How Will Zoom Communications Stock React To Its Upcoming Earnings?
Zoom Communications (NASDAQ:ZM) is set to report its earnings on Monday, November 24, 2025. The company has $24 Bil in current market capitalization. Revenue over the last twelve months was $4.8 Bil, and it was operationally profitable with $971 Mil in operating profits and net income of $1.2 Bil. While the post-earnings stock reaction will depend on how the results and outlook stack up against investor expectations, a detailed look at historical results can aid you if you are an event-driven trader.
Here is how: either understand the historical odds and position yourself prior to the earnings announcement, or look at the correlation between immediate and medium-term returns post earnings and enter a trade one day after the announcement.
See earnings reaction history of all stocks
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Zoom Communications’s Historical Odds Of Positive Post-Earnings Return
Some observations on one-day (1D) post-earnings returns:
- There are 19 earnings data points recorded over the last five years, with 5 positive and 14 negative one-day (1D) returns observed. In summary, positive 1D returns were seen about 26% of the time.
- Notably, this percentage increases to 40% if we consider data for the last 3 years instead of 5.
- Median of the 5 positive returns = 8.0%, and median of the 14 negative returns = -7.7%
Additional data for observed 5-Day (5D) and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 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% |
| SUMMARY STATS | |||
| # Positive | 5 | 7 | 7 |
| # Negative | 14 | 12 | 12 |
| Median Positive | 8.0% | 10.4% | 12.1% |
| Median Negative | -7.7% | -12.4% | -10.9% |
| Max Positive | 13.0% | 20.3% | 31.7% |
| Max Negative | -16.7% | -24.1% | -26.1% |
Correlation Between 1D, 5D and 21D Historical Returns
A relatively less risky strategy (though not useful if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, find a pair that has the highest correlation, and execute the appropriate trade. For example, if 1D and 5D show the highest correlation, a trader can position themselves “long” for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data based on a 5-year and a 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.
| History | 1D_5D Returns | 1D_21D Returns | 5D_21D Returns |
|---|---|---|---|
| 5Y History | 21.3% | 45.6% | 15.7% |
| 3Y History | -16.5% | -17.0% | -18.7% |
Is There Any Correlation With Peer Earnings?
Sometimes, peer performance can have an influence on post-earnings stock reaction. In fact, the pricing-in might begin before the earnings are announced. Here is some historical data on the past post-earnings performance of Zoom Communications stock compared with the stock performance of peers that reported earnings just before Zoom Communications. For fair comparison, peer stock returns also represent post-earnings one-day (1D) returns.
| 1D Return | Peer Post-Earnings 1D Return | |||||
|---|---|---|---|---|---|---|
| ZM Earnings Dates | ZM | MSFT | GOOGL | CSCO | RNG | EGHT |
| 8/21/2025 | 12.7% | -1.6% | 5.0% | -4.8% | 23.4% | -4.7% |
| 5/21/2025 | -0.2% | 14.7% | 5.8% | 3.1% | -1.7% | -10.0% |
| 2/24/2025 | -8.5% | -8.5% | -13.1% | 1.1% | -6.0% | -4.2% |
| 8/21/2024 | 13.0% | 0.5% | -8.8% | 11.0% | -1.5% | -31.0% |
| 5/20/2024 | -0.4% | 6.8% | 13.4% | -5.1% | 24.1% | 18.8% |
| 2/26/2024 | 8.0% | -0.1% | -9.2% | -3.7% | 0.7% | -17.9% |
| 11/20/2023 | -0.1% | 14.4% | -1.8% | -9.4% | 7.3% | 38.4% |
| 8/21/2023 | -2.1% | -8.1% | 5.0% | 4.7% | -26.8% | -22.8% |
| 5/22/2023 | -8.1% | 16.9% | N/A* | 2.5% | N/A* | 18.9% |
| 2/27/2023 | 1.2% | N/A* | -16.6% | 0.6% | -29.9% | 8.6% |
| 11/21/2022 | -3.9% | -3.2% | -8.5% | 7.3% | 26.2% | 16.4% |
| 8/22/2022 | -16.5% | 10.5% | 8.8% | 2.3% | -9.6% | -12.9% |
| 5/23/2022 | 5.6% | -3.3% | -6.0% | -10.4% | -9.5% | -1.2% |
| 2/28/2022 | -7.4% | N/A* | -1.9% | 2.8% | -11.4% | N/A* |
| 11/22/2021 | -14.7% | 9.8% | 5.0% | -3.8% | -7.4% | -8.0% |
| 8/30/2021 | -16.7% | N/A* | N/A* | 7.2% | -5.1% | -3.0% |
| 6/1/2021 | -0.2% | N/A* | N/A* | 0.3% | -14.7% | -17.4% |
| 3/1/2021 | -9.0% | N/A* | 7.8% | -5.3% | -11.7% | N/A* |
| CORRELATION | -12.9% | -49.1% | -15.4% | 5.2% | -18.2% | |
* N/A indicates that the peer reported earnings after ZM
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