Key Stats for Zoom Communications Stock
- Price change for Zoom Communications stock: 9%
- $ZM Share Price as of May. 22: $106
- 52-Week High: $112
- $ZM Stock Price Target: $99
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What Happened?
Zoom Communications (ZM) stock surged roughly 9% after the company delivered a clean earnings beat for Q1 fiscal year 2027.
- Revenue came in at $1.24 billion vs. estimates of $1.22 billion.
- Non-GAAP EPS hit $1.55 against the estimate of $1.42.
- A year ago, that figure was $1.43 — so profits are clearly moving in the right direction.
The biggest driver? Zoom’s Enterprise segment, which makes up the bulk of its business.
- That unit grew 7.2% year over year to $755.7 million.
- Larger customers are sticking around and spending more, which is exactly what investors want to see.
AI is also picking up steam.
CEO Eric Yuan highlighted that paid users of AI Companion grew 184% year over year. The company’s My Notes feature hit 1.5 million licensed users just four months after launch.
These aren’t just vanity metrics — they signal that customers are actually using Zoom’s newer tools.
On the balance sheet, Zoom ended the quarter with roughly $7.7 billion in cash and marketable securities. That’s a slight dip from $7.8 billion last quarter, partly due to the company repurchasing $362 million in shares.
The board also just approved a fresh $1 billion buyback authorization, showing confidence in where ZM stock is headed.
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What the Market Is Telling Us About Zoom Communications Stock
The after-hours pop in Zoom Communications stock reflects genuine relief from investors. The company has spent years trying to shake its pandemic-era identity, and results like these help that case. Revenue growth of 5.5% isn’t explosive, but it’s steady — and it beat guidance.
Full-year guidance was raised, with Zoom now projecting revenue of $5.08B–$5.09B and EPS of $5.96–$6.00, both ahead of consensus.
The one soft spot was Q2 guidance, which came in roughly in line but left little room for upside. That could temper enthusiasm when markets open Friday.
Still, Zoom Communications stock is telling a cleaner story than it has in some time.
AI adoption is real, enterprise demand is holding, and the company keeps generating strong free cash flow. For now, the market seems willing to reward that.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
