Zoom Communications Stock vs Competition: Who Wins?
As of January 26, 2026, Zoom Communications (ZM) stock delivered solid 19% returns over the past year, but how does it truly measure up against peers scaling in evolving cloud communication trends? A closer look reveals exceptional free cash flow margins and an attractive valuation (PE 17.89x), yet modest revenue growth. ZM’s upside hinges on innovation and platform expansion amidst fierce competition.
- ZM’s 22.9% operating margin is high, but below MSFT’s 46.3%, reflecting MSFT’s cloud scale and enterprise software stronghold.
- ZM’s 3.8% LTM revenue growth is low, lagging diversified peers like MSFT, suggesting core market maturity.
- ZM’s 19.1% stock gain (17.9 PE) trails CSCO/GOOGL, signaling investor doubt on its growth compared to AI-leveraged peers.
Here’s how Zoom Communications stacks up across size, valuation, and profitability versus key peers.
| ZM | MSFT | CSCO | GOOGL | RNG | CRM | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 28.5 | 3,495.6 | 304.7 | 4,027.8 | 2.5 | 217.5 |
| Revenue ($ Bil) | 4.8 | 293.8 | 57.7 | 385.5 | 2.5 | 40.3 |
| PE Ratio | 17.9 | 33.3 | 29.5 | 32.4 | 187.1 | 30.1 |
| LTM Revenue Growth | 3.8% | 15.6% | 8.9% | 13.4% | 5.5% | 8.4% |
| LTM Operating Margin | 22.9% | 46.3% | 22.5% | 32.2% | 3.8% | 22.0% |
| LTM FCF Margin | 41.6% | 26.6% | 22.1% | 19.1% | 20.8% | 32.0% |
| 12M Market Return | 19.1% | 6.7% | 26.8% | 67.1% | -20.7% | -30.8% |
For more details on Zoom Communications, read Buy or Sell ZM Stock. Below we compare ZM’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ZM | 3.8% | 3.1% | 3.1% | 7.1% | |
| MSFT | 15.6% | 14.9% | 15.7% | 6.9% | |
| CSCO | 8.9% | 5.3% | -5.6% | 10.6% | |
| GOOGL | 13.4% | – | 13.9% | 8.7% | 9.8% |
| RNG | 5.5% | – | 9.0% | 10.8% | 24.7% |
| CRM | 8.4% | 8.7% | 11.2% | 18.3% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ZM | 22.9% | 17.4% | 11.6% | 5.6% | |
| MSFT | 46.3% | 45.6% | 44.6% | 41.8% | |
| CSCO | 22.5% | 22.1% | 24.1% | 27.3% | |
| GOOGL | 32.2% | – | 32.1% | 27.4% | 26.5% |
| RNG | 3.8% | – | 0.1% | -9.0% | -18.4% |
| CRM | 22.0% | 20.2% | 17.2% | 5.9% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ZM | 17.9 | 26.3 | 38.5 | 205.6 | |
| MSFT | 33.3 | 35.3 | 35.5 | 38.7 | |
| CSCO | 29.5 | 30.1 | 23.2 | 16.4 | |
| GOOGL | 32.4 | – | 38.5 | 32.4 | 30.4 |
| RNG | 187.1 | – | -45.6 | -20.1 | -3.7 |
| CRM | 30.1 | 41.1 | 78.7 | 1255.0 |
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