Zoom Communications, Inc. (ZM) Stock Price & How to Invest

Zoom Communications is a cloud communications company best known for its video-conferencing platform, which became a household name during the pandemic. Its core product lets people host video meetings, webinars, and calls reliably across devices, and the business sells subscriptions to individuals, small businesses, and large enterprises. Since the pandemic boom faded, Zoom has worked to evolve from a single video-meeting product into a broader unified-communications and workplace platform: Zoom Phone (cloud telephony), Zoom Contact Center, Team Chat, Zoom Rooms for hybrid offices, Zoom Docs and Whiteboard, and an expanding suite of AI features branded Zoom AI Companion. Most revenue still comes from meeting subscriptions, but management is pushing the higher-growth phone, contact-center, and AI products to re-accelerate growth and deepen enterprise relationships. Founded in 2011 and headquartered in San Jose, California, Zoom holds a large net cash position and competes against Microsoft Teams, Google, and Cisco in a crowded communications market.

The recent numbers fit that picture. In fiscal Q2 2027 (the quarter ended July 31, 2026), revenue was about $1.28 billion, up about 4.9% year over year, with Enterprise revenue up about 7.8% (credited partly to AI products) while Online revenue was roughly flat (up about 0.6%), and non-GAAP EPS of about $1.55 beat the roughly $1.48 consensus. Management raised its fiscal 2027 free cash flow outlook to about $1.78-1.82 billion but cut its Online outlook to flat. GAAP net income in that quarter jumped to about $1.54 billion, far above Zoom's usual run rate, which is why the trailing GAAP P/E (under 9x) looks much lower than the forward multiple (about 15x). The stock was up about 18% over one year as of October 16, 2026, and the next report, fiscal Q3 2027, is scheduled for November 24, 2026. Walnut is not an investment adviser, and this is descriptive context rather than a recommendation.

Zoom's central challenge is growth: after the pandemic surge, revenue growth slowed to low-to-mid single digits (about 4.9% in fiscal Q2 2027) as the core meetings market matured, and the online (small-business) segment stalled, with management lowering its fiscal 2027 Online outlook to flat. The dominant risk is Microsoft Teams, which is bundled for free or near-free with Microsoft 365 across most enterprises, plus Google Meet and Cisco Webex, making it hard for Zoom to win and retain seats without price pressure. AI is as much a threat as an opportunity if rivals' bundled AI proves good enough. The new products (Phone, Contact Center) must scale meaningfully to offset slowing meetings growth, which is not assured. Investors debate whether Zoom is a durable platform or a single-product utility facing commoditization, and the muted multiple reflects that uncertainty. Analysts expect fiscal 2028 EPS growth of only about 3%, so the stock depends heavily on buybacks and on AI or Contact Center lifting the growth rate.

25 analysts publish price targets on ZM, averaging $118.24 against a $94.19 price as of October 2026, or +25.5%. The published targets run from $79.00 to $135.00, a moderate spread, and the ratings split 18 buy, 11 hold, 1 sell. Over the last six months there has been 1 raise and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full ZM forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Zoom Communications, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Platform expansion beyond meetings. Zoom is broadening from video meetings into a full communications platform: Zoom Phone (cloud telephony), Contact Center, Team Chat, and collaboration tools. The most optimistic published target, $135.00, assumes this works close to its best case.

The case against. Zoom's central challenge is growth: after the pandemic surge, revenue growth slowed to low-to-mid single digits (about 4.9% in fiscal Q2 2027) as the core meetings market matured, and the online (small-business) segment stalled, with management lowering its fiscal 2027 Online outlook to flat. The most pessimistic target, $79.00, is roughly what ZM is worth if this bites instead.

Read the full bull and bear case on ZM, including what would have to change to break either one. Walnut is not an investment adviser.

No. Zoom Communications, Inc. (ZM) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Zoom Communications, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$5.0 billion
• Revenue growth (latest quarter): ~4.9% YoY (Enterprise ~7.8%, Online ~0.6%)
• Non-GAAP EPS (fiscal Q2 2027): ~$1.55 vs ~$1.48 est.
• Operating margin (GAAP, TTM): ~24-25%
• Free cash flow (TTM): ~$2.0 billion; FY2027 outlook ~$1.78-1.82 billion
• Cash and investments: ~$7.2 billion (debt ~$60 million)
• P/E (GAAP trailing / forward): ~9x / ~15x
• Market cap: ~$27.5 billion

As of October 16, 2026, Zoom traded around $94 per share, at roughly 15x forward earnings and about 16x EV/EBITDA, a modest multiple for a profitable software company that reflects slow top-line growth and competitive pressure from Microsoft despite high margins, strong free cash flow, and a large net cash pile. The trailing GAAP P/E under 9x is flattered by an unusually large GAAP profit in fiscal Q2 2027, so the forward figure is the cleaner read. Roughly a quarter of the market cap is cash. The 25 covering analysts have a mean target near $118, and investors weigh the cheap valuation and buybacks against the risk that growth stays muted and meetings commoditize.

Other names that sit close to ZM: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get ZM exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so ZM sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where ZM fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Zoom (ZM) trades at a modest multiple where a meaningful share of market cap is cash, with strong free cash flow funding aggressive buybacks while Phone, Contact Center, and AI must scale to offset mature meetings. In a portfolio it behaves as a cheap, cash-rich, low-growth software holding whose re-rating depends on whether it is a durable platform or a commoditizing single-product utility.

Whether ZM is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is ZM a buy or a sell?, and where the stock could go from here in the ZM stock forecast.

For income investors, whether ZM pays a dividend and how the payout looks is covered in does ZM pay a dividend? And to weigh ZM against a peer, read the full side-by-side comparisons: ZM vs MSFT and ZM vs GOOGL.