Recent News
On February 25, 2026 the company reported its fourth-quarter fiscal 2026 results and highlighted enterprise deal wins and investor-day commentary about contact-center and AI momentum. On February 4, 2026 multiple outlets covered Zoom’s rollout of AI-driven enhancements for Zoom Spaces and Workspace Reservation designed to automate office workflows and extend Zoom’s AI Companion capabilities. In January–February 2026 filings and court notices, the previously announced $150 million securities-class settlement remained active with deadlines and claims administration updates.
Technical Analysis
Directional indicators show a strong directional structure: ADX at 30.53 indicates a strong trend is in place. DI− sits at 34.32 and shows an increasing trajectory, signaling persistent downside pressure; DI+ has registered a dip-and-reversal at 15.20, indicating a recent bullish renewal attempt within that stronger trend environment.
MACD reads −3.14 with a MACD signal at −2.05 and a decreasing MACD trend. The negative, declining MACD denotes prevailing bearish momentum and the MACD remains below its signal line, so momentum stays skewed to the downside until MACD turns up or crosses above the signal line.
MRO stands at 3.89 with a dip-and-reversal pattern. The positive MRO implies price sits above the model target and therefore carries measurable pullback potential; the recent dip-and-reverse suggests the latest corrective phase may contain short-lived upside before mean reversion pressure resumes.
RSI at 46.42, trending down, shows momentum weakening from neutral territory rather than an oversold condition; that deterioration aligns with MACD’s bearish bias and reinforces the near-term tilt toward lower prices unless momentum stabilizes above the midline.
Price action sits below several short- and medium-term averages: the 12-day EMA equals $79.62 (decreasing), the 20-day average equals $81.21 and the 50-day average equals $86.27, while the 200-day average sits at $81.97. The close at $77.06 trades nearer the lower Bollinger band ($73.42 for 1× std dev), signaling limited immediate upside until price clears the short-term EMAs and moving averages.
Volume at ~3.37M compares below the 10-day average of ~6.62M and close to the 200-day average, indicating muted participation on recent moves; that lower short-term volume suggests any directional breakout requires a pickup in trade activity to confirm conviction.
Fundamental Analysis
Revenue growth shows material acceleration: year-over-year revenue growth registers +149.11% and quarter-over-quarter growth equals +34.65%. Total revenue reads $1,246,992,000. Gross margin stands at 76.29% with a slight QoQ contraction of −2.07% but a YoY uptick of +0.73 percentage points, keeping gross profit robust at $951,293,000.
Operating metrics reflect scaled profitability: EBIT equals $249,892,000 and EBIT margin equals 20.04%, which sits above the industry peer mean of 15.17% and slightly above the industry peer median of 19.24%, indicating operating leverage relative to many peers. QoQ, EBIT margin contracted −20.60%, though YoY EBIT margin improved by +5.44 percentage points.
Earnings per share came in at $1.44 versus an estimate of $1.49, an EPS shortfall of −$0.05 or −3.36% versus consensus. Forward EPS equals $1.53 with a forward P/E of 56.27 and a reported trailing P/E of 61.01; those multiples embed elevated growth expectations relative to current free-cash-flow yield of 1.30%.
Balance-sheet strength remains a differentiator: cash and short-term investments total $7,816,908,000 and the cash ratio equals 3.91. Total debt equals $58,475,000, yielding debt-to-assets of 0.49%, well below the industry peer mean of 14.17%, and debt-to-equity near 0.59%. Operating cash flow reached $354,521,000 and free cash flow measured $338,445,000, though free cash flow yield fell QoQ by −48.52%.
Return metrics show improving efficiency: return on assets equals 5.77% and return on equity equals 6.87%, both above the industry peer means. WMDST values the stock as under-valued based on the firm’s cash generation, margin profile, low leverage, and the near-term revenue acceleration driven by product and AI contract momentum.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-01-31 |
| REPORT DATE: | 2026-02-25 |
| NEXT REPORT DATE: | 2026-05-27 |
| CASH FLOW | Begin Period Cash Flow | $ 1.2 B |
| Operating Cash Flow | $ 354.5 M | |
| Capital Expenditures | $ -16.08 M | |
| Change In Working Capital | $ -224.11 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 56.2 M | |
| End Period Cash Flow | $ 1.3 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.2 B | |
| Forward Revenue | $ 209.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 295.7 M | |
| Depreciation | $ 33.0 M | |
| Depreciation and Amortization | $ 33.0 M | |
| Research and Development | $ 222.9 M | |
| Total Operating Expenses | $ 997.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 951.3 M | |
| EBITDA | $ 282.9 M | |
| EBIT | $ 249.9 M | |
| Operating Income | $ 249.9 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ 863.6 M | |
| Tax Provision | $ 189.6 M | |
| Tax Rate | 21.95 % | |
| Net Income | $ 674.1 M | |
| Net Income From Continuing Operations | $ 674.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.49 | |
| EPS Actual | $ 1.44 | |
| EPS Difference | $ -0.05 | |
| EPS Surprise | -3.356 % | |
| Forward EPS | $ 1.53 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 12.0 B | |
| Intangible Assets | $ 471.6 M | |
| Net Tangible Assets | $ 9.3 B | |
| Total Current Assets | $ 8.7 B | |
| Cash and Short-Term Investments | $ 7.8 B | |
| Cash | $ 1.3 B | |
| Net Receivables | $ 497.3 M | |
| Inventory | — | |
| Long-Term Investments | $ 11.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 6.3 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 2.0 B | |
| Net Debt | — | |
| Total Debt | $ 58.5 M | |
| Total Liabilities | $ 2.2 B | |
| EQUITY | ||
| Total Equity | $ 9.8 B | |
| Retained Earnings | $ 5.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 33.19 | |
| Shares Outstanding | 295.527 M | |
| Revenue Per-Share | $ 4.22 | |
| VALUATION | Market Capitalization | $ 26.0 B |
| Enterprise Value | $ 18.2 B | |
| Enterprise Multiple | 64.356 | |
| Enterprise Multiple QoQ | 34.874 % | |
| Enterprise Multiple YoY | -3.897 % | |
| Enterprise Multiple IPRWA | high: 1195.516 mean: 286.236 median: 140.144 low: 65.378 ZM: 64.356 |
|
| EV/R | 14.598 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.219 | |
| Asset To Liability | 5.557 | |
| Debt To Capital | 0.006 | |
| Debt To Assets | 0.005 | |
| Debt To Assets QoQ | 15.059 % | |
| Debt To Assets YoY | -16.553 % | |
| Debt To Assets IPRWA | high: 0.471 median: 0.153 mean: 0.142 low: 0.015 ZM: 0.005 |
|
| Debt To Equity | 0.006 | |
| Debt To Equity QoQ | 14.176 % | |
| Debt To Equity YoY | -17.337 % | |
| Debt To Equity IPRWA | high: 0.898 mean: 0.319 median: 0.29 low: 0.04 ZM: 0.006 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.647 | |
| Price To Book QoQ | 1.359 % | |
| Price To Book YoY | -5.832 % | |
| Price To Book IPRWA | high: 25.147 median: 13.729 mean: 10.806 ZM: 2.647 low: -15.249 |
|
| Price To Earnings (P/E) | 61.006 | |
| Price To Earnings QoQ | 50.18 % | |
| Price To Earnings YoY | 4.715 % | |
| Price To Earnings IPRWA | high: 994.453 mean: 170.681 median: 92.516 ZM: 61.006 low: -13.79 |
|
| PE/G Ratio | -11.592 | |
| Price To Sales (P/S) | 20.82 | |
| Price To Sales QoQ | 5.577 % | |
| Price To Sales YoY | -1.84 % | |
| Price To Sales IPRWA | high: 85.311 mean: 40.786 median: 36.69 ZM: 20.82 low: 16.115 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 56.268 | |
| Forward PE/G | -10.691 | |
| Forward P/S | 124.43 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -13.976 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.107 | |
| Asset Turnover Ratio QoQ | -2.59 % | |
| Asset Turnover Ratio YoY | -2.287 % | |
| Asset Turnover Ratio IPRWA | high: 0.219 mean: 0.111 median: 0.108 ZM: 0.107 low: 0.05 |
|
| Receivables Turnover | 2.726 | |
| Receivables Turnover Ratio QoQ | 3.552 % | |
| Receivables Turnover Ratio YoY | 9.705 % | |
| Receivables Turnover Ratio IPRWA | ZM: 2.726 high: 2.423 median: 1.455 mean: 1.353 low: 1.099 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 33.479 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 30.271 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -11.005 % | |
| Cash Conversion Cycle Days IPRWA | high: 93.892 median: 47.892 mean: 38.827 ZM: 30.271 low: -170.532 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.187 | |
| CapEx To Revenue | -0.013 | |
| CapEx To Depreciation | -0.488 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 9.8 B | |
| Net Invested Capital | $ 9.8 B | |
| Invested Capital | $ 9.8 B | |
| Net Tangible Assets | $ 9.3 B | |
| Net Working Capital | $ 6.7 B | |
| LIQUIDITY | ||
| Cash Ratio | 3.91 | |
| Current Ratio | 4.331 | |
| Current Ratio QoQ | -2.63 % | |
| Current Ratio YoY | -4.995 % | |
| Current Ratio IPRWA | ZM: 4.331 high: 1.901 mean: 1.172 median: 1.045 low: 0.76 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.207 | |
| Cost Of Debt | 48.882 % | |
| Interest Coverage Ratio | 7.462 | |
| Interest Coverage Ratio QoQ | -19.497 % | |
| Interest Coverage Ratio YoY | 11.032 % | |
| Interest Coverage Ratio IPRWA | high: 265.5 mean: 37.328 median: 15.393 ZM: 7.462 low: -8.765 |
|
| Operating Cash Flow Ratio | 0.311 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 3.208 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.001 % | |
| Revenue Growth | 1.395 % | |
| Revenue Growth QoQ | 34.653 % | |
| Revenue Growth YoY | 149.107 % | |
| Revenue Growth IPRWA | high: 9.182 % mean: 6.735 % median: 5.763 % low: 3.507 % ZM: 1.395 % |
|
| Earnings Growth | -5.263 % | |
| Earnings Growth QoQ | -116.776 % | |
| Earnings Growth YoY | -342.088 % | |
| Earnings Growth IPRWA | high: 36.585 % median: 16.667 % mean: 15.486 % ZM: -5.263 % low: -114.583 % |
|
| MARGINS | ||
| Gross Margin | 76.287 % | |
| Gross Margin QoQ | -2.073 % | |
| Gross Margin YoY | 0.732 % | |
| Gross Margin IPRWA | high: 91.518 % mean: 77.319 % ZM: 76.287 % median: 76.122 % low: 73.539 % |
|
| EBIT Margin | 20.04 % | |
| EBIT Margin QoQ | -20.602 % | |
| EBIT Margin YoY | 5.44 % | |
| EBIT Margin IPRWA | high: 27.133 % ZM: 20.04 % median: 19.239 % mean: 15.167 % low: -2.343 % |
|
| Return On Sales (ROS) | 20.04 % | |
| Return On Sales QoQ | -20.602 % | |
| Return On Sales YoY | 5.44 % | |
| Return On Sales IPRWA | high: 27.133 % ZM: 20.04 % median: 15.305 % mean: 13.481 % low: -6.347 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 338.4 M | |
| Free Cash Flow Yield | 1.304 % | |
| Free Cash Flow Yield QoQ | -48.52 % | |
| Free Cash Flow Yield YoY | -21.304 % | |
| Free Cash Flow Yield IPRWA | high: 2.578 % ZM: 1.304 % mean: 1.283 % median: 0.93 % low: 0.298 % |
|
| Free Cash Growth | -44.907 % | |
| Free Cash Growth QoQ | -313.294 % | |
| Free Cash Growth YoY | 395.28 % | |
| Free Cash Growth IPRWA | high: 144.511 % mean: 49.602 % median: 35.744 % ZM: -44.907 % low: -77.238 % |
|
| Free Cash To Net Income | 0.502 | |
| Cash Flow Margin | 49.785 % | |
| Cash Flow To Earnings | 0.921 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 5.773 % | |
| Return On Assets QoQ | 5.655 % | |
| Return On Assets YoY | 70.044 % | |
| Return On Assets IPRWA | ZM: 5.773 % high: 3.121 % median: 1.781 % mean: 1.341 % low: -0.518 % |
|
| Return On Capital Employed (ROCE) | 2.509 % | |
| Return On Equity (ROE) | 0.069 | |
| Return On Equity QoQ | 4.152 % | |
| Return On Equity YoY | 66.942 % | |
| Return On Equity IPRWA | high: 0.104 ZM: 0.069 median: 0.033 mean: 0.031 low: -0.016 |
|
| DuPont ROE | 7.06 % | |
| Return On Invested Capital (ROIC) | 1.989 % | |
| Return On Invested Capital QoQ | -22.817 % | |
| Return On Invested Capital YoY | -183.607 % | |
| Return On Invested Capital IPRWA | high: 11.709 % mean: 2.623 % median: 2.165 % ZM: 1.989 % low: -0.294 % |
|