What's Going On With Zoom Video Stock Today?

Benzinga · 11/25 19:40

Shares of Zoom Video Communications, Inc. (NASDAQ:ZM) are trading higher Monday. The company is set to release earnings results after the market close. Here’s what you need to know.

What To Know: Zoom Video is due to report third-quarter financial results for fiscal 2025 after the bell. Analysts expect the company to report earnings of $1.31 per share for the quarter, up from $1.29 per share a year ago. Revenue is projected at $1.16 billion, compared to $1.14 billion in the same period last year, according to Benzinga Pro.

In the company’s most-recent quarter, Zoom reported earnings of $1.39 per share, beating the estimate of $1.21 by 14.88%. Revenue came in at $1.16 billion, exceeding expectations and reflecting a 2.09% increase year-over-year.

"In Q2, we outperformed our guidance across the board and grew operating cash flow and free cash flow by 33.7% and 26.2% year over year, respectively, demonstrating our continued commitment to efficient growth," Zoom CEO Eric Yuan said last quarter.

"We also saw strength in large accounts, with customers contributing more than $100,000 in trailing 12 months revenue increasing by 7.1% year over year, and resilience in our Online business, with Online average monthly churn reaching its lowest ever rate.”

Zoom Video shares have gained nearly 24% since the company last reported earnings. The stock is currently trading at new 52-week highs ahead of earnings. Zoom Video has a 52-week low of $55.06, according to Benzinga Pro.

Multiple analysts have weighed in on Zoom shares in recent weeks leading up to earnings. Rosenblatt analyst Catharine Trebnick maintained Zoom with a Buy rating and price target of $78. Morgan Stanley analyst Meta Marshall maintained an Equal-Weight rating and raised the price target from $68 to $86.

ZM Price Action: Zoom shares were up 3.57% at $88.96 at the time of publication, according to Benzinga Pro.

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