Abstract

Zoom Video Communications will report fiscal first-quarter 2027 results on May 21, 2026 Post Market; this preview outlines current-quarter revenue and EPS expectations, last quarter’s key figures, main product drivers to watch, and how analysts are lining up ahead of the print.

Market Forecast

The market’s latest quarter view points to revenue of 1.22 billion US dollars for fiscal first-quarter 2027, up 4.87% year over year, with adjusted EPS around 1.42, up 8.44% year over year; EBIT is projected at 490.35 million US dollars, implying 9.71% year-over-year growth. Management’s prior outlook framed non-GAAP diluted EPS at 1.40–1.42 and revenue at 1.22–1.23 billion US dollars, consistent with these ranges; no explicit gross margin or net margin targets were provided for the quarter.

Zoom’s core collaboration subscriptions are expected to anchor the quarter with modest top-line growth and stable profitability, backed by ongoing upsell into enterprise accounts and seat expansion within existing customers. The most discussed growth vector remains Customer Experience solutions and Zoom Phone; while management did not break out segment revenue or year-over-year metrics in guidance, external previews anticipate growth for these lines above the consolidated pace.

Last Quarter Review

In the fiscal fourth quarter of 2026, Zoom Video Communications delivered revenue of 1.25 billion US dollars, a gross profit margin of 77.75%, GAAP net profit attributable to shareholders of 674.00 million US dollars with a net profit margin of 54.06%, and adjusted EPS of 1.44, up 2.13% year over year.

A key financial highlight was the sequential improvement in profitability: GAAP net profit increased by roughly 10% quarter over quarter, reflecting disciplined cost execution and operating leverage. On the business side, total revenue increased 5.31% year over year to 1.25 billion US dollars, supported primarily by its subscription-based collaboration suite; a segment-level revenue breakdown was not disclosed in the available dataset.

Current Quarter Outlook

Main business momentum

The core subscription engine is positioned to deliver steady performance in fiscal first-quarter 2027. The current-quarter revenue projection of 1.22 billion US dollars implies mid-single-digit growth, consistent with the company’s focus on deepening enterprise penetration, managing churn, and expanding wallet share in existing customers. Commentary across previews suggests churn continues to ease relative to the post-pandemic normalization phase, a dynamic that generally supports net retention and stabilizes renewal cycles.

Against that backdrop, pricing and bundling strategies remain key levers. The breadth of the platform makes it easier to tie incremental modules to existing deployments, encouraging multi-product adoption and pushing average revenue per account higher over time. As part of this, sales motion has been oriented around selling outcomes across communications, collaboration, and customer experience workflows, which simplifies procurement for large buyers and adds resilience to the top line even when seat growth moderates.

Profitability should remain a supportive factor for the stock in the near term. While there is no explicit gross margin or net margin guidance for the quarter, the prior quarter’s 77.75% gross margin and 54.06% net margin underscore a high-efficiency operating model. The current consensus for adjusted EPS of roughly 1.42, up 8.44% year over year, indicates that operating leverage and expense discipline can continue to offset the slower revenue growth rate, provided mix and infrastructure costs remain well managed.

Most promising product vectors

Customer Experience and telephony are repeatedly highlighted by analysts as the structural growth engines. The evolution of Zoom Contact Center into a broader CX portfolio—integrating voice, video, and digital channels—is central to capturing incremental budgets that sit adjacent to collaboration spending. With innovation cycles emphasizing agent productivity, AI-powered assistance, and workflow orchestration, the company is improving attach rates and competing for greenfield deployments where customers want a single platform across internal collaboration and external customer engagement.

Zoom Phone remains a durable growth pillar as enterprises consolidate communications stacks. The substitution of legacy PBX with cloud telephony integrated into meetings, chat, and rooms drives both cost savings and simplicity for IT buyers, which resonates in budget-constrained environments. Importantly, the Phone and CX vectors are aligned with the same enterprise decision makers as the core collaboration suite, allowing cross-sell motions that build from existing relationships and simplify proof-of-value.

AI enablement is the unifying layer that can lift both user experience and monetization across these products. The expansion of AI assistants across the platform, along with agentic capabilities to orchestrate workflows between Zoom and third-party systems, is a differentiator that should enhance customer outcomes and support premium pricing over time. Execution milestones in AI—such as broader availability, deeper feature sets in customer service, and measurable productivity gains—will be critical for sustaining above-company-average growth in CX and Phone.

Key stock price drivers this quarter

Guidance quality versus consensus sits at the top of the list. The current-quarter revenue expectation of 1.22 billion US dollars already reflects mid-single-digit growth; investors will look for either a constructive full-year narrative or signs that non-GAAP EPS can outpace revenue through operating efficiency. Any change in tone on renewal rates, deal sizes, or cross-sell traction into CX and Phone could move the shares immediately after the release.

Leadership updates and product stewardship are also in focus. The appointment of a new chief product officer with deep collaboration pedigree has implications for the product roadmap, especially as the company sharpens its AI and workflow capabilities. Investors will parse commentary for how product leadership is aligning engineering and go-to-market to accelerate adoption in enterprise accounts and to translate new features into durable revenue streams.

Capital allocation remains an incremental lever for shareholder returns and sentiment. The stock has responded at times to external calls for enhanced buybacks, and the company’s profitability profile provides flexibility. While no commitment is implied by market commentary alone, clarity on the cadence and scale of repurchases—or on reinvestment priorities in AI, data, and customer experience—may influence near-term valuation. Ultimately, the interplay between organic growth signals, margin durability, and capital returns is likely to determine whether the post-earnings reaction skews positive.

Analyst Opinions

Bullish opinions dominate in the year-to-date period through May 14, 2026, with multiple well-followed firms endorsing the stock against a backdrop of modest top-line growth and improving product breadth. Among the voices, Needham reiterated a Buy rating with a 100.00 US dollars price target, citing easing churn, ongoing expansion in the Customer Experience portfolio, and the traction of Zoom Phone as core drivers that can compound over multiple quarters. RBC Capital reaffirmed a Buy rating and set a 110.00 US dollars price target, emphasizing the platform’s ability to translate cross-product adoption into sustained profitability and to monetize AI-enhanced features within enterprise accounts. A separate market update spotlighted a strong buy stance from a research outfit that paired its view with calls for an expanded buyback, which contributed to positive trading sessions in late April and early May.

The majority-bullish cohort frames the near-term setup as a balance of steady revenue growth and an earnings algorithm that remains favorable. Analysts in this camp generally see the current-quarter revenue guide of 1.22–1.23 billion US dollars as attainable, with the consensus midpoint implying 4.87% year-over-year growth and adjusted EPS near the top end of management’s range. They argue that the enterprise footprint is stable enough to support sequentially improving profitability, and they view the combination of CX and Phone as the most credible path to accelerate growth in the medium term. In their analysis, AI expansion across collaboration and customer service workflows enhances the platform’s decision-maker value proposition and may support better-than-expected pricing power or seat expansion as deployments mature.

The bullish majority also highlights the resilience of the margin structure. The prior quarter’s 77.75% gross margin and 54.06% net margin provide confidence that the company can hold or improve operating efficiency even without a dramatic acceleration in top-line growth. This perspective underpins above-market EPS trajectories in several models, which assume consensus-level revenue and incremental margin progress from disciplined operating spend. To the extent that the company reinforces this narrative with detailed commentary on cost drivers and infrastructure efficiency, bulls believe the shares can sustain multiple support despite only mid-single-digit revenue growth.

Finally, the favored route to upside surprise among bullish analysts centers on product velocity and execution in the enterprise channel. They expect the AI and workflow roadmap to deepen differentiation in meetings, messaging, and contact center use cases, driving higher attach rates. They also point to the commercial synergy of unifying internal collaboration and external customer engagement on a single platform, which can reduce the friction of adding telephony and CX to existing deployments. In this framing, any evidence of faster CX and Phone growth than the consolidated revenue guide—or a constructive outlook for fiscal 2027 margins—would validate the majority view and set a positive tone for the remainder of the year.