Equity Profile

ZM

Zoom Communications, Inc.

Information TechnologyApplication Software$29.8B

Aug20Thu

Pre-Earnings Brief

UpcomingQ2-2027After Close5:00 PM EDT

Company Snapshot

Zoom Communications, Inc. is a leading provider of video conferencing and communication software, primarily used for remote work and virtual meetings....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a crucial indicator of a company's profitability and financial health, and it will be closely watched this quarter given Zoom's recent strong performance.

N/A

Revenue Growth

Revenue growth will provide insight into how well Zoom is maintaining its market position and attracting new customers in a competitive environment.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

ZM Q2-2027 Earnings Preview

Context

Company Snapshot

Zoom Communications, Inc. is a leading provider of video conferencing and communication software, primarily used for remote work and virtual meetings. As a key player in the Information Technology sector, Zoom has benefited from the rise in remote work and digital communication, making it a significant company to watch as it adapts to changing market demands.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+84.95%

Avg Stock Reaction

-0.11%

Last Quarter Recap

In the last quarter, Zoom reported an EPS of $1.55, significantly exceeding expectations by nearly 66%. However, the stock declined by 2.69% the following day, indicating market skepticism despite the strong earnings.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for Zoom's upcoming earnings are mixed, with investors eager to see if the company can maintain its recent momentum in profitability and user growth.

Bull Case

Optimistically, if Zoom continues to exceed EPS expectations and shows strong revenue growth, it could signal a robust recovery and renewed investor confidence.

Bear Case

Conversely, if Zoom fails to meet expectations or shows signs of slowing user growth, it could lead to further declines in stock price and investor sentiment.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the reported EPS and how does it compare to previous quarters?

Given Zoom's recent history of exceeding EPS expectations, this will be a key indicator of ongoing profitability and investor confidence.

What is the growth rate of active users compared to last quarter?

User growth is critical for Zoom's long-term success, and any slowdown could raise concerns about its competitive position.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Zoom's ability to maintain user growth despite increased competition, which could lead to stronger-than-expected earnings.

Supporting Evidence

Zoom has consistently beaten EPS estimates in recent quarters, indicating strong operational performance.

The options market is pricing in a large move, suggesting that investors are expecting significant news that could drive the stock.

Insider selling may indicate a strategic shift rather than a lack of confidence in the company's future.

Key Risk

If user growth exceeds expectations, it could challenge the current bearish sentiment and lead to a positive reassessment of the stock.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Zoom can sustain its growth trajectory in a competitive landscape, making these metrics crucial.

Bull Confirmed If

An EPS of $1.70 or higher would confirm strong profitability and could lead to a positive market reaction.

Bear Confirmed If

An EPS below $1.20 would indicate potential issues in profitability and could lead to a negative market reaction.

Pre-Earnings Positioning

Options Market

Implied Move

±18.51%

Historical Avg

±1.8%

Pricing rich

The options market is pricing in a significant potential move, indicating that investors are anticipating volatility around the earnings report.

Options are pricing ±18.5% while ZM has averaged ±1.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

49.6%

Calls (1.0M)P/C Ratio: 0.31Puts (400K)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$9.8M

119,247 sh

5 insiders

Net

$9.8M

Net selling

Most Active Insiders· 25 open-market trades

Chief Executive OfficerYuan Eric S.
$6.9M
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoom beats expectations, history suggests the stock could see a modest increase, confirming the company's strong performance and growth potential.

In-Line / Cautious

If results are in line with expectations, the stock may remain stable, but cautious commentary could lead to volatility.

Miss

A miss on earnings could lead to a significant drop, as history suggests a negative reaction to disappointing results.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on user growth and retention rates.
2Details on new product offerings or enhancements.
3Management's outlook on competition and market share.
4Insights into customer feedback and satisfaction levels.
5Comments on cost management and profitability strategies.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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More Earnings This Week

5 Reports

Fabrinet

Company Snapshot

Zoom Communications, Inc. is a leading provider of video conferencing and communication software, primarily used for remote work and virtual meetings....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a crucial indicator of a company's profitability and financial health, and it will be closely watched this quarter given Zoom's recent strong performance.

N/A

Revenue Growth

Revenue growth will provide insight into how well Zoom is maintaining its market position and attracting new customers in a competitive environment.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

ZM Q2-2027 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+84.95%

Avg Stock Reaction

-0.11%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for Zoom's upcoming earnings are mixed, with investors eager to see if the company can maintain its recent momentum in profitability and user growth.

Bull Case

Optimistically, if Zoom continues to exceed EPS expectations and shows strong revenue growth, it could signal a robust recovery and renewed investor confidence.

Bear Case

Conversely, if Zoom fails to meet expectations or shows signs of slowing user growth, it could lead to further declines in stock price and investor sentiment.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the reported EPS and how does it compare to previous quarters?

Given Zoom's recent history of exceeding EPS expectations, this will be a key indicator of ongoing profitability and investor confidence.

What is the growth rate of active users compared to last quarter?

User growth is critical for Zoom's long-term success, and any slowdown could raise concerns about its competitive position.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Zoom's ability to maintain user growth despite increased competition, which could lead to stronger-than-expected earnings.

Supporting Evidence

Zoom has consistently beaten EPS estimates in recent quarters, indicating strong operational performance.

The options market is pricing in a large move, suggesting that investors are expecting significant news that could drive the stock.

Insider selling may indicate a strategic shift rather than a lack of confidence in the company's future.

Key Risk

If user growth exceeds expectations, it could challenge the current bearish sentiment and lead to a positive reassessment of the stock.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Zoom can sustain its growth trajectory in a competitive landscape, making these metrics crucial.

Bull Confirmed If

An EPS of $1.70 or higher would confirm strong profitability and could lead to a positive market reaction.

Bear Confirmed If

An EPS below $1.20 would indicate potential issues in profitability and could lead to a negative market reaction.

Pre-Earnings Positioning

Options Market

Implied Move

±18.51%

Historical Avg

±1.8%

Pricing rich

The options market is pricing in a significant potential move, indicating that investors are anticipating volatility around the earnings report.

Options are pricing ±18.5% while ZM has averaged ±1.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

49.6%

Calls (1.0M)P/C Ratio: 0.31Puts (400K)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$9.8M

119,247 sh

5 insiders

Net

$9.8M

Net selling

Most Active Insiders· 25 open-market trades

Chief Executive OfficerYuan Eric S.
$6.9M
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoom beats expectations, history suggests the stock could see a modest increase, confirming the company's strong performance and growth potential.

In-Line / Cautious

If results are in line with expectations, the stock may remain stable, but cautious commentary could lead to volatility.

Miss

A miss on earnings could lead to a significant drop, as history suggests a negative reaction to disappointing results.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on user growth and retention rates.
2Details on new product offerings or enhancements.
3Management's outlook on competition and market share.
4Insights into customer feedback and satisfaction levels.
5Comments on cost management and profitability strategies.