Key Points
Zoom Communications Inc. (ZM) surged in today’s session, advancing from a previous close of $78.60 to $86.50. The stock finished up 10.05%, gaining $7.90 on the day as buyers extended a multi-session upswing and confirmed strong upside momentum. Trading remained active with 2,757,206 shares changing hands, a brisk pace compared with the 90-day average volume of 3,076,114, underscoring elevated investor engagement and interest around the name.
Even after the sharp advance, ZM trades approximately 7% below its 52-week high of $92.80, leaving room to retest prior peaks should momentum persist. The price action suggests improving sentiment and confidence in the company’s execution, with buyers stepping in on strength rather than waiting for pullbacks. That shift is often associated with institutional accumulation and tends to support follow-through when fundamentals align with technicals.
From a tactical perspective, the magnitude of today’s move reflects conviction. A double-digit percentage gain on above-typical activity often indicates a repricing event, as market participants digest new information and update forward expectations. With the close near the highs, ZM enters the next session with a constructive setup, and the recent acceleration may keep short-term trend followers engaged.
Overall, the combination of a strong percentage gain, a healthy dollar advance, and firm participation paints a bullish picture. While conditions can change quickly, today’s action positions ZM favorably as it approaches prior resistance levels, with price and volume working together to confirm a constructive near-term trajectory.
Why Zoom Communications Inc. Price is Moving Higher
Today’s rally in Zoom Communications Inc. to $86.50 reflects a confluence of upbeat fundamentals and improving sentiment following the company’s fiscal 2026 Q3 results. Shares climbed sharply after management reported a 206% surge in adjusted EPS to $1.52, topping consensus by $0.08, and revenue of $1.23 billion, up 4.4% year over year and ahead of expectations. The company also raised full-year adjusted EPS guidance to $5.95–$5.97 and lifted revenue guidance to approximately $4.85 billion, signaling confidence in execution, AI platform expansion, and ongoing cost discipline. An additional $1 billion authorization for stock repurchases further highlighted robust cash generation and a commitment to shareholder returns.
Volume trends corroborate the move. Trading reached 2,757,206 shares versus a 90-day average of 3,076,114, showing elevated participation as investors reacted to stronger profitability and an improving outlook. At a market capitalization of $23.52 billion and with EPS (TTM) of $3.80, investors are reassessing valuation as margins expand and operating leverage improves. Management noted operating margins of 25.2%, up from 15.5% a year ago, which supports the case for sustained earnings power as the business scales enterprise offerings and integrates AI across its communications suite.
External validation also aided momentum. Rosenblatt reiterated a Buy rating with a $115 price target, while Citigroup lifted its target to $94, both reinforcing a more optimistic view. With shares still about 7% below the 52-week high of $92.80, the combination of an earnings beat, raised guidance, and an expanded buyback program catalyzed a broad re-rating. The result: bullish momentum, improved confidence in multi-year growth drivers, and a stronger foundation for potential follow-through.
What is the Zoom Communications Inc. Rating - Should I Buy?
Weiss Ratings assigns ZM a C rating. Current recommendation is Hold.
The rating is built on five key indices: the Excellent Growth Index, the Good Efficiency Index, the Excellent Solvency Index, the Fair Total Return Index, and the Fair Volatility Index. The Excellent Growth Index aligns with recently reported operating momentum, while the Good Efficiency Index is consistent with a 24.99% profit margin and a 13.60% ROE. The Excellent Solvency Index supports balance sheet strength, and the Fair Total Return Index and Fair Volatility Index reflect an average risk/return trade-off versus peers.
Supporting metrics help frame this assessment. Revenue growth of 4.71% and an improving profitability profile point to durable operations. A 20.70 P/E ratio places the stock in a reasonable valuation range considering EPS and cash generation, while efficiency metrics indicate management’s ability to convert revenue into earnings. Together, these data elements support a balanced view.
Within its competitive set, sector peers include NVDA (B), AAPL (B), and MSFT (B). These names carry higher ratings based on stronger historical total returns and more favorable risk-adjusted profiles, which sets a higher bar for sustained outperformance.
Overall, ZM’s C rating reflects improving fundamentals and strong solvency, tempered by only fair total returns and volatility characteristics. The Hold recommendation indicates an average risk/reward profile: positive operational progress is evident, yet the stock’s performance and risk metrics are not yet strong enough to lift the overall rating above the market’s better-ranked alternatives.
About Zoom Communications Inc.
Zoom Communications Inc. operates a cloud-based, video-first communications platform that enables frictionless collaboration across devices and locations. The company serves businesses of all sizes, educational institutions, healthcare systems, and public sector organizations with a suite of software-based tools that integrate video, voice, chat, and content sharing. Its core service, Zoom Meetings, provides high-quality video conferencing with reliability, security features, and scalability designed for hybrid work.
Beyond meetings, Zoom offers Zoom Phone, a cloud telephony service that delivers enterprise-grade calling, voicemail, and call routing in a single application. Zoom Rooms equips conference rooms with hardware and software that simplify scheduling, one-touch joining, and multi-camera experiences. For customer engagement and events, Zoom provides Zoom Contact Center for omnichannel support and analytics, as well as Zoom Webinars and Zoom Events for large-scale broadcasts, training sessions, and interactive digital gatherings.
Zoom enhances productivity with Zoom Team Chat for persistent messaging, file sharing, and collaboration, and integrates AI features across its platform to summarize conversations, generate insights, and streamline workflows. The Zoom App Marketplace and developer platform allow partners and customers to extend functionality via integrations with popular productivity, security, and CRM tools. Operating within the Information Technology sector and the Software and Services industry, Zoom’s competitive advantages include a unified architecture, ease of deployment, broad third-party integrations, and a reputation for reliability. This combination positions the company to support global enterprises and distributed teams seeking secure, scalable, and user-friendly communications solutions.
Investor Outlook
Today’s surge underscores strengthening fundamentals and improving sentiment, while the C (Hold) rating reflects a balanced risk/reward profile. With margin expansion, raised guidance, and an authorized buyback, ZM has a supportive backdrop for potential follow-through as execution continues.
See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.