Zoom Communications (ZM)
Market Price (9/6/2026): $100.91 | Market Cap: $29.6 BilSector: Information Technology | Industry: Application Software
Zoom Communications (ZM)
Market Price (9/6/2026): $100.91Market Cap: $29.6 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 6.6%, FCF Yield is 6.5% Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -24% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 40%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 39%, CFO LTM is 2.0 Bil Stock buyback supportStock Buyback 3Y Total is 3.4 Bil Low stock price volatilityVol 12M is 43% Megatrend and thematic driversMegatrends include Cloud Computing, Digital Health & Telemedicine, and Future of Work. Themes include Software as a Service (SaaS), Show more. | Weak multi-year price returns3Y Excs Rtn is -23% | Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 15% Key risksZM key risks include [1] eroding customer retention due to intense competition from bundled tech giants, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 6.6%, FCF Yield is 6.5% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -24% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 40%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 39%, CFO LTM is 2.0 Bil |
| Stock buyback supportStock Buyback 3Y Total is 3.4 Bil |
| Low stock price volatilityVol 12M is 43% |
| Megatrend and thematic driversMegatrends include Cloud Computing, Digital Health & Telemedicine, and Future of Work. Themes include Software as a Service (SaaS), Show more. |
| Weak multi-year price returns3Y Excs Rtn is -23% |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 15% |
| Key risksZM key risks include [1] eroding customer retention due to intense competition from bundled tech giants, Show more. |
Qualitative Assessment
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Zoom Communications (ZM) stock has remained largely at the same level since 5/31/2026 because of the following key factors:
1. Mixed Q2 Fiscal Year 2027 Results and Cautious Q3 Guidance: While Zoom's fiscal Q2 2027 (ended July 31, 2026) revenue of $1.28 billion and non-GAAP diluted EPS of $1.55 both surpassed analyst expectations of $1.27 billion and $1.48, respectively, the company's Q3 fiscal year 2027 guidance proved to be a tempering factor. The projected Q3 EPS of $1.46-$1.48 missed the Street consensus of approximately $1.50, leading to a significant stock decline of 7.03% on August 26, 2026, the day after the earnings report. This immediate negative market reaction to forward-looking guidance, despite a solid quarter, indicated investor concern about the pace of future growth, thus limiting overall stock appreciation.
2. Robust Enterprise Segment Growth Driven by AI and Product Diversification: Zoom demonstrated strong performance in its Enterprise segment, with revenue growing 7.8% year-over-year in fiscal Q2 2027, marking its strongest growth rate in three years. This growth was attributed to the company's "AI-first system of action" strategy, emphasizing offerings like Zoom Workplace with AI, Zoom Phone, and Contact Center solutions. The success of new AI-powered products and diversified solutions within the enterprise sector provided a foundational support for the stock, offsetting some of the broader market and online segment concerns.
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Zoom Communications (ZM) stock has remained largely at the same level since 5/31/2026 because of the following key factors:
1. Mixed Q2 Fiscal Year 2027 Results and Cautious Q3 Guidance: While Zoom's fiscal Q2 2027 (ended July 31, 2026) revenue of $1.28 billion and non-GAAP diluted EPS of $1.55 both surpassed analyst expectations of $1.27 billion and $1.48, respectively, the company's Q3 fiscal year 2027 guidance proved to be a tempering factor. The projected Q3 EPS of $1.46-$1.48 missed the Street consensus of approximately $1.50, leading to a significant stock decline of 7.03% on August 26, 2026, the day after the earnings report. This immediate negative market reaction to forward-looking guidance, despite a solid quarter, indicated investor concern about the pace of future growth, thus limiting overall stock appreciation.
2. Robust Enterprise Segment Growth Driven by AI and Product Diversification: Zoom demonstrated strong performance in its Enterprise segment, with revenue growing 7.8% year-over-year in fiscal Q2 2027, marking its strongest growth rate in three years. This growth was attributed to the company's "AI-first system of action" strategy, emphasizing offerings like Zoom Workplace with AI, Zoom Phone, and Contact Center solutions. The success of new AI-powered products and diversified solutions within the enterprise sector provided a foundational support for the stock, offsetting some of the broader market and online segment concerns.
3. Continued Share Repurchase Program Activity: Zoom actively engaged in its authorized share repurchase program during the period, returning capital to shareholders. In fiscal Q1 2027 (ended April 30, 2026), the company repurchased 4.2 million shares for $362 million. This was followed by the repurchase of approximately 3.7 million shares for $352 million in fiscal Q2 2027. These substantial buybacks, totaling over $700 million across two quarters, likely helped to cushion the stock price from more significant declines and signaled management's confidence in the company's valuation.
4. Modest Online Segment Performance and Macroeconomic Headwinds: The online business segment experienced slower growth, with Q2 fiscal year 2027 revenue increasing only 0.6% year-over-year, and average monthly churn remaining stable at 2.9%. Concurrently, broader macroeconomic factors, including elevated long-term interest rates, persistent inflation, and geopolitical tensions, continued to weigh on overall market sentiment. While AI investment remained strong in the tech sector, these combined pressures on Zoom's online revenue alongside a cautious economic outlook contributed to a generally constrained valuation, preventing a sustained upward movement in the stock.
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Stock Movement Drivers
Fundamental Drivers
The -0.3% change in ZM stock from 5/31/2026 to 9/5/2026 was primarily driven by a -36.9% change in the company's P/E Multiple.| (LTM values as of) | 5312026 | 9052026 | Change |
|---|---|---|---|
| Stock Price ($) | 101.59 | 101.33 | -0.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,933 | 4,993 | 1.2% |
| Net Income Margin (%) | 42.0% | 65.2% | 55.3% |
| P/E Multiple | 14.4 | 9.1 | -36.9% |
| Shares Outstanding (Mil) | 294 | 293 | 0.5% |
| Cumulative Contribution | -0.3% |
Market Drivers
5/31/2026 to 9/5/2026| Return | Correlation | |
|---|---|---|
| ZM | -0.3% | |
| Market (SPY) | 1.8% | 29.8% |
| Sector (XLK) | -2.0% | 15.1% |
Fundamental Drivers
The 37.0% change in ZM stock from 2/28/2026 to 9/5/2026 was primarily driven by a 67.0% change in the company's Net Income Margin (%).| (LTM values as of) | 2282026 | 9052026 | Change |
|---|---|---|---|
| Stock Price ($) | 73.94 | 101.33 | 37.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,869 | 4,993 | 2.6% |
| Net Income Margin (%) | 39.0% | 65.2% | 67.0% |
| P/E Multiple | 11.5 | 9.1 | -21.0% |
| Shares Outstanding (Mil) | 297 | 293 | 1.3% |
| Cumulative Contribution | 37.0% |
Market Drivers
2/28/2026 to 9/5/2026| Return | Correlation | |
|---|---|---|
| ZM | 37.0% | |
| Market (SPY) | 12.6% | 21.9% |
| Sector (XLK) | 35.1% | 19.1% |
Fundamental Drivers
The 24.5% change in ZM stock from 8/31/2025 to 9/5/2026 was primarily driven by a 160.8% change in the company's Net Income Margin (%).| (LTM values as of) | 8312025 | 9052026 | Change |
|---|---|---|---|
| Stock Price ($) | 81.42 | 101.33 | 24.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,754 | 4,993 | 5.0% |
| Net Income Margin (%) | 25.0% | 65.2% | 160.8% |
| P/E Multiple | 20.7 | 9.1 | -55.9% |
| Shares Outstanding (Mil) | 302 | 293 | 3.0% |
| Cumulative Contribution | 24.5% |
Market Drivers
8/31/2025 to 9/5/2026| Return | Correlation | |
|---|---|---|
| ZM | 24.5% | |
| Market (SPY) | 20.4% | 26.2% |
| Sector (XLK) | 43.3% | 23.1% |
Fundamental Drivers
The 42.7% change in ZM stock from 8/31/2023 to 9/5/2026 was primarily driven by a 1953.3% change in the company's Net Income Margin (%).| (LTM values as of) | 8312023 | 9052026 | Change |
|---|---|---|---|
| Stock Price ($) | 71.03 | 101.33 | 42.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,464 | 4,993 | 11.9% |
| Net Income Margin (%) | 3.2% | 65.2% | 1953.3% |
| P/E Multiple | 149.9 | 9.1 | -93.9% |
| Shares Outstanding (Mil) | 299 | 293 | 2.1% |
| Cumulative Contribution | 42.7% |
Market Drivers
8/31/2023 to 9/5/2026| Return | Correlation | |
|---|---|---|
| ZM | 42.7% | |
| Market (SPY) | 77.1% | 37.1% |
| Sector (XLK) | 117.2% | 32.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ZM Return | -45% | -63% | 6% | 13% | 6% | 14% | -71% |
| Peers Return | 25% | -44% | 44% | 20% | 15% | 45% | 105% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| ZM Win Rate | 42% | 25% | 50% | 58% | 67% | 78% | |
| Peers Win Rate | 65% | 25% | 57% | 60% | 55% | 51% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 56% | |
Max Drawdowns [4] | |||||||
| ZM Max Drawdown | -59% | -65% | -30% | -23% | -25% | -26% | |
| Peers Max Drawdown | -21% | -50% | -22% | -22% | -29% | -27% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MSFT, CSCO, GOOGL, RNG, CRM. See ZM Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/4/2026 (YTD)
How Low Can It Go
| Event | ZM | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -21.7% | -18.8% |
| % Gain to Breakeven | 27.7% | 23.1% |
| Time to Breakeven | 154 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -14.5% | -9.5% |
| % Gain to Breakeven | 16.9% | 10.5% |
| Time to Breakeven | 35 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -20.5% | -6.7% |
| % Gain to Breakeven | 25.7% | 7.1% |
| Time to Breakeven | 552 days | 31 days |
In The Past
Zoom Communications's stock fell -21.7% during the 2025 US Tariff Shock. Such a loss loss requires a 27.7% gain to breakeven.
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Asset Allocation
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| Event | ZM | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -21.7% | -18.8% |
| % Gain to Breakeven | 27.7% | 23.1% |
| Time to Breakeven | 154 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -20.5% | -6.7% |
| % Gain to Breakeven | 25.7% | 7.1% |
| Time to Breakeven | 552 days | 31 days |
In The Past
Zoom Communications's stock fell -21.7% during the 2025 US Tariff Shock. Such a loss loss requires a 27.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Zoom Communications (ZM)
Zoom Video Communications, Inc. (ZM) is a leading provider of a unified communications platform, primarily known for its high-definition video conferencing solutions. The company enables seamless communication and collaboration across various devices, including mobile, desktop, and conference room systems, integrating video, voice, chat, and content sharing functionalities into a single platform.
Beyond its widely recognized Zoom Meetings, the company offers a comprehensive suite of products and services. These include Zoom Phone, an enterprise cloud phone system; Zoom Chat for instant messaging; Zoom Rooms for software-based conference room systems; and Zoom Events and Webinars for hosting virtual events and presentations. Zoom also provides a Developer Platform for integrations, a hardware-as-a-service offering, and an omnichannel Zoom Contact Center solution, expanding its reach into business communication infrastructure.
Zoom serves a broad and diverse customer base globally, catering to individuals, small businesses, and large enterprises across numerous sectors. Its primary markets include education, entertainment/media, finance, government, healthcare, manufacturing, retail/consumer products, and various other industries, demonstrating its platform's versatility and widespread adoption for both internal and external communication needs.
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Here are 1-3 brief analogies to describe Zoom Communications (ZM):
- The Netflix for virtual meetings.
- Like Microsoft Teams or Google Meet, but built around a world-class video conferencing experience.
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- Zoom Meetings: A platform offering HD video, voice, chat, and content sharing across various devices.
- Zoom Phone: An enterprise-grade cloud-based phone system.
- Zoom Chat: A messaging service enabling users to share messages, images, and content across devices.
- Zoom Rooms: A software-based conference room system for video collaboration.
- Zoom Hardware-as-a-Service: A service providing access to video communication technology using third-party equipment.
- Zoom Conference Room Connector: A gateway enabling SIP/H.323 endpoints to join Zoom meetings.
- Zoom Events: A platform for managing and hosting both internal and external virtual events.
- OnZoom: A prosumer-focused virtual event platform and marketplace for creating, hosting, and monetizing online events.
- Zoom Webinars: A service for delivering video presentations to large audiences from various devices.
- Zoom Developer Platform: A platform that enables developers to build apps and integrate Zoom's video-based communication solutions.
- Zoom App Marketplace: A marketplace for developers to publish their apps and third-party integrations for Zoom.
- Zoom Contact Center: An omnichannel contact center solution for customer service.
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Zoom Communications (symbol: ZM) primarily sells its unified communications platform and related services to other companies and organizations.
The provided background information does not list the names of specific major customer companies. However, it identifies the following categories of industries that Zoom serves, which represent its major customer segments:
- Education
- Entertainment/Media
- Enterprise Infrastructure
- Finance
- Government
- Healthcare
- Manufacturing
- Non-profit/Not-for-profit and Social Impact
- Retail/Consumer Products
- Software/Internet Industries
While Zoom also serves individuals and prosumers, its primary customer base for its broader suite of offerings, including Zoom Phone, Zoom Rooms, and Zoom Contact Center, is found within these diverse organizational categories.
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- Oracle (ORCL)
- Amazon.com (AMZN)
- HP Inc. (HPQ)
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Eric S. Yuan, Founder & Chief Executive Officer
Eric S. Yuan founded Zoom in 2011. Before establishing Zoom, he served as Corporate Vice President of Engineering at Cisco. He was also a founding engineer and Vice President of Engineering at Webex, where he expanded his team from 10 to over 800 engineers and contributed to revenue growth from $0 to over $800M. Yuan departed Cisco to found Zoom after his proposal for a new smartphone-friendly video conferencing system was turned down. He initially funded Zoom by borrowing from friends and family due to a lack of investor interest. Zoom's initial public offering in 2019 was recognized as one of the highest-performing tech IPOs.
Michelle Chang, Chief Financial Officer
Michelle Chang was appointed Chief Financial Officer of Zoom, with her role effective starting October 7, 2024. Prior to joining Zoom, she held the position of Corporate Vice President and CFO of Microsoft's Commercial Sales & Partner Organization. Her extensive tenure at Microsoft included various other finance leadership roles, such as Corporate Vice President and CFO of Modern Workplace (including Office and Teams) and Cyber Security. Chang began her career as an Audit & Consulting Senior at Arthur Andersen.
Velchamy Sankarlingam, President of Product and Engineering
Velchamy Sankarlingam joined Zoom in 2020 and is responsible for leading the company's Product, Engineering, DevOps, Digital Transformation, and Support functions. Before his time at Zoom, he was the Senior Vice President of Cloud Services Development and Operations at VMware, where he managed an R&D business unit, oversaw all infrastructure (including one of the largest private clouds), and facilitated VMware's transition to a SaaS model. Earlier in his career, he served as Vice President of Engineering and Operations at Cisco, specifically for Webex. He also held Vice President positions at Webex and Presenter.com, both of which were acquired by Cisco and Webex respectively. His career also includes experience at Andersen Consulting (now Accenture), IBM, Network Computing Devices, and Standard Microsystems.
Aparna Bawa, Chief Operating Officer
Aparna Bawa serves as Zoom's Chief Operating Officer, a role she has held since May 2020, following her tenure as Chief Legal Officer. Prior to joining Zoom in 2018, she was Senior Vice President and General Counsel for Magento Commerce, which was acquired by Adobe in 2018. Earlier, as Vice President and General Counsel for Nimble Storage, she played a key role in the company's initial public offering in 2013 and its subsequent sale to Hewlett Packard Enterprise in 2017. Bawa also led legal and corporate development functions for Inphi Corp. Her background includes experience as an investment banker at Lehman Brothers and Deutsche Bank, where she managed numerous IPO and M&A transactions for technology sector clients. She began her career as a corporate and securities attorney at Wilson Sonsini Goodrich & Rosati.
Abhisht Arora, Chief Strategy Officer
Abhisht Arora joined Zoom in 2021 as Chief Strategy Officer, where he is responsible for driving key growth initiatives, monetization strategies, corporate development, and strategic planning. Before his role at Zoom, he was Vice President of Product at Microsoft Teams. Arora's career at Microsoft spanned over 20 years, during which he held senior business and product leadership positions across various divisions, including Xbox, Bing, Windows, Office, and Surface. He is credited with product innovations such as the creation of Xbox Game Pass and significantly boosting usage and revenue growth for Bing and Xbox Live.
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The key risks to Zoom Communications (ZM) are:
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Intense Competition and Market Saturation
Zoom operates in a highly competitive market against established players such as Microsoft (Teams), Google (Meet), and Cisco (Webex), which often bundle their video conferencing services with other products. This competition can lead to lower pricing, eroded market share, and increased customer acquisition costs. The market for video communications has also experienced saturation following its rapid growth during the pandemic, which could limit Zoom's future growth opportunities and make customer acquisition and retention more challenging.
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Rapid Technological Changes and AI-Related Challenges
The fast-paced evolution of technology in the communications sector, including the rise of new AI-driven solutions, poses a continuous threat to Zoom's relevance. Zoom must consistently innovate and adapt its platform to maintain its customer base and market share. Furthermore, the company's use of generative artificial intelligence (AI) in its products and services introduces new operational challenges, potential legal liabilities, reputational concerns, and competitive and regulatory risks that could adversely affect its business.
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Security, Privacy, and Regulatory Concerns
Zoom has faced significant scrutiny and investigations concerning its user privacy policies, encryption methods, and overall data security practices. Past incidents like "Zoombombing" and concerns about data breaches have raised questions about trust. While Zoom has implemented enhanced security measures and encryption protocols to address these issues, the company remains susceptible to data breaches and must continue to comply with evolving regulatory and privacy requirements across various regions to avoid potential harm to its business and legal liability.
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The increasing ubiquity and feature maturation of unified communication platforms bundled within larger enterprise software ecosystems, notably Microsoft Teams (as part of Microsoft 365) and Google Meet (as part of Google Workspace). These comprehensive offerings increasingly provide comparable video conferencing, chat, and telephony services, diminishing the perceived need for standalone subscriptions to specialized communication platforms like Zoom for many businesses already paying for these broader suites.
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Zoom Communications (symbol: ZM) operates within several large addressable markets for its main products and services:
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Unified Communications Platform (encompassing Zoom Meetings, Zoom Phone, Zoom Chat, Zoom Rooms): The global unified communications market was valued at approximately USD 136.11 billion in 2023 and is projected to reach around USD 417.86 billion by 2030, growing at a compound annual growth rate (CAGR) of 17.4% from 2024 to 2030. Other estimates place the global market at USD 146.2 billion in 2024, expected to reach USD 530.5 billion by 2033, with a CAGR of 14.63% from 2025-2033. North America accounted for 26.0% of the global unified communications market in 2023.
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Zoom Phone (Cloud Phone System): The global cloud telephony service market is projected to reach US$ 26.8 billion in 2026 and US$ 48.4 billion by 2033, exhibiting a CAGR of 8.8% between 2026 and 2033. Another estimate indicates the global cloud telephony service market size reached USD 23.9 billion in 2024 and is expected to reach USD 47.8 billion by 2033, with a CAGR of 7.99% during 2025-2033. North America leads this market, holding approximately 41% of the global market share.
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Zoom Events, OnZoom, and Zoom Webinars (Virtual Events): The global virtual events industry market was valued at $392.10 billion in 2023 and is estimated to reach $1,388.4 billion by 2035, growing at a CAGR of 11.2% from 2024 to 2035. Other reports show the global virtual events market at USD 98.07 billion in 2024, projected to reach USD 297.16 billion by 2030, with a CAGR of 20.3% from 2025 to 2030. North America held the major share of the market in 2023 and accounted for 39.8% of the global virtual events market in 2024.
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Zoom Contact Center: The global contact center software market was valued at USD 40.9 billion in 2024 and is projected to reach USD 152.4 billion by 2033, exhibiting a CAGR of 15.7% from 2025-2033. Another source indicates the global contact center software market size was worth around USD 46.18 billion in 2024 and is predicted to grow to around USD 399.41 billion by 2034, with a CAGR of roughly 21.8% between 2025 and 2034. North America dominates this market, holding over 35.7% in 2024.
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Zoom Communications (ZM) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and product expansions.
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Expansion and Monetization of AI-powered Solutions: Zoom is heavily investing in and expecting revenue growth from its AI-powered features, particularly the AI Companion. The strategy includes selling AI Companion as a standalone product to basic users and as an add-on for enterprise customers. This focus on AI is central to Zoom's evolution into an "AI-powered system of action for modern work" and is expected to open new revenue streams.
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Growth in Enterprise Customers and Upselling within Existing Accounts: A significant driver of revenue growth for Zoom is the continued acquisition of new enterprise customers and the expansion of services within its existing large client base. The company has seen consistent year-over-year growth in the number of customers contributing more than $100,000 in trailing 12-month revenue, which now constitutes a substantial portion of its total revenue. This focus on the up-market enterprise segment demonstrates a strategy to increase average customer spending.
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Increased Adoption and Performance of Zoom Phone and Zoom Contact Center: Zoom Phone and Zoom Contact Center (ZCC) are identified as key emerging growth businesses with strong performance. These products are driving competitive displacements and are crucial components of Zoom's broader unified communications platform, contributing significantly to future revenue acceleration.
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Platform Diversification and Ecosystem Expansion: Beyond its core video conferencing, Zoom is transforming into a comprehensive work platform encompassing products like Zoom Team Chat, Zoom Events, and Zoom Docs. This strategic shift aims to integrate various communication and collaboration tools into an "AI-first work platform," enhancing its ecosystem and creating opportunities for revenue growth through a broader suite of offerings and integrations.
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Share Repurchases
- Zoom Video Communications announced an equity buyback plan on February 26, 2024. Under this program, as of January 31, 2026, the company repurchased 36,312,622 shares for a total of $2,700 million.
- In November 2025, Zoom's Board authorized an additional $1.0 billion for share repurchases, supplementing the $310.4 million remaining authorization as of October 31, 2025.
- As of January 31, 2026, Zoom had $1.0 billion remaining in its authorized share repurchase program.
Outbound Investments
- In May 2023, Zoom Ventures made a strategic investment of $51 million in the AI startup Anthropic.
- As of March 2026, analysts estimate Zoom's stake in Anthropic could be valued as high as $4.4 billion.
- In 2021, Zoom acquired assets from Liminal to enhance its virtual event capabilities and also acquired Kites GmbH for real-time Machine Translation solutions.
Capital Expenditures
- Zoom's capital expenditures averaged $116 million annually for the fiscal years ending January 2021 to 2025.
- Capital expenditures peaked at $136.6 million in the fiscal year ending January 2025.
- For fiscal year 2027, the company forecasts normalized capital expenditures to be $785 million, with a primary focus on investing in AI and expanding offerings in areas like contact center and employee experience solutions.
Peer Outperformance in Application Software
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 56.1% | 179.7% | 288.0% | TTMI 806% · FLEX 677% · JBL 408% |
| Semiconductor Materials & Equipment | 27 | 130.8% | 66.9% | 100.2% | AEHR 928% · AXTI 528% · KLAC 470% |
| Technology Distributors | 9 | 30.2% | 66.3% | 83.9% | CLMB 351% · AVT 164% · SNX 119% |
| Communications Equipment | 36 | 19.3% | 79.7% | 67.7% | AAOI 1267% · LITE 890% · ANET 754% |
| Electronic Components | 26 | 49.9% | 62.7% | 60.4% | CLS 3241% · BELFA 1279% · COHR 358% |
| Semiconductors | 55 | 21.1% | 20.9% | 18.4% | POET 1845% · MU 1312% · NVDA 912% |
| Technology Hardware, Storage & Peripherals | 21 | 37.2% | 77.3% | 16.9% | DELL 1079% · STX 992% · SMCI 942% |
| Internet Services & Infrastructure | 6 | 19.8% | 40.5% | 13.7% | DOCN 53% · GDDY 35% · VRSN 35% |
| Electronic Equipment & Instruments | 27 | -7.3% | 8.8% | -8.2% | PI 197% · OSIS 108% · ACFN 98% |
| IT Consulting & Other Services | 28 | -23.8% | -11.8% | -28.6% | CHRN 533058% · APLD 1150% · TSSI 665% |
| Application Software ← | 123 | -23.9% | -14.3% | -46.5% | VIDA 199900% · INLX 4861% · PLTR 554% |
| Systems Software | 68 | -9.9% | 0.1% | -57.6% | PAYS 447% · QNC 392% · PANW 327% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 184.22 |
| Mkt Cap | 322.0 |
| Rev LTM | 53,632 |
| Op Inc LTM | 12,758 |
| FCF LTM | 13,960 |
| FCF 3Y Avg | 12,563 |
| CFO LTM | 14,964 |
| CFO 3Y Avg | 13,374 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 11.5% |
| Rev Chg 3Y Avg | 8.5% |
| Rev Chg Q | 14.2% |
| QoQ Delta Rev Chg LTM | 3.4% |
| Op Inc Chg LTM | 21.8% |
| Op Inc Chg 3Y Avg | 28.7% |
| Op Mgn LTM | 24.5% |
| Op Mgn 3Y Avg | 22.2% |
| QoQ Delta Op Mgn LTM | 0.2% |
| CFO/Rev LTM | 38.0% |
| CFO/Rev 3Y Avg | 35.3% |
| FCF/Rev LTM | 21.2% |
| FCF/Rev 3Y Avg | 23.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 322.0 |
| P/S | 6.4 |
| P/Op Inc | 25.9 |
| P/EBIT | 23.3 |
| P/E | 24.9 |
| P/CFO | 17.6 |
| Total Yield | 4.9% |
| Dividend Yield | 0.5% |
| FCF Yield 3Y Avg | 5.7% |
| D/E | 0.0 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 0.1% |
| 3M Rtn | 9.9% |
| 6M Rtn | 29.8% |
| 12M Rtn | 32.8% |
| 3Y Rtn | 80.2% |
| 1M Excs Rtn | -0.0% |
| 3M Excs Rtn | 5.4% |
| 6M Excs Rtn | 15.3% |
| 12M Excs Rtn | 15.6% |
| 3Y Excs Rtn | 10.8% |
Comparison Analyses
Price Behavior
| Market Price | $101.33 | |
| Market Cap ($ Bil) | 29.7 | |
| First Trading Date | 04/18/2019 | |
| Distance from 52W High | -9.4% | |
| 50 Days | 200 Days | |
| DMA Price | $95.35 | $90.32 |
| DMA Trend | up | up |
| Distance from DMA | 6.3% | 12.2% |
| 3M | 1YR | |
| Volatility | 44.2% | 43.6% |
| Downside Capture | 130.54 | 122.81 |
| Upside Capture | 103.46 | 119.16 |
| Correlation (SPY) | 29.8% | 26.7% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.79 | 1.29 | 1.01 | 0.72 | 0.88 | 0.87 |
| Up Beta | 3.91 | 1.33 | 0.18 | 0.05 | 0.46 | 0.74 |
| Down Beta | 1.22 | -0.81 | 0.50 | 0.20 | 0.43 | 0.81 |
| Up Capture | 193% | 197% | 137% | 140% | 126% | 85% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 9 | 20 | 28 | 65 | 129 | 378 |
| Down Capture | 292% | 163% | 156% | 98% | 115% | 101% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 12 | 22 | 36 | 62 | 122 | 370 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ZM | |
|---|---|---|---|---|
| ZM | 22.5% | 43.5% | 0.58 | - |
| Sector ETF (XLK) | 43.4% | 26.2% | 1.34 | 23.1% |
| Equity (SPY) | 19.7% | 12.8% | 1.13 | 26.3% |
| Gold (GLD) | 24.6% | 29.2% | 0.75 | 2.7% |
| Commodities (DBC) | 43.8% | 20.3% | 1.67 | 1.3% |
| Real Estate (VNQ) | 9.1% | 13.6% | 0.39 | 0.5% |
| Bitcoin (BTCUSD) | -28.1% | 43.8% | -0.63 | 12.7% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ZM | |
|---|---|---|---|---|
| ZM | -21.5% | 44.8% | -0.40 | - |
| Sector ETF (XLK) | 19.7% | 25.9% | 0.68 | 47.0% |
| Equity (SPY) | 12.8% | 17.2% | 0.57 | 49.0% |
| Gold (GLD) | 19.1% | 18.8% | 0.82 | 5.3% |
| Commodities (DBC) | 10.7% | 19.5% | 0.43 | 4.3% |
| Real Estate (VNQ) | 1.7% | 18.9% | -0.01 | 33.2% |
| Bitcoin (BTCUSD) | 10.2% | 52.6% | 0.38 | 26.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ZM | |
|---|---|---|---|---|
| ZM | 5.1% | 54.2% | 0.34 | - |
| Sector ETF (XLK) | 24.4% | 25.0% | 0.88 | 32.5% |
| Equity (SPY) | 15.3% | 17.9% | 0.72 | 25.9% |
| Gold (GLD) | 12.4% | 16.3% | 0.62 | 8.0% |
| Commodities (DBC) | 7.9% | 18.1% | 0.35 | 4.0% |
| Real Estate (VNQ) | 4.8% | 20.7% | 0.19 | 12.4% |
| Bitcoin (BTCUSD) | 63.7% | 66.2% | 1.03 | 14.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 9/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/25/2026 | -7.0% | -6.0% | |
| 5/21/2026 | 9.2% | 5.0% | -10.7% |
| 2/25/2026 | -11.6% | -8.7% | -7.2% |
| 11/24/2025 | 9.8% | 9.0% | 9.8% |
| 8/21/2025 | 12.7% | 10.5% | 14.2% |
| 5/21/2025 | -0.2% | -2.8% | -6.1% |
| 2/24/2025 | -8.5% | -8.4% | -3.7% |
| 8/21/2024 | 13.0% | 17.4% | 12.1% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 8 | 10 | 9 |
| # Negative | 16 | 14 | 14 |
| Median Positive | 9.5% | 8.4% | 12.1% |
| Median Negative | -7.7% | -10.4% | -9.8% |
| Max Positive | 40.8% | 20.3% | 44.6% |
| Max Negative | -16.7% | -24.1% | -26.1% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/25/2026 | -7.0% | -6.0% | |
| 5/21/2026 | 9.2% | 5.0% | -10.7% |
| 2/25/2026 | -11.6% | -8.7% | -7.2% |
| 11/24/2025 | 9.8% | 9.0% | 9.8% |
| 8/21/2025 | 12.7% | 10.5% | 14.2% |
| 5/21/2025 | -0.2% | -2.8% | -6.1% |
| 2/24/2025 | -8.5% | -8.4% | -3.7% |
| 8/21/2024 | 13.0% | 17.4% | 12.1% |
| 5/20/2024 | -0.4% | -3.2% | -9.0% |
| 2/26/2024 | 8.0% | 10.4% | 5.1% |
| 11/20/2023 | -0.1% | 2.3% | 5.8% |
| 8/21/2023 | -2.1% | 0.4% | 2.3% |
| 5/22/2023 | -8.1% | -8.0% | -5.5% |
| 2/27/2023 | 1.2% | -3.2% | -7.0% |
| 11/21/2022 | -3.9% | -12.1% | -12.9% |
| 8/22/2022 | -16.5% | -16.9% | -22.1% |
| 5/23/2022 | 5.6% | 20.3% | 31.7% |
| 2/28/2022 | -7.4% | -18.6% | -4.8% |
| 11/22/2021 | -14.7% | -12.7% | -20.3% |
| 8/30/2021 | -16.7% | -13.7% | -25.9% |
| 6/1/2021 | -0.2% | 4.1% | 18.1% |
| 3/1/2021 | -9.0% | -24.1% | -23.5% |
| 11/30/2020 | -15.1% | -14.7% | -26.1% |
| 8/31/2020 | 40.8% | 7.9% | 44.6% |
| SUMMARY STATS | |||
| # Positive | 8 | 10 | 9 |
| # Negative | 16 | 14 | 14 |
| Median Positive | 9.5% | 8.4% | 12.1% |
| Median Negative | -7.7% | -10.4% | -9.8% |
| Max Positive | 40.8% | 20.3% | 44.6% |
| Max Negative | -16.7% | -24.1% | -26.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 08/26/2026 | 10-Q |
| 04/30/2026 | 05/22/2026 | 10-Q |
| 01/31/2026 | 02/27/2026 | 10-K |
| 10/31/2025 | 11/25/2025 | 10-Q |
| 07/31/2025 | 08/22/2025 | 10-Q |
| 04/30/2025 | 05/23/2025 | 10-Q |
| 01/31/2025 | 02/28/2025 | 10-K |
| 10/31/2024 | 11/26/2024 | 10-Q |
| 07/31/2024 | 08/23/2024 | 10-Q |
| 04/30/2024 | 05/22/2024 | 10-Q |
| 01/31/2024 | 03/04/2024 | 10-K |
| 10/31/2023 | 11/21/2023 | 10-Q |
| 07/31/2023 | 08/23/2023 | 10-Q |
| 04/30/2023 | 05/25/2023 | 10-Q |
| 01/31/2023 | 03/03/2023 | 10-K |
| 10/31/2022 | 11/23/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 08/26/2026 | 10-Q |
| 04/30/2026 | 05/22/2026 | 10-Q |
| 01/31/2026 | 02/27/2026 | 10-K |
| 10/31/2025 | 11/25/2025 | 10-Q |
| 07/31/2025 | 08/22/2025 | 10-Q |
| 04/30/2025 | 05/23/2025 | 10-Q |
| 01/31/2025 | 02/28/2025 | 10-K |
| 10/31/2024 | 11/26/2024 | 10-Q |
| 07/31/2024 | 08/23/2024 | 10-Q |
| 04/30/2024 | 05/22/2024 | 10-Q |
| 01/31/2024 | 03/04/2024 | 10-K |
| 10/31/2023 | 11/21/2023 | 10-Q |
| 07/31/2023 | 08/23/2023 | 10-Q |
| 04/30/2023 | 05/25/2023 | 10-Q |
| 01/31/2023 | 03/03/2023 | 10-K |
| 10/31/2022 | 11/23/2022 | 10-Q |
| 07/31/2022 | 08/24/2022 | 10-Q |
| 04/30/2022 | 05/25/2022 | 10-Q |
| 01/31/2022 | 03/07/2022 | 10-K |
| 10/31/2021 | 11/23/2021 | 10-Q |
| 07/31/2021 | 08/31/2021 | 10-Q |
| 04/30/2021 | 06/02/2021 | 10-Q |
| 01/31/2021 | 03/18/2021 | 10-K |
| 10/31/2020 | 12/04/2020 | 10-Q |
| 07/31/2020 | 09/03/2020 | 10-Q |
| 04/30/2020 | 06/05/2020 | 10-Q |
| 01/31/2020 | 03/20/2020 | 10-K |
| 10/31/2019 | 12/09/2019 | 10-Q |
Recent Forward Guidance
Updated 8/26/2026Latest: Q2 2027 Earnings Reported 8/25/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2027 Revenue | Reported | 1.27 Bil | 1.28 Bil | 1.28 Bil | ||||
| Q3 2027 Operating Income | Reported | 510.00 Mil | 512.50 Mil | 515.00 Mil | ||||
| Q3 2027 EPS | Reported | 1.46 | 1.47 | 1.48 | ||||
| 2027 Revenue | Reported | 5.08 Bil | 5.09 Bil | 5.09 Bil | 0.1% | Raised | Guidance: 5.08 Bil for 2027 | |
| 2027 Operating Income | Reported | 2.06 Bil | 2.07 Bil | 2.08 Bil | 0 | Affirmed | Guidance: 2.07 Bil for 2027 | |
| 2027 EPS | Reported | 6.08 | 6.1 | 6.12 | 2.0% | Raised | Guidance: 5.98 for 2027 | |
| 2027 Free Cash Flow | Reported | 1.78 Bil | 1.80 Bil | 1.82 Bil | 4.7% | Raised | Guidance: 1.72 Bil for 2027 | |
Prior: Q1 2027 Earnings Reported 5/21/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2027 Non-GAAP Income from Operations | Reported | 508.00 Mil | 510.50 Mil | 513.00 Mil | 4.3% | Higher New | Guidance: 489.50 Mil for Q1 2027 | |
| Q2 2027 Revenue | Reported | 1.26 Bil | 1.27 Bil | 1.27 Bil | 3.7% | Higher New | Guidance: 1.22 Bil for Q1 2027 | |
| Q2 2027 Non-GAAP Diluted EPS | Reported | 1.45 | 1.46 | 1.47 | 3.6% | Higher New | Guidance: 1.41 for Q1 2027 | |
| 2027 Non-GAAP Income from Operations | Reported | 2.06 Bil | 2.07 Bil | 2.08 Bil | 0.7% | Raised | Guidance: 2.06 Bil for 2027 | |
| 2027 Revenue | Reported | 5.08 Bil | 5.08 Bil | 5.09 Bil | 0.3% | Raised | Guidance: 5.07 Bil for 2027 | |
| 2027 Non-GAAP Diluted EPS | Reported | 5.96 | 5.98 | 6 | 3.3% | Raised | Guidance: 5.79 for 2027 | |
| 2027 Free Cash Flow | Reported | 1.70 Bil | 1.72 Bil | 1.74 Bil | 0.0% | Affirmed | Guidance: 1.72 Bil for 2027 | |
Q4 2026 Earnings Reported 2/25/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2027 Non-GAAP Income from Operations | Reported | 487.00 Mil | 489.50 Mil | 492.00 Mil | ||||
| Q1 2027 Revenue | Reported | 1.22 Bil | 1.22 Bil | 1.23 Bil | ||||
| Q1 2027 Non-GAAP Diluted EPS | Reported | 1.4 | 1.41 | 1.42 | ||||
| 2027 Non-GAAP Income from Operations | Reported | 2.05 Bil | 2.06 Bil | 2.06 Bil | ||||
| 2027 Revenue | Reported | 5.07 Bil | 5.07 Bil | 5.08 Bil | 4.4% | Higher New | Guidance: 4.85 Bil for 2026 | |
| 2027 Non-GAAP Diluted EPS | Reported | 5.77 | 5.79 | 5.81 | -2.9% | Lower New | Guidance: 5.96 for 2026 | |
| 2027 Free Cash Flow | Reported | 1.70 Bil | 1.72 Bil | 1.74 Bil | -8.0% | Lower New | Guidance: 1.87 Bil for 2026 | |
Q3 2026 Earnings Reported 11/24/2025
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | Reported | 1.23 Bil | 1.23 Bil | 1.24 Bil | 1.6% | Higher New | Guidance: 1.21 Bil for Q3 2026 | |
| Q4 2026 Non-GAAP Diluted EPS | Reported | 1.48 | 1.49 | 1.49 | 3.8% | Higher New | Guidance: 1.43 for Q3 2026 | |
| 2026 Revenue | Reported | 4.85 Bil | 4.85 Bil | 4.86 Bil | 0.5% | Raised | Guidance: 4.83 Bil for 2026 | |
| 2026 Non-GAAP Diluted EPS | Reported | 5.95 | 5.96 | 5.97 | 2.3% | Raised | Guidance: 5.83 for 2026 | |
| 2026 Free Cash Flow | Reported | 1.86 Bil | 1.87 Bil | 1.88 Bil | 6.2% | Raised | Guidance: 1.76 Bil for 2026 | |
Insider Activity
Updated 9/3/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 9032026 | 95.82 | 12,100 | 1,159,452 | 2,203,726 | Form |
| 2 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 9032026 | 95.34 | 12,100 | 1,153,611 | 2,192,624 | Form |
| 3 | Sankarlingam, Velchamy | Pres. of Engineering & Product | Direct | Sell | 8142026 | 91.98 | 7,644 | 703,089 | 13,649,989 | Form |
| 4 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 8072026 | 100.20 | 12,100 | 1,212,376 | 2,304,316 | Form |
| 5 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 8072026 | 100.17 | 12,100 | 1,212,078 | 2,303,749 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 9032026 | 95.82 | 12,100 | 1,159,452 | 2,203,726 | Form |
| 2 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 9032026 | 95.34 | 12,100 | 1,153,611 | 2,192,624 | Form |
| 3 | Sankarlingam, Velchamy | Pres. of Engineering & Product | Direct | Sell | 8142026 | 91.98 | 7,644 | 703,089 | 13,649,989 | Form |
| 4 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 8072026 | 100.20 | 12,100 | 1,212,376 | 2,304,316 | Form |
| 5 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 8072026 | 100.17 | 12,100 | 1,212,078 | 2,303,749 | Form |
| 6 | Subotovsky, Santiago | Direct | Sell | 8062026 | 101.33 | 7,911 | 801,650 | 12,875,438 | Form | |
| 7 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 7152026 | 90.65 | 12,100 | 1,096,901 | 2,084,838 | Form |
| 8 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 7152026 | 91.68 | 45,724 | 4,192,159 | 2,108,549 | Form |
| 9 | Chang, Michelle | Chief Financial Officer | Direct | Sell | 7132026 | 90.80 | 8,489 | 770,820 | 3,219,119 | Form |
| 10 | Subotovsky, Santiago | Direct | Sell | 7062026 | 90.15 | 2,637 | 237,724 | 12,490,552 | Form | |
| 11 | Chang, Michelle | Chief Financial Officer | Direct | Sell | 6162026 | 93.83 | 327 | 30,682 | 2,858,719 | Form |
| 12 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 6042026 | 106.50 | 12,100 | Form | ||
| 13 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 6042026 | 111.61 | 12,100 | Form | ||
| 14 | Subotovsky, Santiago | Direct | Sell | 6032026 | 109.78 | 5,274 | 578,998 | 15,107,072 | Form | |
| 15 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 5062026 | 108.23 | 12,100 | Form | ||
| 16 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 5062026 | 106.60 | 12,100 | Form | ||
| 17 | Subotovsky, Santiago | Direct | Sell | 5052026 | 106.58 | 5,274 | 562,097 | 15,228,200 | Form | |
| 18 | Subotovsky, Santiago | Direct | Sell | 5052026 | 102.85 | 2,643 | 271,844 | 15,238,494 | Form | |
| 19 | Subotovsky, Santiago | Direct | Sell | 4202026 | 87.32 | 2,643 | 230,776 | 13,167,156 | Form | |
| 20 | Subotovsky, Santiago | see footnote | Sell | 4202026 | 87.32 | 2,388 | Form | |||
| 21 | Sankarlingam, Velchamy | Pres. of Engineering & Product | Direct | Sell | 4172026 | 85.44 | 7,645 | 653,191 | 12,130,035 | Form |
| 22 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 4152026 | 82.23 | 15,273 | 1,255,887 | 3,025,707 | Form |
| 23 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 4152026 | 81.22 | 69,923 | 5,678,836 | 2,988,408 | Form |
| 24 | Chang, Michelle | Chief Financial Officer | Direct | Sell | 4132026 | 81.32 | 8,489 | 690,331 | 2,477,595 | Form |
| 25 | Sankarlingam, Velchamy | Pres. of Engineering & Product | Direct | Sell | 3112026 | 78.24 | 2,590 | 202,642 | 10,722,323 | Form |
| 26 | Subotovsky, Santiago | Direct | Sell | 3062026 | 77.42 | 2,475 | 191,619 | 11,879,755 | Form | |
| 27 | Subotovsky, Santiago | Direct | Sell | 2092026 | 90.39 | 2,475 | 223,716 | 14,093,383 | Form | |
| 28 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 2042026 | 89.31 | 12,100 | Form | ||
| 29 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 2042026 | 93.01 | 12,100 | Form | ||
| 30 | Bawa, Aparna | Chief Operating Officer | See footnote | Sell | 1212026 | 81.37 | 12,137 | 987,553 | 160,944 | Form |
| 31 | Chang, Michelle | Chief Financial Officer | Direct | Sell | 1132026 | 86.54 | 8,417 | 728,424 | 2,205,262 | Form |
| 32 | Sankarlingam, Velchamy | Pres. of Engineering & Product | Direct | Sell | 1132026 | 86.55 | 7,568 | 654,997 | 11,786,305 | Form |
| 33 | Subotovsky, Santiago | Direct | Sell | 1072026 | 86.01 | 2,475 | 212,877 | 12,490,437 | Form | |
| 34 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 12172025 | 87.29 | 73,378 | Form | ||
| 35 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 12172025 | 87.05 | 73,378 | Form | ||
| 36 | Sankarlingam, Velchamy | Pres. of Engineering & Product | Direct | Sell | 12112025 | 87.84 | 2,595 | 227,945 | 11,740,607 | Form |
| 37 | Subotovsky, Santiago | Direct | Sell | 12082025 | 86.05 | 2,475 | 212,985 | 12,709,713 | Form | |
| 38 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 12042025 | 84.62 | 0 | Form | ||
| 39 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 12042025 | 85.66 | 0 | Form | ||
| 40 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 12042025 | 86.08 | 0 | Form | ||
| 41 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 12042025 | 85.03 | 0 | Form | ||
| 42 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 12042025 | 85.97 | 0 | Form | ||
| 43 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 12042025 | 86.71 | 0 | Form | ||
| 44 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 11192025 | 81.27 | 73,378 | Form | ||
| 45 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 11192025 | 82.73 | 73,378 | Form | ||
| 46 | Subotovsky, Santiago | Direct | Sell | 11062025 | 84.15 | 2,475 | 208,262 | 12,636,145 | Form | |
| 47 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 11052025 | 84.16 | 73,378 | Form | ||
| 48 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 11052025 | 86.15 | 73,378 | Form | ||
| 49 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 10242025 | 82.85 | 73,378 | Form | ||
| 50 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 10242025 | 82.65 | 73,383 | Form | ||
| 51 | Bawa, Aparna | Chief Operating Officer | See footnote | Sell | 10202025 | 79.77 | 10,528 | 839,860 | 157,793 | Form |
| 52 | Yuan, Eric S | Chief Executive Officer | See footnote | Sell | 10152025 | 79.76 | 33,692 | Form | ||
| 53 | Sankarlingam, Velchamy | Pres. of Engineering & Product | Direct | Sell | 10142025 | 82.00 | 7,660 | 628,121 | 10,889,201 | Form |
| 54 | Chang, Michelle | Chief Financial Officer | Direct | Sell | 10142025 | 82.00 | 33,956 | 2,784,318 | 1,684,153 | Form |
| 55 | Subotovsky, Santiago | Direct | Sell | 10082025 | 80.78 | 2,475 | 199,929 | 12,330,486 | Form | |
| 56 | Sankarlingam, Velchamy | Pres. of Engineering & Product | Direct | Sell | 9112025 | 85.09 | 2,595 | 220,809 | 11,082,292 | Form |
| 57 | Subotovsky, Santiago | Direct | Sell | 9092025 | 83.40 | 2,475 | 206,424 | 12,937,519 | Form |
Investor Activity (13F)
Updated Sep 6, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Comprehensive Financial Management LLC | $94.2 Mil | 3.1% | 38 | Hold | 13F |
| Oribel Capital Management, LP | $15.2 Mil | 2.3% | 41 | New | 13F |
| Benchstone Capital Management LP | $18.3 Mil | 2.1% | 38 | New | 13F |
| Nishkama Capital, LLC | $12.7 Mil | 1.8% | 39 | New | 13F |
| Mudita Advisors LLP | $6.3 Mil | 1.3% | 28 | New | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Comprehensive Financial Management LLC | $94.2 Mil | 3.1% | 38 | Hold | 13F |
| Benchstone Capital Management LP | $18.3 Mil | 2.1% | 38 | New | 13F |
| Oribel Capital Management, LP | $15.2 Mil | 2.3% | 41 | New | 13F |
| Nishkama Capital, LLC | $12.7 Mil | 1.8% | 39 | New | 13F |
| Mudita Advisors LLP | $6.3 Mil | 1.3% | 28 | New | 13F |
ZM Trade Sentinel
Constructive
CONVICTION RATIONALE
Conviction is constructive based on accelerating execution in the core Enterprise segment, where revenue growth hit a three-year high of 7.8%. Strong forward-looking bookings, with non-current RPO up 25%, suggest this momentum can continue. The primary uncertainty is the intense, structural competition from larger, bundled rivals, which keeps conviction in check.
STOCK ARCHETYPE
Enterprise SaaS(Number of Enterprise Customers * Average Contract Value) + (Number of Online Customers * ARPU) The mix shift towards larger, multi-product Enterprise platform deals and the monetization of high-margin AI add-ons and services.
INVESTMENT THESIS
Evidence suggests the transition is working, driven by new products gaining traction and displacing legacy vendors.
- Enterprise revenue growth accelerated to 7.8% year-over-year, its strongest rate in 3 years.
- Remaining Performance Obligations (RPO) grew 14% to $4.5 billion, outpacing current revenue growth.
- The number of customers paying over $100,000 annually grew 8.2% to 4,625.
- Full-year 2027 guidance for revenue, EPS, and free cash flow was raised.
- Enterprise net dollar expansion rate improved to 99% from 98% a year ago.
PRIMARY RISK
Competition from bundled suites like Microsoft Teams is the primary threat, backed by financial and R&D resources that are orders of magnitude larger than Zoom's.
- Microsoft's revenue is 66.5 times larger than Zoom's.
- Microsoft's competing M365 Copilot offering has over 30 million paid seats.
- The Enterprise net dollar expansion rate of 99% indicates slight net customer contraction.
- Gross margin declined 0.4 percentage points year-over-year due to higher AI-related expenses.
| KPI | Status | Rationale |
|---|---|---|
| Enterprise Net Dollar Expansion Rate | 99% for the trailing 12 months ended Q2 FY2027 - Turning around | The metric improved from 98% two quarters ago to 99% last quarter, where it has held steady. This indicates stabilization and a slight year-over-year improvement, but it remains below the key 100% level, suggesting that churn and downgrades are still slightly outweighing expansion and upsells within the existing enterprise customer base. |
| Enterprise Revenue Growth | 7.8% year-over-year growth in Q2 FY2027 - Accelerating | Enterprise revenue growth has accelerated for two consecutive quarters, reaching what the CEO described as its "strongest rate in 3 years." This acceleration is driven by the company's platform strategy and strong performance in newer products. |
| Customers contributing >$100,000 in TTM revenue | 4,625 (Q2 FY2027) | This metric indicates the company's success in attracting and growing its base of large enterprise customers, which is central to its growth strategy. |
| Enterprise Trailing 12-Month Net Dollar Expansion Rate | 99% (Q2 FY2027) | This rate reflects the net change in spending from existing enterprise customers. A rate below 99% indicates that churn and downgrades are slightly greater than upsells and expansion within the installed base. |
| Online Average Monthly Churn | 2.9% (Q2 FY2027) | This measures the rate of customer attrition in the self-service online business. The current rate is in line with the prior year, signaling stability in this customer segment. |
Platform Execution vs. Incumbent Scale
BULL VIEW
Bulls believe Zoom's superior, easy-to-use product can continue winning consolidation deals, evidenced by Enterprise revenue growth accelerating to 7.8% and non-current RPO growth of 25%, proving its strategy is working.
CORE TENSION
PREVAILING SENTIMENT
The latest evidence favors the bull case on execution momentum. Zoom's accelerating enterprise growth and raised full-year guidance show its strategy is currently delivering results despite the competitive landscape.
BEAR VIEW
Bears argue Microsoft's massive scale and bundled offering will inevitably squeeze Zoom's growth and margins. They point to Microsoft's 17.8% revenue growth and its 30 million paid Copilot seats as evidence of its momentum.
| Timeline | Event & Metric To Watch |
|---|---|
11/2/2026 | RingCentral Earnings Report Watch: Peer RingCentral (RNG) is scheduled to report earnings. |
11/10/2026 | Intensifying Competitive Pressure Watch: Commentary from ZM or peers (CSCO, CRM) on market share, win rates, and pricing for collaboration/UCaaS products. |
11/23/2026 | Decelerating Revenue Growth Watch: Q3 revenue growth rate versus 4.9% and management's Q4 revenue guidance. |
11/23/2026 | AI-Driven Margin Erosion Watch: Quarterly gross and operating margin trends and commentary on AI infrastructure costs versus AI monetization progress. |
12/1/2026 | Salesforce Earnings Report Watch: Peer Salesforce (CRM) is scheduled to report earnings. |
No set date | DOJ Investigation Developments Watch: Any company or DOJ press release or filing regarding the EDNY or NDCA investigations. |
| Date | Event | Stock Impact |
|---|---|---|
2026-08-25 | Reports Q2 Results, Raises Outlook Details: The company reported Q2 revenue of $1,277.2 million, up 4.9% year-over-year, and raised its full fiscal year 2027 guidance for revenue, EPS, and free cash flow. | -10.5% $104.83 -> $93.83 |
2026-07-02 | Acquires Common Room Details: The company announced a definitive agreement to acquire Common Room, an AI-native Go-to-Market intelligence platform, to add buyer intelligence to its AI revenue platform. The acquisition closed in mid-July. | -5.7% $90.13 -> $84.96 |
2026-06-01 | Launches ZoomMate AI Teammate Details: The company launched ZoomMate, an agentic AI work surface designed to help users move from conversations to execution by combining search, AI-generated deliverables, and automated execution in third-party apps. | +10.1% $101.59 -> $111.88 |
2026-05-22 | Reports Q1 Results, Raises Guidance Details: The company reported better-than-expected Q1 results, raised its fiscal year 2027 guidance, and announced its board authorized an additional $1.0 billion for share repurchases. | +3.5% $96.75 -> $100.09 |
2026-04-15 | New Chief Product Officer Hired Details: The company appointed Russell Dicker as Chief Product Officer to advance its AI-first product strategy. Dicker brings over 25 years of product leadership experience from Microsoft, Google, and Amazon. | +5.2% $82.40 -> $86.68 |
2026-03-10 | AI-Powered Office Suite Announced Details: The company introduced its own AI Docs, Slides, and Sheets apps, and announced that AI-powered avatars for representing users in meetings would be available later in the month. | -1.3% $77.06 -> $76.05 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: ZM trades at roughly 45% annualized options-implied volatility versus about 13% for the S&P 500 (3.5x the market), around the 81st percentile of its own trailing year. A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
MSFT - Microsoft
The Dominant IncumbentMicrosoft offers exposure to the same secular trends but with immense scale, a deeply integrated product suite, and a structural advantage in R&D and infrastructure spending.
CSCO - Cisco Systems
The Legacy TurnaroundCisco provides a more diversified enterprise technology exposure beyond collaboration, with a significant hardware footprint and deep, long-standing customer relationships. Its enterprise product orders recently grew 21%.
Zoom is an AI-powered 'system of action' platform, moving beyond its video meeting roots to unify enterprise-wide communications and workflows.
Zoom is transitioning from a single-product phenomenon into a durable, multi-product enterprise platform. Growth is now driven by the Enterprise segment, where Zoom is displacing legacy vendors by offering a unified solution for workplace collaboration (Workplace, Phone) and customer engagement (Contact Center, Virtual Agent). The company's 'AI-first' strategy is key to this transition, embedding AI across the platform to turn conversations into completed actions and create new revenue streams.
Continued acceleration in Enterprise revenue growth, sustained high-double-digit growth in the Zoom CX portfolio, and evidence of successful monetization from new AI products like ZoomMate and Custom AI Companion.
A stall in Enterprise growth, a decline in the net dollar expansion rate, or an inability to compete effectively with bundled offerings from Microsoft and Google, leading to margin pressure.
Minor fluctuations in the Online segment's monthly churn or modest quarterly beats/misses in that segment, as the company's core growth story is now centered on the Enterprise business.
Repricing Catalyst
Evidence that the company's AI-first platform strategy is translating into durable, accelerating Enterprise growth and successful monetization, particularly in the high-growth Customer Experience (CX) market.
Zoom Communications — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Application Software Resources |
| Capterra |
| Software Advice |
| InfoWorld |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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