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ZM Zoom Communications Inc

NASDAQ
Information Technology
Technology
Earnings Nov 23 · after the close

$93.76

▼ 4.8%

Updated Oct 16, 2:25 PM ET

Report Card

ZM at a glance — five pillars scored 0–100 from real filed financials.

How the 0–100 rating is calculated
Value
—
Growth
—
Profitability
36
Health
100
Dividends
—

Overall: not rated yet. This stock's fundamentals ratios aren't loaded, so only the pillars its filings support are scored.

Key Metrics

Market Cap

—

P/E

—

Forward P/E (est.)

—

ROE

—

Revenue Growth

—

EPS Growth

—

Profit Margin

—

FCF Yield

—

Debt / Equity

—

ROIC

9.0%

Interest Coverage

—

Current Ratio

4.22x

Dividend Yield

—

Implied Growth (rev. DCF)

—

Rating Score

Not rated

Business Overview

Research

Zoom Communications Inc (ZM) is a NASDAQ-listed company in the Technology industry, within the Information Technology sector.

In its latest reported year it generated about $4.87B in revenue and $1.90B in net profit.

Our model hasn't rated ZM yet because its fundamentals ratios (P/E, margins, returns on capital, leverage) aren't loaded. Any financial history below comes straight from its SEC filings and refreshes automatically.

Economic Moat

Evidence of durable competitive advantage in the filed financials (9 years of history).

Profit margins and economic moats, explained
Wide moat signalsMoat evidence score: 79/100

The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.

Gross margin level100/100

76.3% average over the last 3 years

Gross margin stability54/100

±3.7 pts around 76.7% across 9 years

Revenue durability100/100

grew in 8 of the last 8 year-over-year periods

Free-cash-flow consistency100/100

positive in 9 of 9 years

Return on invested capital20/100

9.0% latest fiscal year

A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.

Revenue Growth

Research
How to read an income statement

4Y CAGR

4.4%

Revenue moved from $151.48M in 2018 to $4.87B in 2026, a 54.3% compound annual growth rate. The most recent year was roughly steady year over year. Slower, mature growth is common for established businesses.

0/1 checks passedROIC above 10%

Gross Margin

77.0%

Operating Margin

23.1%

Net Margin

39.0%

ROE

—

Debt Analysis

Research
1/1 checks passedShort-term bills covered

Total Debt

—

Net Debt

—

Net Debt / EBITDA

—

Debt / Equity

—

Leverage: debt-to-equity is n/a, with a current ratio of 4.2x. Detailed balance-sheet leverage is limited for this name.

Cash Flow Analysis

Research

Operating CF

$1.99B

Free Cash Flow

$1.92B

FCF Margin

39.5%

In the latest year Zoom Communications Inc produced about $1.99B of operating cash flow and $1.92B of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis

Research
What is a reasonable P/E ratio?

P/E

—

P/S

—

P/B

—

EV / EBITDA

—

ZM trades at n/a trailing earnings. Its valuation ratios aren't loaded yet, so there is no P/E to judge here.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

How this DCF estimate is calculated

DCF fair value / share

—

Current price

$93.76

—

Starting FCF (latest 10-K)

$1.92B

Growth, years 1–5

4.0%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$14.87B
PV of terminal value$18.16B
Estimated equity value$33.03B

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where ZM sits versus the Information Technology companies we cover.

TTM P/E
——
Forward P/E
——
P/S ratio
——
Revenue growth
——
EPS growth
——
Gross margin
77.0%Strong
Net margin
——
ROE
——

Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How ZM stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

ZM doesn't have a model rating yet (its fundamentals ratios aren't loaded), so it isn't ranked against the 98 rated Information Technology companies we cover.

P/E vs sector

—

median 36.2x

ROE vs sector

—

median 17.5%

Growth vs sector

—

median 17.7%

Sector rank

—

not rated yet

CompanyP/ERev Gr.Rating
ZMThis stock——Not rated
GWRE70.5x24.9%Neutral· 52
FIG——Weak· 29
U—7.5%Weak· 22
DT80.2x18.8%Weak· 38
DOCN58x17.6%Neutral· 47
GIB11.7x7.9%Neutral· 54
CRCL—51.5%Neutral· 50
Information Technology median36.2x17.7%58/100

Valuation vs. quality map

sector medianGWREDTDOCNGIBP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 98 rated companies among the 230 Information Technology stocks we cover. Educational, not a recommendation.

Key Risks

Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Analyst Ratings

What 39 Wall Street analysts covering ZM recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.

Buy
consensus · score 3.9 / 5 across 39 analysts
Strong Buy 11Buy 13Hold 14Sell 1Strong Sell 0

Analysts have turned more positive over the last three months (+3 pts of buy ratings).

Latest SEC Filings

ZM's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K

ZM — frequently asked questions

Is ZM a good stock to buy?

We don't give buy or sell advice. Review Zoom Communications Inc's fundamentals, valuation, and 5-year financials on this page, then make your own decision — and consider a licensed professional.

Where does ZM's data come from?

Live price data plus the annual financials in Zoom Communications Inc's SEC filings, refreshed automatically. Its fundamentals ratios aren't loaded yet, which is why it has no model rating.

How is the 5-year projection for ZM calculated?

It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.

Is this ZM analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ZM. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.