Zoom Analyst Predicts Q1 Beat But Chooses To Stay On Sidelines: Retail Factors In Muted Stock Reaction

A Zoom Communications, Inc. (ZM) analyst remained optimistic about the company's imminent quarterly results despite maintaining a cautious stance.

The video-conferencing app provider is scheduled to announce its financial results for the first quarter of the fiscal year 2026 after the market closes on Wednesday.

The Finchat-compiled consensus calls for adjusted earnings per share (EPS) of $1.34 on revenue of $1.18 billion. The guidance issued in February is for a range of $1.29-$1.31 and $1.162 billion-$1.167  billion, respectively.

Morgan Stanley analyst Meta Marshall expects a 100 basis-point topline upside relative to the consensus. The analyst cites better-than-expected prints from communication software and small and medium business (SMB)-focused peers, and checks, suggesting largely stable demand.

The analyst expects in-line gross margins and about 100-basis-point upside to operating margins relative to Morgan stanley's estimates, with continued share repurchases likely helping a three-to-four-point beat.

Marshall, however, sees the company maintaining guidance due to the macro backdrop and the previous outlook factoring in a slight second-half acceleration.

"While valuation remains cheap in aggregate, lean cautious on potential for larger topline re-acceleration in [the] current backdrop that could turn us more positive," she added.

Zoom's fiscal year 2026 guidance anticipates adjusted EPS of $5.34-$5.37 and revenue of $4.785 billion-$4.795 billion.

On Stocktwits, retail sentiment toward Zoom Communications stock was 'neutral' early Monday, with the message volume at 'normal' levels.

A watcher said they have muted expectations for the stock even in the largest raging bull market. "Stock will beat bigly yet do nothing. Just accumulate until the market wakes up to it," they said.

Another watcher called Zoom Communications a "boring" stock, adding that they would pay attention to it if it broke above a key barrier and advanced to the next stage.

Zoom Communications stock traded down 1.57% at $83.29 in Monday's early premarket session, but it is up about 4% this year.

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