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Zoom Communications ZM

Zoom Communications scores good on business quality (6.7 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$97.74Oct 10, 2026
Business qualityGood
Next earningsNov 23, 2026, after the close
Insiders, 90 daysQuiet

Why it matters

  1. What Zoom Communications does

    Zoom provides video-first communications software, monetizing businesses and individuals through subscription-based cloud meetings and enterprise phone systems.

  2. What it does best

    Zoom dominates video collaboration through massive scale and brand ubiquity, converting heavy user habit into a gross margin of 77.3% that outpaces peer ROP's 69.5%.

  3. The main risk

    Growth has stalled to 4.3% as post-pandemic enterprise demand normalizes, leaving the firm dependent on newer contact center products to reignite expansion.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margins sit at 23.7% with a free cash flow margin in the top decile at the 90th sector percentile, ensuring heavy cash conversion as revenue scales.

MoatFair

Enterprise ecosystem lock-in anchors its moat, supported by a top-quartile gross margin rank at the 77th sector percentile.

GrowthSlow

Revenue growth crawls at 4.3% annually, placing it in the bottom quartile of its sector at the 20th percentile as pandemic-era adoption laps out.

Financial healthStrong

Debt-free with $7.8B in cash and zero debt, generating $1.9B in free cash flow, creating an elite fortress balance sheet getting stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on ZM

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is ZM a good business?

Zoom Communications scores good on the Cluenex quality check (6.7 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health strong.

Are insiders buying ZM?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does ZM report earnings?

Nov 23, 2026, after the close.

For members

See ZM today

  • Today's verdict on ZM, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Zoom Communications (ZM)”, https://cluenex.com/stocks/zm/, data as of Oct 10, 2026.