Zoom Video Set to Report Q3 Earnings: What's in the Cards?

Zoom Video Communications ZM is slated to release third-quarter fiscal 2026 results on Nov. 24.

Zoom expects third-quarter fiscal 2026 revenues between $1.210 billion and $1.215 billion. The Zacks Consensus Estimate for the top line is currently pegged at $1.21 billion, indicating growth of 3% from the year-ago quarter.

Non-GAAP earnings per share are expected in the range of $1.42-$1.44. The consensus mark for earnings has remained steady at $1.43 per share over the past 30 days, indicating a decline of 3.62% year over year.

ZM’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 8.66%.

Zoom Communications, Inc. Price and EPS Surprise

Zoom Communications, Inc. price-eps-surprise | Zoom Communications, Inc. Quote

What Our Model Unveils

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

ZM has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Let’s see how things have shaped up for this announcement.

Factors to Consider

Zoom Video’s third-quarter fiscal 2026 results are likely to benefit from several strategic developments that positioned the company for enhanced enterprise adoption. The unveiling of AI Companion 3.0 at Zoomtopia in September introduced agentic AI capabilities across Zoom Workplace and Business Services, though monetization benefits were not expected until fiscal 2027. The platform's ability to synthesize internal enterprise knowledge with external insights through unified, context-aware search might have strengthened customer engagement during the evaluation phase.

Zoom Phone surpassing 10 million seats globally in September marked a significant milestone that potentially contributed to Enterprise segment momentum, which historically demonstrated stronger growth rates compared to the Online segment. The strategic go-to-market partnership with Oracle, announced in October, enabled Zoom CX to run on Oracle Cloud Infrastructure and included a 15,000-seat contact center deployment for Oracle's global operations. This partnership is likely to have enhanced Zoom's competitive positioning in the customer experience market.

The October collaboration with NVIDIA integrated Nemotron open technologies into Zoom's federated AI architecture, introducing a 49-billion-parameter large language model optimized for cost efficiency and latency. While this partnership accelerated AI development capabilities, immediate revenue impact remained uncertain given the early-stage nature of enterprise AI adoption cycles.

However, the modest 3% revenue growth guidance reflected ongoing headwinds from macroeconomic pressures affecting enterprise IT budgets and competitive dynamics with bundled platform providers. 

Zoom shares have lost 1.5% in the past six months against the broader Zacks Computer and Technology sector’s growth of 27.1%. The company still faces significant challenges, including intense competition from Microsoft MSFT Teams, RingCentral RNG and Cisco CSCO Webex, which have been aggressively pushing their collaboration tools. 

Given the balance of positive strategic developments against persistent growth challenges, investors may consider holding their positions or waiting for clearer signs of AI monetization and sustained revenue acceleration before increasing exposure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research