Zoom Communications, Inc. (ZM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Zoom Communications, Inc. Do?
Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Hardware-as-a-Service allows users to access video communication technology from third party equipment; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom's video-based communications solutions, as well as integrate Zoom's technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California. Zoom Communications, Inc. (ZM) is classified as a large-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Eric S. Yuan and employs approximately 8,480 people. With a market capitalization of $23.8B, ZM is one of the prominent companies in the Technology sector.
Zoom Communications, Inc. (ZM) Stock Rating — Hold (April 2026)
As of April 2026, Zoom Communications, Inc. receives a Hold rating with a composite score of 48.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ZM ranks #1,842 out of 4,446 stocks in our coverage universe. Within the Technology sector, Zoom Communications, Inc. ranks #203 of 584 stocks, placing it in the upper half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ZM Stock Price and 52-Week Range
Zoom Communications, Inc. (ZM) currently trades at $79.15. The stock lost $4.88 (5.8%) in the most recent trading session. The 52-week high for ZM is $97.58, which means the stock is currently trading -18.9% from its annual peak. The 52-week low is $64.41, putting the stock 22.9% above its annual trough. Recent trading volume was 6.1M shares, reflecting moderate market activity.
Is ZM Overvalued or Undervalued? — Valuation Analysis
Zoom Communications, Inc. (ZM) carries a value factor score of 61/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 17.28x, compared to the Technology sector average of 45.27x — a discount of 62%. The price-to-book ratio stands at 2.52x, versus the sector average of 3.16x. The price-to-sales ratio is 5.16x, compared to 1.06x for the average Technology stock. On an enterprise value basis, ZM trades at 23.43x EV/EBITDA, versus 12.79x for the sector.
Overall, ZM's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Zoom Communications, Inc. Profitability — ROE, Margins, and Quality Score
Zoom Communications, Inc. (ZM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.6%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 12.0% versus the sector average of -1.0%.
On a margin basis, Zoom Communications, Inc. reports gross margins of 76.9%, compared to 50.9% for the sector. The operating margin is 21.9% (sector: -0.5%). Net profit margin stands at 29.6%, versus -1.5% for the average Technology stock. Revenue growth is running at 5.8% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
ZM Debt, Balance Sheet, and Financial Health
Zoom Communications, Inc. has a debt-to-equity ratio of 22.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.33x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $1.22B.
ZM has a beta of 0.89, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Zoom Communications, Inc. is 66/100, reflecting average volatility within the normal range for its sector.
Zoom Communications, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Zoom Communications, Inc. reported revenue of $4.80B and earnings per share (EPS) of $6.32. Net income for the quarter was $1.43B. Gross margin was 76.9%. Operating income came in at $1.06B.
In FY 2026, Zoom Communications, Inc. reported revenue of $4.87B and earnings per share (EPS) of $6.32. Net income for the quarter was $1.90B. Gross margin was 77.0%. Revenue grew 4.4% year-over-year compared to FY 2025. Operating income came in at $1.12B.
In Q3 2026, Zoom Communications, Inc. reported revenue of $1.23B and earnings per share (EPS) of $2.05. Net income for the quarter was $613M. Gross margin was 77.9%. Revenue grew 4.4% year-over-year compared to Q3 2025. Operating income came in at $310M.
In Q2 2026, Zoom Communications, Inc. reported revenue of $1.22B and earnings per share (EPS) of $1.19. Net income for the quarter was $359M. Gross margin was 77.6%. Revenue grew 4.7% year-over-year compared to Q2 2025. Operating income came in at $322M.
Over the past 8 quarters, Zoom Communications, Inc. has demonstrated a growth trajectory, with revenue expanding from $1.16B to $4.80B. Investors analyzing ZM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ZM Dividend Yield and Income Analysis
Zoom Communications, Inc. (ZM) does not currently pay a dividend. This is common among growth-oriented companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
ZM Momentum and Technical Analysis Profile
Zoom Communications, Inc. (ZM) has a momentum factor score of 43/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 40/100 reflects moderate short selling activity.
ZM vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Zoom Communications, Inc. (ZM) ranks #203 out of 584 stocks based on the Blank Capital composite score. This places ZM in the upper half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing ZM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ZM vs S&P 500 (SPY) comparison to assess how Zoom Communications, Inc. stacks up against the broader market across all factor dimensions.
ZM Next Earnings Date
No upcoming earnings date has been announced for Zoom Communications, Inc. (ZM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ZM? — Investment Thesis Summary
Zoom Communications, Inc. presents a balanced picture with arguments on both sides. The value score of 61/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 66/100) reduces downside risk.
In summary, Zoom Communications, Inc. (ZM) earns a Hold rating with a composite score of 48.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ZM stock.
Related Resources for ZM Investors
Explore more research and tools: ZM vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare ZM head-to-head with peers: ZM vs IHS, ZM vs VRSN, ZM vs ESE.