Why Zoom Stock Zoomed Today

Core Insights - Zoom Communications experienced a significant increase in stock price, rising 12.7% after reporting earnings that exceeded analyst expectations [1] - The company reported quarterly sales of $1.23 billion, surpassing the forecast of $1.21 billion, and earnings per share of $2.01, which is higher than the expected $1.44 [1][3] - Despite only a 4% year-over-year growth in sales, Zoom achieved a remarkable 204% increase in earnings per share [3] Financial Performance - Free cash flow for the quarter was reported at $629.3 million, reflecting a 30% year-over-year increase [4] - For the full fiscal year 2026, Zoom anticipates sales to exceed $4.85 billion, with pro forma profits projected between $5.95 and $5.97 per share [5] - The company's market capitalization stands at $26.8 billion, resulting in a price-to-free cash flow ratio of 14.3, indicating potential value for investors [6]