# Zoom Video Communications (ZM.US)

Canonical: https://gigainvestors.com/s/ZM

Analysis as of: 2026-10-16T07:33:22.392Z. Financial observations: FY2017–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $98.51 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 1

- Operating margin variation: 0.79×

Chart: Operating margin; fiscal year observations.

- FY2018: -0.03×

- FY2019: 0.02×

- FY2020: 0.02×

- FY2021: 0.25×

- FY2022: 0.26×

- FY2023: 0.06×

- FY2024: 0.12×

- FY2025: 0.17×

- FY2026: 0.23×

- LTM to Jul 2026: 0.24×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 37.6%

- ROIC, second-lowest year: 16.5%

- Typical minus recent gross margin: -0.4 pp

- Typical gross margin (annual median): 76.6%

- Recent gross margin (lower of latest and 3-year median): 77.0%

- Years with nonpositive capital: 3

- Capital spending / revenue: 3.1%

- ROIC including acquisitions, ten-year median: 64.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 0.0%

- FY2019: 75.5%

- FY2020: 23.8%

- FY2021: 16.5%

- FY2022: >100%

- FY2023: 20.8%

- FY2024: 48.9%

- FY2025: 69.4%

- FY2026: 53.4%

- LTM to Jul 2026: 26.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.01×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.1B

- Net income, five-year total: $5.0B

- Return on incremental invested capital: 127.9%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, change between three-year averages: -7.4 pp

- Working capital / revenue, final three-year average: 13.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.99×

- FY2025: 1.00×

- FY2026: 1.04×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.0% vs 53.4%

- Per-share earnings: -0.00 to 3.21 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: 0.6%

- Per-share value change: $3.21

- Per-share value, starting three-year median: -$0.00

- Per-share value, ending three-year median: $3.21

- Buybacks concentrated in cheaper years (correlation): 0.30

- Average buyback yield: 2.8%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: $5.7B

- ROIC, first three-year median: 0.0%

- ROIC, last three-year median: 53.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$0.00

- FY2018: -$0.05

- FY2019: $0.07

- FY2020: $0.10

- FY2021: $2.26

- FY2022: $4.50

- FY2023: $0.34

- FY2024: $2.07

- FY2025: $3.21

- FY2026: $6.18

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -0.7%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 38.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.05×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.7%

- FY2018: -10.8%

- FY2019: -12.3%

- FY2020: -9.8%

- FY2021: -15.1%

- FY2022: -3.0%

- FY2023: -14.6%

- FY2024: -9.7%

- FY2025: -8.5%

- FY2026: -0.7%

## Holders

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 64% since Oct 2021 · "The company reported second-quarter results and issued third-quarter profit guidance below street estimates." (finance.yahoo.com, Aug 2026) · sales +2.6%

Story as of 2026-10-16T09:59:55.684Z; price observation 2026-10-15.

- 2025-05-21: Zoom (NASDAQ:ZM) Exceeds Q1 Expectations, Quarterly Revenue Guidance Slightly Exceeds Expectations ([finance.yahoo.com](https://finance.yahoo.com/news/zoom-nasdaq-zm-exceeds-q1-201328391.html))

- 2025-08-22: Zoom raises FY26 revenue outlook amid surging AI adoption and robust enterprise growth ([seekingalpha.com](https://seekingalpha.com/news/4488190-zoom-raises-fy26-revenue-outlook-amid-surging-ai-adoption-and-robust-enterprise-growth?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-25: Zoom falls on earnings miss and weak profit guidance ([finance.yahoo.com](https://finance.yahoo.com/news/zoom-falls-earnings-miss-weak-215659185.html))

- 2026-05-23: Zoom's AI Bet Pays Off: Paid Companion Users Explode 184% In Beat-And-Raise Quarter ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/zooms-ai-bet-pays-off-113134399.html))

### Sales · FY2026–2027

sales +2.6%; source https://www.sec.gov/Archives/edgar/data/1585521/000158552126000030/zm-20260131.htm; observed 2026-02-27.

- FY2018: $151M 

- FY2019: $331M 

- FY2020: $623M 

- FY2021: $2.7B 

- FY2022: $4.1B 

- FY2023: $4.4B 

- FY2024: $4.5B 

- FY2025: $4.7B 

- FY2026: $4.9B 

- FY2027: $5.0B 

### Gross margin · FY2027

gross margin 77.3%; source https://www.sec.gov/Archives/edgar/data/1585521/000158552126000030/zm-20260131.htm; observed 2026-02-27.

- FY2018: 79.7% 

- FY2019: 81.5% 

- FY2020: 81.5% 

- FY2021: 69.0% 

- FY2022: 74.3% 

- FY2023: 74.9% 

- FY2024: 76.2% 

- FY2025: 75.8% 

- FY2026: 77.0% 

- FY2027: 77.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 4.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1585521/000158552126000030/zm-20260131.htm (filed 2026-02-27); FY2026: revenue 4868769000; grossProfit 3749733000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 75.8% to 77% during 2024–26; it earns 37.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 76.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2025: grossProfit / revenue = 75.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1585521/000158552126000030/zm-20260131.htm (filed 2026-02-27); FY2026: grossProfit / revenue = 77%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2018,0],[2019,0.7550790845600082],[2020,0.23795193615643545],[2021,0.16494054912347555],[2022,2.4235314223214695],[2023,0.207780188778773],[2024,0.4890807453282714],[2025,0.6935275458686309],[2026,0.5343822145490591],[2027,0.2622415051263975]]; median 0.3756611252273344. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 6.1% of cash earnings; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 17419076.636847433; upkeep 13030923.363152567; cash acquisitions 0; owner earnings 1561076.6368474327. Growth capex plus acquisitions / owner earnings = 11.15837379516803.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 21776000; upkeep 16449000; cash acquisitions 0; owner earnings 25305000. Growth capex plus acquisitions / owner earnings = 0.8605413949812291.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 56958000; upkeep 28857000; cash acquisitions 26486000; owner earnings 672316000. Growth capex plus acquisitions / owner earnings = 0.12411425579638147.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 97420000; upkeep 48188000; cash acquisitions 3501000; owner earnings 1375639000. Growth capex plus acquisitions / owner earnings = 0.0733629971235186.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 32773000; upkeep 82321000; cash acquisitions 120553000; owner earnings 103711000. Growth capex plus acquisitions / owner earnings = 1.478396698517997.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 14147067.18933919; upkeep 112805932.81066081; cash acquisitions 204918000; owner earnings 629107067.1893392. Growth capex plus acquisitions / owner earnings = 0.3482158739180215.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2025: growth capex 11269669.114639461; upkeep 125290330.88536054; cash acquisitions 0; owner earnings 1007579669.1146395. Growth capex plus acquisitions / owner earnings = 0.01118489133920509.

- Source: https://www.sec.gov/Archives/edgar/data/1585521/000158552126000030/zm-20260131.htm (filed 2026-02-27); FY2026: growth capex 0; upkeep 64961000; cash acquisitions 119796000; owner earnings 1968018000. Growth capex plus acquisitions / owner earnings = 0.060871394468953025.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Incremental return on capital 1.2793580712130255, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1585521/000158552126000030/zm-20260131.htm (filed 2026-02-27); FY2026: cash repurchases 1620691000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ZM.US SharesStats.PercentInsiders = 0.22699999999999998 percentage points; cache date 2026-10-16.

### What the price says

The price is 6.2 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Closing price 98.51 USD; reporting-to-trading FX 1; FY2026 annual sales per share 15.841989207901516; price multiple 6.218284756239205. FY2026 cash earnings/share 6.40353237480684. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2019-04: $72.47 per share

- 2019-05: $79.73 per share

- 2019-06: $88.79 per share

- 2019-07: $95.51 per share

- 2019-08: $91.67 per share

- 2019-09: $76.20 per share

- 2019-10: $69.89 per share

- 2019-11: $74.50 per share

- 2019-12: $68.04 per share

- 2020-01: $76.30 per share

- 2020-02: $105.00 per share

- 2020-03: $146.12 per share

- 2020-04: $135.17 per share

- 2020-05: $179.48 per share

- 2020-06: $253.54 per share

- 2020-07: $253.91 per share

- 2020-08: $325.10 per share

- 2020-09: $470.11 per share

- 2020-10: $460.91 per share

- 2020-11: $478.36 per share

- 2020-12: $337.32 per share

- 2021-01: $372.07 per share

- 2021-02: $373.61 per share

- 2021-03: $321.29 per share

- 2021-04: $319.57 per share

- 2021-05: $331.53 per share

- 2021-06: $387.03 per share

- 2021-07: $378.10 per share

- 2021-08: $289.50 per share

- 2021-09: $261.50 per share

- 2021-10: $274.65 per share

- 2021-11: $211.41 per share

- 2021-12: $183.91 per share

- 2022-01: $154.28 per share

- 2022-02: $132.60 per share

- 2022-03: $117.23 per share

- 2022-04: $99.57 per share

- 2022-05: $107.45 per share

- 2022-06: $107.97 per share

- 2022-07: $103.86 per share

- 2022-08: $80.40 per share

- 2022-09: $73.59 per share

- 2022-10: $83.44 per share

- 2022-11: $75.43 per share

- 2022-12: $67.74 per share

- 2023-01: $75.00 per share

- 2023-02: $74.59 per share

- 2023-03: $73.84 per share

- 2023-04: $61.43 per share

- 2023-05: $67.13 per share

- 2023-06: $67.88 per share

- 2023-07: $73.35 per share

- 2023-08: $71.03 per share

- 2023-09: $69.94 per share

- 2023-10: $59.98 per share

- 2023-11: $67.83 per share

- 2023-12: $71.91 per share

- 2024-01: $64.61 per share

- 2024-02: $70.73 per share

- 2024-03: $65.37 per share

- 2024-04: $61.10 per share

- 2024-05: $61.34 per share

- 2024-06: $59.19 per share

- 2024-07: $60.40 per share

- 2024-08: $69.08 per share

- 2024-09: $69.74 per share

- 2024-10: $74.74 per share

- 2024-11: $82.69 per share

- 2024-12: $81.61 per share

- 2025-01: $86.94 per share

- 2025-02: $73.70 per share

- 2025-03: $73.77 per share

- 2025-04: $77.54 per share

- 2025-05: $81.25 per share

- 2025-06: $77.98 per share

- 2025-07: $74.05 per share

- 2025-08: $81.42 per share

- 2025-09: $82.50 per share

- 2025-10: $87.23 per share

- 2025-11: $84.96 per share

- 2025-12: $86.29 per share

- 2026-01: $92.10 per share

- 2026-02: $73.94 per share

- 2026-03: $80.39 per share

- 2026-04: $97.15 per share

- 2026-05: $101.59 per share

- 2026-06: $86.31 per share

- 2026-07: $96.07 per share

- 2026-08: $96.68 per share

- 2026-09: $90.77 per share

- 2026-10: $98.51 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1585521/000158552126000030/zm-20260131.htm); period 2026-01-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Robert Torray](https://gigainvestors.com/T): 24,796 ZM shares; USD 2,140,000 reported position value; 0.32% of portfolio; new; quarter 2026 Q2.

# ZM — Zoom Video Communications Inc.

Held by 1 investor · USD 2,140,000 total · 2026 Q2 · reported price USD 86.30 (split-adjusted).
Page: https://gigainvestors.com/s/ZM

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Robert Torray (https://gigainvestors.com/T) | USD 2,140,000 | 0.3% | new |

## Total held by quarter

- 2019 Q2: USD 106,548,000 · 1 holder · USD 88.79
- 2019 Q3: USD 91,440,000 · 1 holder · USD 76.20
- 2019 Q4: USD 83,457,864 · 1 holder · USD 68.04
- 2020 Q1: USD 179,230,792 · 1 holder · USD 146.12
- 2020 Q2: USD 841,360,574 · 2 holders · USD 253.54
- 2020 Q3: USD 854,801,013 · 1 holder · USD 470.11
- 2020 Q4: USD 487,418,292 · 1 holder · USD 337.32
- 2021 Q1: USD 787,226,043 · 1 holder · USD 321.29
- 2021 Q2: USD 1,657,677,743 · 1 holder · USD 387.03
- 2021 Q3: USD 1,245,964,605 · 1 holder · USD 261.50
- 2021 Q4: USD 1,127,458,968 · 1 holder · USD 183.91
- 2022 Q1: USD 121,919,200 · 1 holder · USD 117.23
- 2022 Q2: USD 0 · 0 holders
- 2022 Q3: USD 15,439,182 · 1 holder · USD 73.59
- 2022 Q4: USD 12,179,652 · 1 holder · USD 67.74
- 2023 Q1: USD 7,384,000 · 1 holder · USD 73.84
- 2023 Q2: USD 0 · 0 holders
- 2023 Q3: USD 0 · 0 holders
- 2023 Q4: USD 0 · 0 holders
- 2024 Q1: USD 0 · 0 holders
- 2024 Q2: USD 0 · 0 holders
- 2024 Q3: USD 0 · 0 holders
- 2024 Q4: USD 0 · 0 holders
- 2025 Q1: USD 0 · 0 holders
- 2025 Q2: USD 0 · 0 holders
- 2025 Q3: USD 0 · 0 holders
- 2025 Q4: USD 0 · 0 holders
- 2026 Q1: USD 0 · 0 holders
- 2026 Q2: USD 2,140,000 · 1 holder · USD 86.30