Recent News
On September 10, 2025, Zoom received its first inclusion in the Gartner Magic Quadrant for Contact Center as a Service, highlighting the company’s progress in contact-center capabilities. On September 17, 2025, the company unveiled AI Companion 3.0 and a suite of Zoom Workplace enhancements at Zoomtopia; those product updates emphasize expanded AI note-taking, custom AI agents, live translation, and agentic features. The company also announced a legal-name change to Zoom Communications Inc. and a $10 million Zoom Cares commitment to expand AI education and community grants during the same event.
Technical Analysis
ADX / DI+ / DI-: ADX registers at 20.78, signaling an emerging trend strength; DI+ sits at 28.44 and shows an increasing trend while DI- measures 17.58 and shows a decreasing trend, a configuration that favors a bullish directional bias for the near term and aligns with upward momentum that supports the company’s operational narrative.
MACD: MACD equals 0.99 with the MACD signal at 0.53 and the MACD trend increasing; the MACD line sits above the signal line, a bullish momentum confirmation that supports continued price strength relative to the valuation context.
MRO: MRO reads 20.86 with a dip & reversal pattern; the positive MRO implies price sits above the modeled target and, combined with the dip-and-reversal, indicates recent momentum exhaustion followed by a rebound that may cap immediate upside while still preserving a constructive bias.
RSI: RSI at 54.23 with an increasing trend reflects neutral-to-mild bullish momentum rather than overbought conditions, which allows momentum-based upside to persist without signaling immediate exhaustion.
Price Versus Moving Averages & Bands: The last close at $86.28 sits above the 20-day average ($83.23), 50-day average ($82.82), and 200-day average ($78.68); the 12-day EMA at $84.14 shows an increasing trend. Bollinger upper and lower bands near $85.89 and $80.57 provide a technical corridor, while the Ichimoku components cluster between $78.41 and $83.53, collectively indicating price strength above near-term technical support and validating the momentum signals described above.
Volume & Volatility: Ten-day average volume of 2.62M versus current volume of 2.99M, and subdued 42-day volatility (0.02), indicate incrementally higher participation without significant intraday swings—conditions that favor trend continuation while moderating short-term directional risk.
Fundamental Analysis
Profitability: Operating (EBIT) stands at $321,735,000 and EBIT margin equals 26.432%. That margin sits above the industry peer mean of 20.394% and slightly above the industry peer median of 25.525%, reflecting stronger-than-average operating efficiency versus peers. Operating margin improved QoQ by 28.523% and improved YoY by 51.838%, reinforcing recent margin expansion.
Earnings: Reported EPS equals $1.16 versus an estimate of $0.72, producing an EPS surprise of $0.44, equivalent to a 61.11% upside to expectations; that magnitude supports the earnings-strength narrative embedded in the operating metrics.
Revenue & Growth: Total revenue measures $1,217,227,000. Reported revenue growth equals 3.619% while revenue growth year-over-year registers 94.048%; quarter-over-quarter revenue shows a negative change of -5.54648 (expressed as a percentage change). Use of the YoY and QoQ figures suggests sequential softness in the most recent quarter even as annual comparisons register materially higher.
Cash Flow & Liquidity: Free cash flow totals $507,474,000 and free cash flow yield equals 2.218%, which sits above the industry peer mean (0.348%) and above the industry peer high (2.055%), indicating comparatively strong cash generation relative to peers. Cash and short-term investments total $7,778,649,000 and the current ratio measures 4.448, signaling very strong near-term liquidity.
Leverage & Coverage: Total debt remains minimal at $54,258,000, debt-to-assets equals 0.491%, and debt-to-EBITDA sits at 0.153 — very low leverage that corresponds with an interest coverage ratio of 9.61, indicating ample capacity to service obligations.
Returns: Return on assets equals 3.261% (above the industry peer mean of 1.527%) while return on equity equals 4.007% (below the industry peer mean of 6.369%), reflecting efficient asset utilization but comparatively lower equity returns versus typical peers.
Valuation Context: Price multiples sit elevated: trailing PE at 49.06, forward PE 58.16, price-to-sales 18.79 and price-to-book 2.56. Enterprise multiple measures 42.81 while enterprise value equals $15,150,812,823 against a market cap of $22,875,203,823. Despite elevated multiples, WMDST values the stock as under-valued, driven by superior free cash flow yield relative to peer metrics, above-mean EBIT margin, low leverage and a large cash balance that support the company’s AI-first monetization pathway.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-08-21 |
| NEXT REPORT DATE: | 2025-11-19 |
| CASH FLOW | Begin Period Cash Flow | $ 1.2 B |
| Operating Cash Flow | $ 515.9 M | |
| Capital Expenditures | $ -8.47 M | |
| Change In Working Capital | $ -60.50 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -38.17 M | |
| End Period Cash Flow | $ 1.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.2 B | |
| Forward Revenue | $ 336.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 273.2 M | |
| Depreciation | $ 32.2 M | |
| Depreciation and Amortization | $ 32.2 M | |
| Research and Development | $ 206.4 M | |
| Total Operating Expenses | $ 895.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 944.1 M | |
| EBITDA | $ 353.9 M | |
| EBIT | $ 321.7 M | |
| Operating Income | $ 321.7 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ 448.2 M | |
| Tax Provision | $ 89.6 M | |
| Tax Rate | 20.0 % | |
| Net Income | $ 358.6 M | |
| Net Income From Continuing Operations | $ 358.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.72 | |
| EPS Actual | $ 1.16 | |
| EPS Difference | $ 0.44 | |
| EPS Surprise | 61.111 % | |
| Forward EPS | $ 1.32 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 11.0 B | |
| Intangible Assets | $ 359.9 M | |
| Net Tangible Assets | $ 8.6 B | |
| Total Current Assets | $ 8.7 B | |
| Cash and Short-Term Investments | $ 7.8 B | |
| Cash | $ 1.2 B | |
| Net Receivables | $ 516.8 M | |
| Inventory | — | |
| Long-Term Investments | $ 13.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 11.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.9 B | |
| Net Debt | — | |
| Total Debt | $ 54.3 M | |
| Total Liabilities | $ 2.1 B | |
| EQUITY | ||
| Total Equity | $ 9.0 B | |
| Retained Earnings | $ 4.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 29.82 | |
| Shares Outstanding | 300.120 M | |
| Revenue Per-Share | $ 4.06 | |
| VALUATION | Market Capitalization | $ 22.9 B |
| Enterprise Value | $ 15.2 B | |
| Enterprise Multiple | 42.811 | |
| Enterprise Multiple QoQ | -25.226 % | |
| Enterprise Multiple YoY | -7.667 % | |
| Enterprise Multiple IPRWA | high: 913.757 median: 119.829 mean: 103.303 ZM: 42.811 low: -500.562 |
|
| EV/R | 12.447 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.234 | |
| Asset To Liability | 5.274 | |
| Debt To Capital | 0.006 | |
| Debt To Assets | 0.005 | |
| Debt To Assets QoQ | -12.478 % | |
| Debt To Assets YoY | 84.586 % | |
| Debt To Assets IPRWA | high: 0.701 mean: 0.329 median: 0.28 low: 0.005 ZM: 0.005 |
|
| Debt To Equity | 0.006 | |
| Debt To Equity QoQ | -12.301 % | |
| Debt To Equity YoY | 84.756 % | |
| Debt To Equity IPRWA | high: 2.26 mean: 0.417 median: 0.216 ZM: 0.006 low: -0.716 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.556 | |
| Price To Book QoQ | -3.528 % | |
| Price To Book YoY | 19.567 % | |
| Price To Book IPRWA | high: 29.644 median: 24.318 mean: 18.62 ZM: 2.556 low: -17.466 |
|
| Price To Earnings (P/E) | 49.061 | |
| Price To Earnings QoQ | -9.757 % | |
| Price To Earnings YoY | 15.256 % | |
| Price To Earnings IPRWA | high: 693.657 mean: 183.355 median: 153.023 ZM: 49.061 low: -214.856 |
|
| PE/G Ratio | 7.016 | |
| Price To Sales (P/S) | 18.793 | |
| Price To Sales QoQ | -6.399 % | |
| Price To Sales YoY | 19.883 % | |
| Price To Sales IPRWA | high: 95.267 mean: 43.613 median: 42.816 ZM: 18.793 low: 5.82 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 58.159 | |
| Forward PE/G | 8.317 | |
| Forward P/S | 67.915 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 9.167 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.111 | |
| Asset Turnover Ratio QoQ | 3.362 % | |
| Asset Turnover Ratio YoY | -0.966 % | |
| Asset Turnover Ratio IPRWA | high: 0.231 mean: 0.115 ZM: 0.111 median: 0.104 low: 0.048 |
|
| Receivables Turnover | 2.449 | |
| Receivables Turnover Ratio QoQ | 1.37 % | |
| Receivables Turnover Ratio YoY | 11.206 % | |
| Receivables Turnover Ratio IPRWA | high: 3.437 ZM: 2.449 mean: 1.87 median: 1.716 low: 0.56 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 37.259 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.181 | |
| CapEx To Revenue | -0.007 | |
| CapEx To Depreciation | -0.263 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 9.0 B | |
| Net Invested Capital | $ 9.0 B | |
| Invested Capital | $ 9.0 B | |
| Net Tangible Assets | $ 8.6 B | |
| Net Working Capital | $ 6.7 B | |
| LIQUIDITY | ||
| Cash Ratio | 3.994 | |
| Current Ratio | 4.448 | |
| Current Ratio QoQ | -2.623 % | |
| Current Ratio YoY | -2.441 % | |
| Current Ratio IPRWA | ZM: 4.448 high: 2.767 mean: 1.054 median: 0.942 low: 0.436 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.153 | |
| Cost Of Debt | 46.296 % | |
| Interest Coverage Ratio | 9.607 | |
| Interest Coverage Ratio QoQ | 33.173 % | |
| Interest Coverage Ratio YoY | 58.984 % | |
| Interest Coverage Ratio IPRWA | high: 93.343 ZM: 9.607 mean: 9.149 median: 4.713 low: -28.274 |
|
| Operating Cash Flow Ratio | 0.179 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 4.232 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.842 % | |
| Revenue Growth | 3.619 % | |
| Revenue Growth QoQ | -554.648 % | |
| Revenue Growth YoY | 94.048 % | |
| Revenue Growth IPRWA | high: 11.139 % median: 4.141 % ZM: 3.619 % mean: 1.387 % low: -6.143 % |
|
| Earnings Growth | 6.993 % | |
| Earnings Growth QoQ | 393.159 % | |
| Earnings Growth YoY | 136.011 % | |
| Earnings Growth IPRWA | high: 114.286 % ZM: 6.993 % median: 4.941 % mean: 3.172 % low: -13.529 % |
|
| MARGINS | ||
| Gross Margin | 77.558 % | |
| Gross Margin QoQ | 1.649 % | |
| Gross Margin YoY | 2.757 % | |
| Gross Margin IPRWA | high: 90.981 % ZM: 77.558 % mean: 74.17 % median: 73.229 % low: 59.218 % |
|
| EBIT Margin | 26.432 % | |
| EBIT Margin QoQ | 28.523 % | |
| EBIT Margin YoY | 51.838 % | |
| EBIT Margin IPRWA | high: 37.642 % ZM: 26.432 % median: 25.525 % mean: 20.394 % low: -41.293 % |
|
| Return On Sales (ROS) | 26.432 % | |
| Return On Sales QoQ | 28.523 % | |
| Return On Sales YoY | 51.838 % | |
| Return On Sales IPRWA | high: 36.289 % ZM: 26.432 % median: 25.525 % mean: 19.565 % low: -44.13 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 507.5 M | |
| Free Cash Flow Yield | 2.218 % | |
| Free Cash Flow Yield QoQ | 12.875 % | |
| Free Cash Flow Yield YoY | 10.734 % | |
| Free Cash Flow Yield IPRWA | ZM: 2.218 % high: 2.055 % mean: 0.348 % median: 0.246 % low: -1.333 % |
|
| Free Cash Growth | 9.523 % | |
| Free Cash Growth QoQ | -15.875 % | |
| Free Cash Growth YoY | -126.518 % | |
| Free Cash Growth IPRWA | high: 259.959 % ZM: 9.523 % mean: -33.613 % median: -87.615 % low: -108.458 % |
|
| Free Cash To Net Income | 1.415 | |
| Cash Flow Margin | 28.64 % | |
| Cash Flow To Earnings | 0.972 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.261 % | |
| Return On Assets QoQ | 40.5 % | |
| Return On Assets YoY | 54.843 % | |
| Return On Assets IPRWA | high: 6.233 % ZM: 3.261 % median: 1.678 % mean: 1.527 % low: -3.645 % |
|
| Return On Capital Employed (ROCE) | 3.537 % | |
| Return On Equity (ROE) | 0.04 | |
| Return On Equity QoQ | 40.105 % | |
| Return On Equity YoY | 55.975 % | |
| Return On Equity IPRWA | high: 0.151 median: 0.115 mean: 0.064 ZM: 0.04 low: -0.192 |
|
| DuPont ROE | 4.017 % | |
| Return On Invested Capital (ROIC) | 2.876 % | |
| Return On Invested Capital QoQ | 31.504 % | |
| Return On Invested Capital YoY | -242.376 % | |
| Return On Invested Capital IPRWA | high: 10.16 % median: 3.218 % mean: 2.969 % ZM: 2.876 % low: -12.344 % |
|