Wedbush Expects Lower Earnings for Zoom Video Communications

Zoom Video Communications, Inc. (NASDAQ:ZM) – Stock analysts at Wedbush cut their Q1 2026 earnings per share (EPS) estimates for shares of Zoom Video Communications in a report released on Tuesday, February 25th. Wedbush analyst D. Ives now expects that the company will post earnings per share of $0.57 for the quarter, down from their prior forecast of $0.61. The consensus estimate for Zoom Video Communications’ current full-year earnings is $2.93 per share. Wedbush also issued estimates for Zoom Video Communications’ Q1 2026 earnings at $0.57 EPS, Q2 2026 earnings at $0.58 EPS, Q2 2026 earnings at $0.58 EPS, Q3 2026 earnings at $0.61 EPS, Q3 2026 earnings at $0.61 EPS, Q4 2026 earnings at $0.60 EPS, Q4 2026 earnings at $0.60 EPS, FY2026 earnings at $2.37 EPS, FY2026 earnings at $2.37 EPS, Q1 2027 earnings at $0.57 EPS, Q2 2027 earnings at $0.59 EPS, Q2 2027 earnings at $0.59 EPS, Q3 2027 earnings at $0.61 EPS, Q3 2027 earnings at $0.61 EPS, FY2027 earnings at $2.38 EPS and FY2027 earnings at $2.38 EPS.

Several other equities analysts have also commented on ZM. Needham & Company LLC reaffirmed a “hold” rating on shares of Zoom Video Communications in a research report on Tuesday. Mizuho lifted their price objective on shares of Zoom Video Communications from $90.00 to $105.00 and gave the stock an “outperform” rating in a research note on Tuesday, November 26th. Citigroup dropped their price objective on shares of Zoom Video Communications from $86.00 to $85.00 and set a “neutral” rating on the stock in a report on Tuesday, February 18th. Hsbc Global Res upgraded Zoom Video Communications to a “strong-buy” rating in a research note on Tuesday, November 26th. Finally, Morgan Stanley boosted their price target on Zoom Video Communications from $86.00 to $96.00 and gave the company an “equal weight” rating in a research note on Wednesday, December 18th. Fifteen investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $90.05.

Zoom Video Communications Stock Performance

Zoom Video Communications stock opened at $73.70 on Friday. The stock has a market cap of $22.59 billion and a PE ratio of 24.57. The stock has a 50-day moving average of $82.30 and a two-hundred day moving average of $76.76. Zoom Video Communications has a one year low of $55.06 and a one year high of $92.80.

Insider Buying and Selling

In other news, CEO Eric S. Yuan sold 118,036 shares of the stock in a transaction dated Monday, January 13th. The shares were sold at an average price of $79.03, for a total value of $9,328,385.08. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Shane Crehan sold 1,551 shares of the business’s stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $84.94, for a total transaction of $131,741.94. Following the transaction, the chief accounting officer now owns 3,251 shares in the company, valued at $276,139.94. The trade was a 32.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 382,242 shares of company stock worth $31,230,938. Insiders own 10.78% of the company’s stock.

Institutional Investors Weigh In On Zoom Video Communications

Large investors have recently made changes to their positions in the stock. Baker Avenue Asset Management LP boosted its stake in Zoom Video Communications by 82.1% during the third quarter. Baker Avenue Asset Management LP now owns 28,593 shares of the company’s stock worth $1,994,000 after buying an additional 12,890 shares during the last quarter. HighTower Advisors LLC boosted its position in shares of Zoom Video Communications by 449.4% during the 3rd quarter. HighTower Advisors LLC now owns 63,618 shares of the company’s stock valued at $4,429,000 after acquiring an additional 52,039 shares during the last quarter. Merit Financial Group LLC acquired a new stake in Zoom Video Communications during the fourth quarter worth about $1,072,000. Robeco Institutional Asset Management B.V. raised its stake in Zoom Video Communications by 15.4% during the third quarter. Robeco Institutional Asset Management B.V. now owns 1,257,714 shares of the company’s stock worth $87,713,000 after purchasing an additional 167,618 shares during the period. Finally, Eagle Asset Management Inc. acquired a new position in Zoom Video Communications in the 3rd quarter valued at about $62,038,000. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

Zoom Video Communications Company Profile

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.