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1. Company Snapshot

1.a. Company Description

Zoom Video Communications, Inc.provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.


It also provides Zoom Rooms, a software-based conference room system; Zoom Hardware-as-a-Service allows users to access video communication technology from third party equipment; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices.In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom's video-based communications solutions, as well as integrate Zoom's technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution.It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries.


The company was formerly known as Zoom Communications, Inc.and changed its name to Zoom Video Communications, Inc.in May 2012.


The company was incorporated in 2011 and is headquartered in San Jose, California.

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1.b. Last Insights on ZM

Breaking News: Zoom Video Communications Inc reported a significant net cash position and a $4 billion stake in Anthropic as of March 4 2026. The company trades at 12x forward non-GAAP earnings with net cash and investments making up 48% of its market cap. Management forecasts modest 4.2% FY revenue growth but is optimistic about AI monetization in FY 27. The stock stands out in a weak software sector. Analysts recommend a hold on the stock given its current valuation and future growth prospects.

1.c. Company Highlights

2. Zoom's Q4 FY '26 Earnings: AI-Driven Growth Momentum

Zoom's Q4 FY '26 revenue grew 5.3% to $1.25 billion, driven by a 7.1% increase in Enterprise revenue, which accounted for 61% of total revenue. The company's non-GAAP gross margin was 79.8%, and non-GAAP operating margin was 39.3%. Earnings per share (EPS) came in at $1.44, slightly below estimates of $1.48. The company's revenue growth was driven by its expanding portfolio of AI-driven products, including Zoom Contact Center (ZCX) and Zoom Virtual Agent (ZVA).

Publication Date: Mar -02

📋 Highlights
  • Revenue Growth:: Q4 FY '26 revenue reached $1.25 billion (5.3% YoY), with Enterprise revenue contributing 61% ($762.5 million) and growing 7.1% YoY.
  • AI Product Momentum:: Zoom Contact Center (ZCX) ARR grew in high double digits, and 7 of the top 10 Q4 deals included paid AI, reflecting strong demand for AI-driven solutions.
  • AI Companion Adoption:: AI Companion 3.0’s monthly active users tripled YoY, while MAUs using AI via the side panel doubled QoQ, signaling rapid user engagement growth.
  • FY '27 Guidance:: Full-year revenue projected at $5.065–5.075 billion (4.1% YoY growth), with non-GAAP operating income expected to reach $2.05–2.06 billion and margins at 40.5% midpoint.

AI-Driven Products Fuel Growth

Zoom's AI-driven products are gaining traction, with ZCX ARR growing in high double digits and 7 of the top 10 deals including paid AI. The company's AI Companion 3.0 has seen significant adoption, with monthly active users more than tripling year-over-year. The custom AI Companion is expected to drive growth in FY '27, with already closed big deals in Q3 and Q4.

Guidance and Outlook

For Q1 FY '27, Zoom expects revenue to be $1.22 billion to $1.225 billion, representing 4.1% year-over-year growth. For FY '27, revenue is expected to be $5.065 billion to $5.075 billion, representing 4.1% year-over-year growth, with non-GAAP operating income of $2.05 billion to $2.06 billion. The company's guidance assumes additional value will be realized through price increases and AI monetization.

Valuation and Growth Prospects

Zoom's current valuation metrics indicate a P/E Ratio of 11.54, P/S Ratio of 4.55, and EV/EBITDA of 11.17. Analysts estimate next year's revenue growth at 4.4%. With a strong track record of innovation and a growing portfolio of AI-driven products, Zoom is well-positioned for long-term growth. As noted by Zoom's CEO, Eric Yuan, the company's product velocity improvements, driven by AI coding tools, have accelerated innovation and sped up product development.

Key Drivers of Growth

The company's Enterprise revenue growth is expected to be the main driver of growth in FY '27, with a focus on the "better together" story, combining products like Phone, Contact Center, and AI. The acquisition of BrightHire is also expected to contribute to growth, with a focus on AI-powered hiring solutions. With a net retention rate of 98% in Q4, Zoom is optimistic about its long-term prospects, driven by progress in AI monetization and product diversification.

3. NewsRoom

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Zoom: 35% Net Cash Plus $4 Billion Stake In Anthropic

Mar -04

Source: seekingalpha.com

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Zoom Communications, Inc. (ZM) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -03

Source: seekingalpha.com

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111 Capital Grows Stock Position in Zoom Communications, Inc. $ZM

Mar -02

Source: defenseworld.net

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Novo Nordisk, First Solar, And Corebridge Financial Are Among Top 10 Large Cap Losers Last Week (Feb. 23-Feb. 27): Are the Others in Your Portfolio?

Mar -01

Source: feeds.benzinga.com

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Wall Street Roundup: Nvidia Beats And Drops In Edgy Market

Feb -27

Source: seekingalpha.com

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Want Exposure to Anthropic? Then Buy This AI Software Stock.

Feb -27

Source: fool.com

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Zoom Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Feb -26

Source: zacks.com

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Zoom CEO Eric Yuan: Human to human interactions are still essential in the AI era

Feb -26

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Unified Communications and Collaboration Platform

Expected Growth: 4.0%

Zoom's Unified Communications and Collaboration Platform growth is driven by increasing remote work adoption, demand for seamless video conferencing, and integration with popular productivity tools. Additionally, its user-friendly interface, high-quality video, and robust security features contribute to its rapid expansion.

7. Detailed Products

Zoom Meetings

A video conferencing platform that enables users to hold virtual meetings, training sessions, and webinars

Zoom Phone

A cloud phone system that enables users to make and receive phone calls, send texts, and fax documents

Zoom Rooms

A software-based conference room solution that enables users to hold virtual meetings and collaborate

Zoom Webinar

A webinar platform that enables users to host virtual events, conferences, and training sessions

Zoom Chat

A messaging platform that enables users to send messages, files, and images

Zoom API and SDK

A set of APIs and SDKs that enable developers to integrate Zoom's video conferencing capabilities into their applications

Zoom Marketplace

A marketplace that enables developers to build and publish integrations with Zoom

8. Zoom Video Communications, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Zoom's video conferencing services have few substitutes, as they offer a unique combination of high-quality video, ease of use, and reliability. While there are other video conferencing platforms, they are not perfect substitutes, and Zoom's strong brand recognition and customer loyalty reduce the threat of substitutes.

Bargaining Power Of Customers

Zoom's customers have some bargaining power, as they can choose from a range of video conferencing platforms. However, Zoom's strong brand recognition, high-quality service, and competitive pricing reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Zoom's suppliers, such as data center providers and bandwidth suppliers, have limited bargaining power. Zoom's large scale and strong financial position give it significant negotiating power over its suppliers.

Threat Of New Entrants

While there are barriers to entry in the video conferencing market, such as the need for significant investment in infrastructure and technology, new entrants can still pose a threat to Zoom. However, Zoom's strong brand recognition, high-quality service, and large customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The video conferencing market is highly competitive, with several established players and new entrants vying for market share. Zoom faces intense competition from rivals such as Microsoft Teams, Google Meet, and Cisco Webex, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.90%
Debt Cost 3.95%
Equity Weight 99.10%
Equity Cost 3.68%
WACC 3.69%
Leverage 0.91%

11. Quality Control: Zoom Video Communications, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Zoom Video

A-Score: 5.5/10

Value: 3.6

Growth: 8.1

Quality: 8.8

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

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PTC

A-Score: 5.1/10

Value: 2.1

Growth: 8.3

Quality: 8.9

Yield: 0.0

Momentum: 4.0

Volatility: 7.3

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Alarm.com

A-Score: 4.9/10

Value: 5.3

Growth: 8.2

Quality: 6.2

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

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Progress Software

A-Score: 4.2/10

Value: 4.4

Growth: 6.4

Quality: 5.9

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

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Elastic

A-Score: 3.8/10

Value: 3.2

Growth: 8.0

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 4.0

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Alkami Technology

A-Score: 3.5/10

Value: 4.6

Growth: 7.1

Quality: 4.1

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.5$

Current Price

77.5$

Potential

-0.00%

Expected Cash-Flows