Zoom Communications (ZM) Stock Today, November 23, 2025: AI Pivot Faces a Big Earnings Test

Updated: November 23, 2025

Key Takeaways

Zoom Communications (NASDAQ: ZM) closed Friday, November 21, at $78.63, with after‑hours trading nudging the stock to about $79.02, giving the company a market value around $23.5 billion. ^[1]
Shares sit in a multi‑year trading range roughly between $56 and $91, still more than 80% below their 2020 peak, highlighting how much sentiment has cooled since the pandemic boom. ^[2]
For Q2 FY 2026 (ended July 31, 2025), Zoom reported 4.7% revenue growth to $1.22 billion, strong non‑GAAP operating margins above 40%, and raised full‑year guidance, underscoring high profitability despite modest growth. ^[3]
Q3 FY 2026 earnings arrive Monday, November 24, with management guiding revenue to around $1.21 billion (+3% YoY) and non‑GAAP EPS of $1.42–$1.44. Wall Street expects EPS of $1.43, slightly below last year. ^[4]
Zoom is leaning hard into its AI‑first strategy—including AI Companion 3.0, a new 49‑billion‑parameter LLM built with NVIDIA, a major Oracle partnership, and 10+ million seats for Zoom Phone—as it tries to re‑ignite growth beyond video meetings. ^[5]
At the same time, the stock faces headline risk from recently announced securities‑fraud investigations by shareholder law firms and intense competition from Microsoft Teams, Google Meet, and Cisco Webex. ^[6]

Note: This article is for information and analysis only and is not investment advice.

1. Zoom stock today: price and valuation snapshot

As of the close on Friday, November 21, 2025, Zoom Communications (still commonly referred to as Zoom Video Communications) finished the session at $78.63, up 0.27% on the day, and traded around $79 in after‑hours activity. ^[7]

Key current metrics:

Market cap: ≈ $23.5 billion
Trailing 12‑month revenue: about $4.75 billion
Trailing net income: roughly $1.19 billion
Trailing EPS:$3.80
Trailing P/E: about 20.7×
Forward P/E: about 13.5× based on analyst estimates
52‑week range:$64.41 – $92.80
Beta: around 0.8, indicating lower volatility than the broader market. ^[8]

From a longer-term technical lens, analysts note that Zoom’s stock has traded in a wide consolidation band between roughly $56 and $91 since 2022, after collapsing from its pandemic-era highs. One recent analysis estimates the shares remain more than 86% below their 2020 peak, even as indexes like the S&P 500 and Nasdaq 100 hover near record levels. ^[9]

That combination—low‑teens forward P/E, high cash generation, and a still‑muted share price—is a big part of why Zoom continues to draw deep‑value and turnaround‑oriented investors, even as growth investors have largely moved on.

2. Fundamentals: slow growth, strong profitability

Zoom’s most recent reported quarter is Q2 FY 2026, covering the three months ended July 31, 2025. The numbers tell a story of modest growth but very strong margins and cash flow:

Total revenue:$1.217 billion, up 4.7% year over year (4.4% in constant currency)
Enterprise revenue:$730.7 million, up 7.0% YoY
Online (self‑serve) revenue:$486.6 million, up 1.4% YoY ^[10]

Profitability remains a key strength:

GAAP operating margin:26.4%
Non‑GAAP operating margin:41.3%
GAAP EPS:$1.16, up 65.7% YoY
Non‑GAAP EPS:$1.53, up 10% YoY ^[11]

Zoom is also a cash machine:

Free cash flow in Q2: about $508 million
Cash and marketable securities: around $7.8 billion as of July 31, 2025
Share repurchases: about 6 million shares in Q2, 27.4 million shares retired under the current plan to date. ^[12]

For the full fiscal year 2026, Zoom raised guidance and now expects:

Revenue:$4.825–$4.835 billion
Non‑GAAP EPS:$5.81–$5.84
Free cash flow:$1.74–$1.78 billion ^[13]

Against a roughly $23.5 billion market cap, that free‑cash‑flow outlook implies a mid‑single-digit to high‑single‑digit FCF yield, unusually high for a profitable software company.

Zoom’s longer‑term numbers show the same pattern: moderate top‑line expansion, big profit gains. For calendar 2024, revenue grew just over 3% to $4.67 billion, while earnings jumped nearly 60% to about $1.01 billion as the company focused on costs and efficiency. ^[14]

3. From “video” to AI‑first: Zoom 2.0’s strategic pivot

In late 2024, Zoom dropped “Video” from its corporate name and began officially operating as Zoom Communications Inc., signaling a deliberate evolution from a pure video‑meetings company to an AI‑first work platform. ^[15]

CEO Eric Yuan has framed Zoom as an “AI‑first work platform for human connection”, with AI Companion embedded across products like Zoom Workplace, Zoom Team Chat, Zoom Mail and Calendar, and customer‑experience tools like Zoom Contact Center. ^[16]

AI Companion 3.0 and the NVIDIA partnership

The most eye‑catching move this fall has been Zoom’s deep collaboration with NVIDIA:

Zoom and NVIDIA are integrating NVIDIA Nemotron open technologies into Zoom’s federated AI architecture to power AI Companion 3.0. ^[17]
Zoom has built a 49‑billion‑parameter large language model using NVIDIA NeMo tools, designed to work alongside its proprietary small language models (SLMs). The system dynamically routes each task to either a fast, specialized SLM or the larger model for more complex reasoning. ^[18]
The partnership aims to improve latency, cost efficiency, and accuracy for enterprise users and enable interoperability with platforms like Microsoft 365, Microsoft Teams, Google Workspace, Slack, Salesforce, and ServiceNow. ^[19]
Zoom reiterates that it does not use customer audio, video, chat, or other customer content to train its own or third‑party AI models, a crucial promise for regulated industries. ^[20]

This AI stack is at the heart of Zoom’s attempt to reshape its narrative from “pandemic video app” to differentiated AI‑driven collaboration and CX platform.

Zoom Phone: 10 million seats and a second growth pillar

Zoom is also quietly building a second growth engine in telephony:

In October, the company announced that Zoom Phone has surpassed 10 million seats globally, just six years after launch in 2019. ^[21]
Zoom positions Zoom Phone as an AI‑first cloud phone system that replaces legacy PBXs and unifies calling, meetings, messaging, and contact center on one platform.
A customer case study cited 81% cost savings during a key event period after switching to Zoom Phone, underscoring the product’s ROI pitch. ^[22]

Investors will be watching closely to see if Zoom Phone and AI‑enhanced contact‑center offerings can offset slowing growth in classic meetings and online subscriptions.

Oracle partnership and enterprise credibility

On October 13, 2025, Zoom announced a strategic go‑to‑market partnership with Oracle:

Zoom CX can now run on Oracle Cloud Infrastructure (OCI), extending Zoom’s reach into large enterprises.
Oracle itself has adopted Zoom Contact Center to support its global customer service front‑end, with roughly 15,000 agents using the platform and integrated Oracle Service workflows. ^[23]

The Oracle deal reinforces Zoom’s push into customer experience (CX) and large enterprise deployments—areas where budgets are larger but sales cycles are longer and competition is intense.

Third‑party recognition

Zoom continues to gain external validation for its platform strategy:

The company was recognized as a Leader in the 2025 Gartner Magic Quadrant for Unified Communications as a Service (UCaaS) for the sixth year in a row, and is one of only two vendors appearing in both the UCaaS and CCaaS Magic Quadrants. ^[24]

That positioning matters when CIOs and procurement teams shortlist vendors for multi‑year communication and contact‑center contracts.

4. Monday’s earnings: what Wall Street expects

Zoom reports Q3 FY 2026 results after the market close on Monday, November 24, 2025. Management’s own guidance and street expectations are tightly aligned:

Company guidance:
- Revenue: $1.210–$1.215 billion
- Non‑GAAP income from operations: $465–$470 million
- Non‑GAAP diluted EPS: $1.42–$1.44 ^[25]
Consensus expectations (Zacks):
- Revenue: ≈ $1.21 billion, implying about 3% YoY growth
- EPS: $1.43, roughly 3.6% below the year‑ago quarter. ^[26]

Historically, Zoom has tended to beat those expectations: over the last four quarters, the company delivered an average EPS surprise of roughly 8.7% versus Zacks consensus. ^[27]

However, the modest 3% revenue growth embedded in guidance underscores ongoing headwinds:

Macro pressure on IT and collaboration budgets
Competition from bundled suites such as Microsoft 365 and Google Workspace
Maturity of the core online meetings business, where growth has slowed sharply post‑pandemic ^[28]

Key things investors will be watching

AI monetization vs. “just features”
The big strategic question is whether AI Companion, Zoom Phone, and Contact Center are driving incremental revenue or primarily acting as retention tools. Management has signaled that meaningful AI monetization may not show up until fiscal 2027, so any early commentary on attach rates, upsells, or AI‑linked pricing will be scrutinized. ^[29]
Enterprise vs. Online mix
In Q2, enterprise revenue grew 7%, outpacing the low‑single‑digit growth in online subscriptions. Investors will look for continued strength in large customers, especially the 4,274 customers generating over $100,000 in trailing twelve‑month revenue, which grew 8.7% YoY. ^[30]
Margins and buybacks
With non‑GAAP operating margins in the low 40s and substantial buybacks already completed, investors will want to see whether Zoom can maintain high profitability while still funding aggressive AI and product investments, and whether management plans to extend or expand share‑repurchase programs. ^[31]
Updated guidance
Zoom has already raised its full‑year outlook once, in part after a strong Q1 where it lifted revenue and EPS forecasts on robust hybrid‑work and AI demand. ^[32] Any further upgrade—or a more cautious tone—could drive a sharp move in the stock.

5. Sentiment: analysts, institutions, and technicals

Analyst views

According to data aggregated by StockAnalysis, 26 analysts currently rate Zoom on average as a “Buy”, with a 12‑month price target around $92, implying roughly 17% upside from Friday’s close. ^[33]

Other services paint a more mixed picture, with some rating the shares closer to “Hold” despite similar target prices in the low‑ to mid‑$90s. ^[34] At the more bullish end, RBC Capital Markets has reportedly reaffirmed a $100 price target, while several independent research shops describe Zoom as a high‑margin, cash‑rich “forgotten winner” in software. ^[35]

In short, Wall Street is cautiously optimistic: Zoom is profitable, cheap relative to peak valuations, and has interesting AI optionality—but revenue growth needs to accelerate for a full re‑rating.

Institutional ownership and insider activity

Recent filings show continued interest from institutional investors:

Creative Planning increased its stake by over 20% in the second quarter, to more than 51,000 shares, while AXQ Capital initiated a new position. ^[36]
Various reports estimate that roughly two‑thirds to nearly three‑quarters of Zoom’s float is now held by institutions. ^[37]

At the same time, insider Form 4 filings in recent weeks show modest selling by executives and directors, a normal pattern for maturing tech firms but one that investors nonetheless monitor. ^[38]

Technical backdrop

Technically, Zoom remains in a long, sideways consolidation:

Price oscillating between ~$56 and $91 since 2022
Analysts describing this as an “accumulation phase” in Wyckoff terms, where low volatility and horizontal price action can set up a future markup phase—though that kind of pattern can take years to resolve. ^[39]

Whether Monday’s earnings act as a catalyst for a breakout or keep the stock trapped in its range may depend on the strength of guidance and AI‑driven growth signals.

6. Risks and overhangs

Even with strong margins and cash flow, Zoom’s story comes with meaningful risks.

Competitive pressure

Zoom still faces heavyweight rivals:

Microsoft Teams, Google Meet, and Cisco Webex continue to bundle collaboration tools into broader productivity suites, often at aggressive pricing.
Zacks notes that Zoom shares have lagged the broader technology sector over the last six months, even as the company pushes its AI and enterprise offerings. ^[40]

Winning incremental seats in this environment requires clear product differentiation, seamless integrations, and a convincing total‑cost‑of‑ownership story.

Legal investigations

In October, multiple shareholder law firms—including DJS Law Group and The Schall Law Firm—announced investigations into potential securities‑fraud violations at Zoom Communications, inviting investors who suffered losses to contact them. ^[41]

These announcements are pre‑litigation investigations common in U.S. markets; they do not themselves prove any misconduct. However, they can create headline risk, and if they evolve into full class‑action lawsuits, they could:

Add legal expenses
Create distractions for management
Introduce uncertainty about past disclosures

Investors will listen for any comments on these matters during Monday’s earnings call, though companies typically limit discussion of ongoing legal issues.

Macro and AI‑execution risk

Finally, Zoom is trying to transform itself into an AI‑first platform at a time when:

Enterprise IT budgets remain under pressure
AI hype is high, but monetization is still early and uneven
Customers remain cautious about data privacy and model governance

If Zoom’s AI Companion and associated products don’t translate into clear, paid value propositions, the company risks spending heavily on AI while only modestly enhancing revenue.

7. The bottom line for November 23, 2025

Heading into Monday’s Q3 FY 2026 earnings, Zoom stock sits at about $79, well below its pandemic highs but supported by:

High margins and strong free‑cash‑flow generation
A robust balance sheet with billions in cash and an active buyback program ^[42]
An increasingly coherent AI‑first narrative, anchored by AI Companion 3.0, the NVIDIA partnership, Zoom Phone’s 10‑million‑seat milestone, and the Oracle CX alliance ^[43]
External validation from Gartner and a generally positive analyst consensus with mid‑teens upside to average target prices ^[44]

Against that, investors must weigh:

Slow, low‑single‑digit revenue growth
Intense competition from bundled collaboration suites
The uncertainty of AI monetization timing
Legal overhangs from ongoing shareholder investigations

For readers following Zoom Communications stock today, November 23, 2025 is essentially a calm before the storm: the fundamental setup is solid but not spectacular, expectations for growth are modest, and Monday’s results—plus guidance and AI commentary—could determine whether ZM finally breaks out of its long trading range or remains a value‑oriented “show me” story into 2026.