FMP

FMP

Zoom Video Communications (NASDAQ:ZM) Surpasses Earnings and Revenue Estimates

  • Zoom Video Communications (NASDAQ:ZM) reported an EPS of $1.52, beating the estimated $1.43 and marking a significant year-over-year improvement.
  • The company's revenue reached approximately $1.23 billion, slightly above estimates and showcasing a 4.4% year-over-year growth.
  • Zoom's strategic integration of AI tools and strong financial metrics, including a P/E ratio of 14.88 and a current ratio of 4.45, highlight its robust performance and market position.

Zoom Video Communications, listed on NASDAQ:ZM, is a leading player in the video conferencing industry. The company is known for its innovative communication solutions, which have become essential in the era of remote and hybrid work. Zoom competes with other tech giants in the internet software industry, continually enhancing its offerings to meet evolving market demands.

On November 24, 2025, Zoom reported earnings per share (EPS) of $1.52, surpassing the estimated $1.43. This performance marks a significant improvement from the $1.38 EPS recorded in the same quarter last year, as highlighted by Zacks. The earnings surprise for this quarter stands at +6.29%, showcasing Zoom's ability to exceed market expectations consistently.

Zoom's revenue for the quarter was approximately $1.23 billion, slightly above estimates. This represents a 4.4% year-over-year increase from the $1.18 billion reported in the same period last year. The company has consistently surpassed consensus revenue estimates over the past four quarters, reinforcing its strong position in the Zacks Internet - Software industry.

The company's strategic focus on integrating artificial intelligence tools into its products is driving its growth. This move aligns with the increasing demand for AI in hybrid work environments, enhancing Zoom's financial performance. The company has increased its annual revenue and profit forecast, reflecting its adaptability and innovation in meeting modern workplace needs.

Zoom's financial metrics further highlight its robust performance. The company has a price-to-earnings (P/E) ratio of approximately 14.88 and a price-to-sales ratio of about 4.99. With a low debt-to-equity ratio of 0.003 and a strong current ratio of approximately 4.45, Zoom demonstrates minimal reliance on debt and robust liquidity, ensuring financial stability.