Upside case
Bull case
$124+44.0%
ZM would need investors to value it at roughly 21x earnings — about 6x more generous than today's 14x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
Zoom Communications, Inc. (ZM) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
49
analysts
19 bullish · 3 bearish · 49 covering ZM
Strong Buy
0
Buy
19
Hold
27
Sell
3
Strong Sell
0
Consensus Target
$119
+37.2% vs today
Scenario Range
$59 – $124
Model bear to bull value window
Coverage
49
Published analyst ratings
Valuation Context
14.3x
Forward P/E · Market cap $25.3B
ZM price targets
Three scenarios for where ZM stock could go
Current
~$86
Confidence
60 / 100
Updated
Jun 18, 2026
Where we are now
Current · $86
Bear
$59
Base
$94
Bull
$124
Market caseClosest to today
Base case
$94+9.3%
This is close to how the market is already pricing ZM — at roughly 16x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$59-31.1%
If investor confidence fades or macro conditions deteriorate, a 4x multiple contraction could push ZM down roughly 31% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Zoom Communications, Inc.
ZM · NASDAQTechnologySoftware - ApplicationJanuary year-end
Zoom is a video-first communications platform that provides cloud-based video conferencing, phone, chat, and webinar services. It generates revenue primarily through subscription fees from businesses and individual users — with enterprise customers contributing the majority of its sales — along with some advertising and hardware sales. Its key advantage is its reliable, easy-to-use platform that became the de facto standard for remote communication during the pandemic, creating strong network effects and high switching costs.
Market Cap
$25.3B
Revenue TTM
$4.9B
Net Income TTM
$2.1B
Net Margin
42.0%
ZM Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
+12.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$1.53/$1.38
Revenue
$1.2B/$1.2B
Q4 2025
EPS
$1.52/$1.44
Revenue
$1.2B/$1.2B
Q1 2026
EPS
$1.44/$1.49
Revenue
$1.2B/$1.2B
Q2 2026
EPS
$1.55/$1.42
Revenue
$1.2B/$1.2B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.53/$1.38 | +10.9% | $1.2B/$1.2B | +1.6% |
| Q4 2025 | $1.52/$1.44 | +5.6% | $1.2B/$1.2B | +1.3% |
| Q1 2026 | $1.44/$1.49 | -3.4% | $1.2B/$1.2B | +1.0% |
| Q2 2026 | $1.55/$1.42 | +9.2% | $1.2B/$1.2B | +1.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$5.4B
+9.9% YoY
FY2
$5.8B
+6.3% YoY
EPS Outlook
FY1
$5.89
-14.7% YoY
FY2
$6.22
+5.7% YoY
Trailing FCF (TTM)$2.0B
FCF Margin: 39.7%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
ZM beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
ZM Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2026
Total disclosed revenue $4.9B
Product Mix
Latest annual revenue by segment or product family
Reportable Segment
100.0%
+4.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
72.1%
+4.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Reportable Segment is the largest disclosed segment at 100.0% of FY 2026 revenue, up 4.4% YoY.
Americas is the largest reported region at 72.1%, up 4.7% YoY.
ZM Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $169 — implies +95.3% from today's price.
Upside to Fair Value
95.3%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ZM
14.0x
vs
S&P 500
24.4x
43% discount
vs Technology Trailing P/E
ZM
14.0x
vs
Technology
29.0x
52% discount
vs ZM 5Y Avg P/E
Today
14.0x
vs
5Y Average
26.9x
48% discount
Forward PE
14.3x
S&P 500
18.8x
-24%
Technology
22.3x
-36%
5Y Avg
—
—
Trailing PE
14.0x
S&P 500
24.4x
-43%
Technology
29.0x
-52%
5Y Avg
26.9x
-48%
PEG Ratio
0.62x
S&P 500
1.66x
-62%
Technology
1.51x
-59%
5Y Avg
—
—
EV/EBITDA
19.2x
S&P 500
15.2x
+26%
Technology
16.6x
+15%
5Y Avg
37.4x
-49%
Price/FCF
13.2x
S&P 500
20.7x
-36%
Technology
19.2x
-31%
5Y Avg
19.0x
-31%
Price/Sales
5.2x
S&P 500
3.1x
+68%
Technology
2.4x
+113%
5Y Avg
6.6x
-21%
Dividend Yield
—
S&P 500
1.91%
—
Technology
1.11%
—
5Y Avg
—
—
| Metric | ZM | S&P 500 | Technology | 5Y Avg ZM |
|---|---|---|---|---|
| Forward PE | 14.3x | 18.8x-24% | 22.3x-36% | — |
| Trailing PE | 14.0x | 24.4x-43% | 29.0x-52% | 26.9x-48% |
| PEG Ratio | 0.62x | 1.66x-62% | 1.51x-59% | — |
| EV/EBITDA | 19.2x | 15.2x+26% | 16.6x+15% | 37.4x-49% |
| Price/FCF | 13.2x | 20.7x-36% | 19.2x-31% | 19.0x-31% |
| Price/Sales | 5.2x | 3.1x+68% | 2.4x+113% | 6.6x-21% |
| Dividend Yield | — | 1.91% | 1.11% | — |
ZM trades above S&P 500 benchmarks on 2 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolZM Financial Health
Verdict
Strong
ZM generates $2.0B in free cash flow at a 39.7% margin — 10.4% ROIC signals a durable competitive advantage · returns 6.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$4.9B
Revenue Growth
TTM vs prior year
+5.0%
Gross Margin
Gross profit as a share of revenue
77.4%
Operating Margin
Operating income divided by revenue
24.2%
Net Margin
Net income divided by revenue
42.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$6.90
Free Cash Flow (TTM)
Cash generation after capex
$2.0B
FCF Margin
FCF as share of revenue — the primary cash quality signal
39.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
10.4%
ROA
Return on assets, trailing twelve months
17.8%
Cash & Equivalents
Liquid assets on the balance sheet
$1.3B
Net Cash
Cash exceeds total debt — no net leverage
$1.2B
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
21.8%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
6.4%
Dividend
—
Buyback
6.4%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.6B
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
293M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageZM Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Insider selling concerns
Substantial insider selling by CEO and communications director has raised investor concerns about the company's future prospects.
Medium
Competitive AI integration
Potential expansion into AI-enhanced features like automated meeting summaries and real-time translation may face stiff competition and execution risks.
Lower
Hybrid work adoption risks
Enterprise adoption of hybrid work solutions remains central, but slower-than-expected uptake could impact growth.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why ZM Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Strong balance sheet
The company's robust financial health is highlighted by its strong balance sheet, providing stability and limited downside risk.
High free cash flow yield
Zoom's 10% free cash flow yield indicates strong profitability and efficient capital management.
Modest growth optimism
The stock price appreciation reflects renewed investor confidence in Zoom's growth potential.
Cloud-based platform advantage
Zoom's cloud-based platform for video conferencing and online meetings offers secure, HD-quality solutions, positioning it well in the market.
AI productivity suite
The introduction of the Zoom AI Productivity Suite enhances its product offerings, potentially driving user engagement and revenue.
Attractive valuation metrics
With trailing and forward P/E ratios of 21.70 and 14.31 respectively, Zoom's stock appears reasonably valued compared to growth prospects.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
ZM Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$86.36
52W Range Position
38%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$69.15
+24.9% from the low
52-Week High
$114.74
-24.7% from the high
1 Month
-12.65%
3 Month
+12.99%
YTD
+3.6%
1 Year
+11.5%
3Y CAGR
+7.0%
5Y CAGR
-25.4%
10Y CAGR
+3.4%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
ZM vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
14.3x
vs 22.6x median
-37% below peer median
Revenue Growth
+9.9%
vs +10.7% median
-7% below peer median
Net Margin
42.0%
vs 19.7% median
+113% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ZM ZM Zoom Communications, Inc. | $25.3B | 14.3x | +9.9% | 42.0% | Hold | +37.2% |
MSF MSFT Microsoft Corporation | $2.82T | 22.6x | +8.8% | 39.3% | Buy | +45.5% |
GOO GOOGL Alphabet Inc. | $4.45T | 25.9x | +14.6% | 37.9% | Buy | +11.9% |
CSC CSCO Cisco Systems, Inc. | $471.2B | 28.0x | +6.4% | 19.7% | Buy | +3.1% |
RNG RNG RingCentral, Inc. | $3.1B | 7.1x | +11.1% | 3.3% | Buy | +20.3% |
NIC NICE NICE Ltd. | $5.1B | 7.6x | +10.7% | 17.6% | Buy | +40.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
ZM Dividend and Capital Return
ZM returns 6.4% annually — null% through dividends and 6.4% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
6.4%
Dividend + buyback return per year
Buyback Yield
6.4%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$1.6B
Estimated Shares Retired
19M
Approx. Share Reduction
6.4%
Shares Outstanding
Current diluted share count from the screening snapshot
293M
At 6.4%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
FAQ
7 questionsZM Investor Questions
Common questions answered from live analyst data and company financials.
01Is Zoom Communications, Inc. (ZM) stock a buy or sell in 2026?
Zoom Communications, Inc. (ZM) is rated Hold by Wall Street analysts as of 2026. Of 49 analysts covering the stock, 19 rate it Buy or Strong Buy, 27 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $119, implying +37.2% from the current price of $86. The bear case scenario is $59 and the bull case is $124.
02What is the ZM stock price target for 2026?
The Wall Street consensus price target for ZM is $119 based on 49 analyst estimates. The high-end target is $133 (+54.0% from today), and the low-end target is $104 (+20.4%). The base case model target is $94.
03Is Zoom Communications, Inc. (ZM) stock overvalued in 2026?
ZM trades at 14.3x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Zoom Communications, Inc. (ZM) stock in 2026?
The primary risks for ZM in 2026 are: (1) Insider selling concerns — Substantial insider selling by CEO and communications director has raised investor concerns about the company's future prospects. (2) Competitive AI integration — Potential expansion into AI-enhanced features like automated meeting summaries and real-time translation may face stiff competition and execution risks. (3) Hybrid work adoption risks — Enterprise adoption of hybrid work solutions remains central, but slower-than-expected uptake could impact growth. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Zoom Communications, Inc.'s revenue and earnings forecast?
Analyst consensus estimates ZM will report consensus revenue of $5.4B (+9.9% year-over-year) and EPS of $5.89 (-14.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $5.8B in revenue.
06When does Zoom Communications, Inc. (ZM) report its next earnings?
A confirmed upcoming earnings date for ZM is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Zoom Communications, Inc. generate?
Zoom Communications, Inc. (ZM) generated $2.0B in free cash flow over the trailing twelve months — a free cash flow margin of 39.7%. ZM returns capital to shareholders through and share repurchases ($1.6B TTM).