Zoom Communications slips ahead of earnings as expectations rise

Zoom Communications (ZM) is down 3.7% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver is pre-earnings caution as investors position ahead of Zoom’s second-quarter fiscal 2027 report on August 25. The pullback may also reflect concern that expectations have risen after the stock’s recent run, leaving less room for error even if underlying demand remains stable.

Details:

Zoom’s investor relations site lists its second-quarter fiscal 2027 earnings webinar for August 25, putting the stock in a typical wait-and-see window before results.

One fresh analyst note kept a Neutral rating and pointed to a higher performance bar for the shares after recent multiple expansion, even while describing demand as stable.

In its most recent quarterly release, Zoom said first-quarter fiscal 2027 revenue rose 5.5% year over year, with enterprise revenue up 7.2% and enterprise net dollar expansion improving to 99%.

That same company release guided second-quarter fiscal 2027 revenue to about $1.265 billion to $1.270 billion, which suggests the market may be focusing less on stability and more on whether growth and AI monetization can accelerate further.

Sources:

Zoom Communications Investor Relations, SEC, Investing.com

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$ZM Insider Trading Activity

$ZM insiders have traded $ZM stock on the open market 95 times in the past 6 months. Of those trades, 0 have been purchases and 95 have been sales.

Here’s a breakdown of recent trading of $ZM stock by insiders over the last 6 months:

ERIC S. YUAN (Chief Executive Officer) has made 0 purchases and 40 sales selling 215,620 shares for an estimated $19,886,759.
SANTIAGO SUBOTOVSKY has made 0 purchases and 40 sales selling 31,245 shares for an estimated $3,083,217.
VELCHAMY SANKARLINGAM (Pres. of Engineering & Product) has made 0 purchases and 5 sales selling 17,879 shares for an estimated $1,558,921.
MICHELLE CHANG (Chief Financial Officer) has made 0 purchases and 7 sales selling 17,305 shares for an estimated $1,491,832.
APARNA BAWA (Chief Operating Officer) has made 0 purchases and 2 sales selling 12,886 shares for an estimated $1,129,109.
HERBERT RAYMOND MCMASTER sold 5 shares for an estimated $444

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

$ZM Hedge Fund Activity

We have seen 462 institutional investors add shares of $ZM stock to their portfolio, and 460 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM added 31,632,917 shares (+8620.6%) to their portfolio in Q2 2026, for an estimated $2,730,237,066
JPMORGAN CHASE & CO added 8,561,233 shares (+inf%) to their portfolio in Q2 2026, for an estimated $738,920,020
CITADEL ADVISORS LLC removed 3,573,545 shares (-84.5%) from their portfolio in Q2 2026, for an estimated $308,432,668
D. E. SHAW & CO., INC. added 2,479,483 shares (+963.6%) to their portfolio in Q2 2026, for an estimated $214,004,177
NORGES BANK added 2,062,484 shares (+34.9%) to their portfolio in Q2 2026, for an estimated $178,012,994
QUBE RESEARCH & TECHNOLOGIES LTD added 1,921,805 shares (+321.1%) to their portfolio in Q2 2026, for an estimated $165,870,989
ROBECO INSTITUTIONAL ASSET MANAGEMENT B.V. removed 1,912,180 shares (-70.5%) from their portfolio in Q2 2026, for an estimated $165,040,255

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$ZM Price Targets

Multiple analysts have issued price targets for $ZM recently. We have seen 16 analysts offer price targets for $ZM in the last 6 months, with a median target of $119.0.

Here are some recent targets:

Joshua Reilly from Needham set a target price of $130.0 on 07/02/2026
Rishi Jaluria from RBC Capital set a target price of $130.0 on 06/30/2026
Stephen Bersey from HSBC set a target price of $133.0 on 06/02/2026
Tyler Radke from Citigroup set a target price of $126.0 on 05/26/2026
Samad Samana from Jefferies set a target price of $118.0 on 05/22/2026
Ryan Macwilliams from Wells Fargo set a target price of $105.0 on 05/22/2026
Meta Marshall from Morgan Stanley set a target price of $105.0 on 05/22/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.