Zoom stock holds rating post revenue guidance lift

Published 22/05/2025, 10:10
Zoom stock holds rating post revenue guidance lift

On Thursday, Citizens JMP analysts maintained a Market Perform rating for Zoom (NASDAQ:ZM) Technologies (OTC: ZOOM) stock, a micro-cap company with a market capitalization of just $2.99 million. The company recently updated its full-year revenue forecast, increasing it by $15 million at the midpoint. This adjustment is attributed to a $1 price hike for monthly professional service plans, balanced against a conservative forecast for enterprise sales amid economic uncertainties. According to InvestingPro analysis, the company’s overall financial health score stands at 1.46, indicating potential challenges ahead.

Zoom Technologies disclosed its non-GAAP earnings per share (EPS) for the first quarter of fiscal year 2026 to be between $1.36 and $1.37, slightly above the consensus estimate of $1.35. The non-GAAP operating income is projected to be between $460.0 million and $465.0 million on revenue ranging from $1.195 billion to $1.200 billion, which is a roughly 3% year-over-year increase and aligns closely with the consensus revenue estimate of $1.193 billion.

For the full fiscal year 2026, Zoom anticipates non-GAAP EPS to be between $5.56 and $5.59, surpassing the consensus estimate of $5.41. The projected non-GAAP operating income is set to be between $1.865 billion and $1.875 billion on revenue of $4.800 billion to $4.810 billion, representing a similar 3% year-over-year growth. The company’s free cash flow forecast is between $1.680 billion and $1.720 billion, slightly below the consensus of $1.732 billion.

Despite these financial updates, Zoom’s stock remained relatively unchanged in after-market trading. InvestingPro data shows the stock has actually gained 34.34% year-to-date, significantly outperforming the roughly 1% decline in the Russell 3000 index over the same period. The company’s latest guidance and financial projections have been released amidst a challenging macroeconomic landscape, which Zoom has factored into its enterprise business outlook. Based on InvestingPro’s Fair Value analysis, the stock appears to be overvalued at current levels, though the company maintains a healthy current ratio of 2.46, suggesting strong short-term liquidity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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