Zoom Communications (ZM) Q3 Earnings and Revenues Surpass Estimates

Core Insights - Zoom Communications reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing an increase from $1.38 per share a year ago, resulting in an earnings surprise of +6.29% [1] - The company generated revenues of $1.23 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 1.40% and up from $1.18 billion year-over-year [2] - Zoom has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +11.68%, with actual earnings of $1.53 per share compared to an expected $1.37 [1] - The current consensus EPS estimate for the upcoming quarter is $1.44, with projected revenues of $1.22 billion, while the estimate for the current fiscal year is $5.83 on $4.83 billion in revenues [7] Stock Performance and Outlook - Zoom shares have declined approximately 3.7% year-to-date, contrasting with the S&P 500's gain of 12.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Zoom belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]