Zoom Stock Drops 12% After Weak Profit Forecast. Here’s What’s Driving the Move

Rexielyn Diaz3 minute read
Reviewed by: Thomas Richmond
Last updated Feb 27, 2026

Key Stats for Zoom Stock

  • Price Change for Zoom stock: -12%
  • Zoom Share Price as of Feb. 26: $76
  • 52-Week High: $98
  • Zoom Stock Price Target: $98

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What Happened?

Zoom Communications (ZM) stock fell 12% on February 26 after the company reported Q4 results. Shares closed at $76 following weaker-than-expected profit guidance. The stock had previously traded above $92 in January.

For Q4, Zoom reported adjusted EPS of $1.44 versus IBES estimates of $1.49, according to Reuters. Revenue topped expectations, helped by enterprise growth. However, management forecast quarterly profit below analyst estimates.

Investors reacted negatively to the softer outlook. As a result, shares declined despite a solid sales performance. The move pulled the stock further from its 52-week high of $98.

Zoom is expected to report Q1 2027 results on May 22, 2026. Investors will be watching margins and AI-driven product traction closely.

Zoom Stock Price Targets (TIKR)

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What the Market Is Telling Us About Zoom Stock

Zoom Communications provides an AI-first work platform that includes Meetings, Phone, Contact Center, and AI Companion solutions. The company rebranded from Zoom Video Communications in November 2024. It serves enterprise and public sector customers globally.

From a financial standpoint, Zoom maintains a strong balance sheet. LTM net debt stands at negative $7.8 billion, reflecting a large net cash position. Enterprise value is $14.6 billion versus a $22.4 billion market cap.

The company’s 5-year beta is 0.90, which suggests moderate volatility. The average three-month trading volume is 3.75 million shares. Float percentage stands at 88.4%.

Zoom has also launched AI-focused tools such as Zoom Virtual Agent 3.0 and AI Companion updates. However, competitive pressure in unified communications remains intense. Guidance appears to be the key driver of the recent decline.

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Should You Invest in Zoom Communications, Inc.?

The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.

Pull up Zoom, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.

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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!

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