Key Stats for Zoom Stock
- Current Price: ~$106 (May 22, 2026)
- Q1 FY27 Total Revenue: $1.239B, +5.5% YoY
- Q1 FY27 Non-GAAP EPS: $1.55, +8% YoY
- Q1 FY27 Non-GAAP Operating Margin: 41.1%
- AI Companion Paid MAU Growth: +184% YoY
- FY27 Revenue Guidance (raised): $5.08B–$5.09B, +4.4% YoY at midpoint
- FY27 Non-GAAP EPS Guidance (raised): $5.96–$6.00
- TIKR Model Price Target: $103
- Implied Return: (2%) over ~5 years
Zoom Stock Beats Q1 Estimates and Raises Guidance, but TIKR’s Model Says the Price Already Reflects It
Zoom Communications, Inc. (ZM) reported Q1 FY27 total revenue of $1.239B, up 5.5% year over year, on May 21, 2026, beating the Street estimate of $1.224B by $14M and exceeding the high end of guidance.
Non-GAAP EPS came in at $1.55, up from $1.43 in the prior-year period and $0.13 above the high end of guidance.
Enterprise revenue grew 7.2% year over year to represent 61% of total revenue, up 1 point, while the number of customers contributing more than $100,000 in trailing 12-month revenue grew 8%.
AI Companion paid monthly active users grew 184% year over year, with My Notes surpassing 1.5 million monthly active users just four months after launch.
Zoom customer experience delivered high double-digit growth, with paid AI featured in 9 of the top 10 ZCX deals and 8 of the top 10 contact center deals displacing legacy CCaaS vendors.
Michelle Chang, CFO, stated on the Q1 FY27 earnings call that non-GAAP operating income of $509M exceeded the high end of guidance by $17M, “primarily driven by the accounting amortization change we discussed last quarter and our gross margin improvements.”
Management raised full-year revenue guidance to $5.08B–$5.09B, implying 4.4% growth at the midpoint, and increased non-GAAP EPS guidance to $5.96–$6.00.
The company repurchased 4.2 million shares for $362M in Q1 and announced an additional $1B buyback authorization, bringing total remaining capacity to $1.6B against a cash balance of $7.7B.
RPO grew 11% year over year to $4.3B, with noncurrent RPO up 19%, reflecting the longer-duration contracts now common in phone and contact center deals.
TIKR’s $103 Target on Zoom Stock Implies the Current Price Already Bakes In the Recovery
TIKR’s valuation model prices Zoom Communications, Inc. at $103 by January 2031, implying a negative 2% total return from the current price of ~$106, or negative 0.4% annualized.
The mid-case assumes a revenue CAGR of 3.2% and net income margins of 36.1%, and the model embeds a P/E multiple compression of 0.9% annually, meaning even if Zoom delivers on those margin assumptions, a flat-to-compressing multiple leaves almost no room for price appreciation from today’s level.
The Q1 beat and guidance raise confirm that Zoom stock is executing, but the TIKR model frames the harder question: whether 3% to 4% revenue growth over the next several years is enough to move a stock already trading at a premium to the model’s target.
The low case prices Zoom stock at $92 by January 2031, producing a negative 1.6% IRR, a scenario where revenue CAGR slows to 2.9% and net income margins compress to 33% as AI investment costs weigh on profitability.
The mid case at $114 and a 1% IRR represents a narrow path where margins hold at 36.1% and revenue compounds at 3.2%, delivering modest gains but requiring steady ZCX and AI monetization execution through FY31.
The high case at $138 and a 3.1% IRR requires 3.5% revenue CAGR and net income margins expanding to 38.4%, an outcome that would depend on custom AI Companion, Zoom AI Services, and contact center each becoming meaningfully larger revenue contributors within the forecast window.
Should You Invest in Zoom Communications, Inc.?
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