4.75b) |
| TATA: 0.09 (NI 3.26b - CFO 2.00b) / TA 13.6b) |
| Beneish M = -2.38 (Cap -4..+1) = BBB |
As of October 11, 2026, the stock is trading at USD 97.74 with a total of 2,363,735 shares traded. Over the past week, the price has changed by +5.23%, over one month by +1.62%, over three months by +8.74% and over the past year by +18.19%.
Current recommended Stop Loss: 92.30 (which is 5.6% or 1.9 ATR below the current price).
Zoom Video Communications has received a consensus analysts rating of 4.10. Therefore, it is recommended to buy ZM.
- StrongBuy: 16
- Buy: 2
- Hold: 11
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 118.2 | 21% |
P/E Trailing = 8.624
P/E Forward = 15.1057
P/S = 5.4277
P/B = 2.3722
P/EG = 2.5192
Revenue TTM = 4.99b USD
EBIT TTM = 4.18b USD
EBITDA TTM = 4.39b USD
Long Term Debt = 33.3m USD (estimated: total debt 60.3m - short term 26.9m)
Short Term Debt = 26.9m USD (from shortTermDebt, last quarter)
Debt = 60.3m USD (from shortLongTermDebtTotal, last quarter) (leases 60.3m already included)
Net Debt = -7.19b USD (calculated: Debt 60.3m - CCE 7.25b)
Enterprise Value = 19.9b USD (27.1b + Debt 60.3m - CCE 7.25b)
Interest Coverage Ratio = unknown (Ebit TTM 4.18b / Interest Expense TTM 0.0)
EV/FCF = 10.34x (Enterprise Value 19.9b / FCF TTM 1.93b)
FCF Yield = 9.67% (FCF TTM 1.93b / Enterprise Value 19.9b)
FCF Margin = 38.57% (FCF TTM 1.93b / Revenue TTM 4.99b)
Net Margin = 65.19% (Net Income TTM 3.26b / Revenue TTM 4.99b)
Gross Margin = 77.30% ((Revenue TTM 4.99b - Cost of Revenue TTM 1.13b) / Revenue TTM)
Gross Margin QoQ = 77.16% (prev 77.86%)
Tobins Q-Ratio = 1.47 (Enterprise Value 19.9b / Total Assets 13.6b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 60.3m)
Taxrate = 22.22% (929.9m / 4.18b)
NOPAT = 3.26b (EBIT 4.18b * (1 - 22.22%))
Current Ratio = 3.83 (Total Current Assets 8.12b / Total Current Liabilities 2.12b)
Debt / Equity = 0.01 (Debt 60.3m / totalStockholderEquity, last quarter 11.3b)
Debt / EBITDA = -1.64 (Net Debt -7.19b / EBITDA 4.39b)
Debt / FCF = -3.73 (Net Debt -7.19b / FCF TTM 1.93b)
Total Stockholder Equity = 10.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 26.43% (Net Income 3.26b / Total Assets 13.6b)
RoE = 32.25% (Net Income TTM 3.26b / Total Stockholder Equity 10.1b)
RoCE = 41.33% (EBIT 4.18b / Capital Employed (Equity 10.1b + L.T.Debt 33.3m))
RoIC = 28.96% (NOPAT 3.26b / Invested Capital 11.2b)
WACC = 10.63% (E(27.1b)/V(27.2b) * Re(10.65%) + D(60.3m)/V(27.2b) * Rd(0.0%) * (1-Tc(0.22)))
Discount Rate = 10.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.69 | Cagr: -2.19%
[DCF] Terminal Value 68.57% ; FCFF base≈1.89b ; Y1≈1.97b ; Y5≈2.24b
[DCF] Fair Price = 121.9 (EV 24.9b - Net Debt -7.19b = Equity 32.1b / Shares 263.2m; r=10.63% [WACC]; 5y FCF grow 4.38% → 2.50% )
EPS Correlation: 79.12 | EPS CAGR: 4.86% | SUE: -1.18 | # QB: -1
Revenue Correlation: 99.11 | Revenue CAGR: 3.84% | SUE: 1.08 | # QB: 6
EPS current Quarter (2026-10-31): EPS=1.49 | Chg30d=-1.01% | Revisions=-67% | Analysts=25
EPS current Year (2027-01-31): EPS=6.14 | Chg30d=+0.93% | Revisions=+64% | GrowthEPS=+3.7% | GrowthRev=+4.6%
EPS next Year (2028-01-31): EPS=6.34 | Chg30d=+0.56% | Revisions=+32% | GrowthEPS=+3.3% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +15% (up=36, down=26)