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Zacks Investment Ideas feature highlights: Zoom Video Communications

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For Immediate Release

Chicago, IL – October 22, 2025– Today, Zacks Investment Ideas feature highlights Zoom Video Communications (ZM - Free Report) .

This Pandemic-Era Stock Is Finally Roaring Back

Zoom Video Communications was a beloved stock in the pandemic era thanks to its explosive gains, with stay-at-home orders and other developments leading to huge growth for the company's platform.

The stock plunged as a result of a big growth cooldown post-pandemic, leading many to forget about the stock entirely. But shares have been quietly strong off 2024 lows, gaining 45% and widely outperforming the S&P 500 since. Lows were made in mid-August of 2024.

Zoom Lands Lucrative Customers

ZM's sales grew by nearly 5% from the year-ago period in its latest release, with adjusted EPS of $1.53 climbing 10% year-over-year. Its cash-generating abilities did see a nice boost, with operating cash flow of $516 million growing from the $449.3 million mark in the same period last year. Free cash flow of $508 million was up nearly 40% year-over-year.

Notably, the number of customers contributing more than $100,000 in trailing 12-month revenue was up +8.7% from the year-ago period. This growing, lucrative customer base is undoubtedly a huge positive trend for ZM's top-line performance moving forward.

The 5% quarterly sales growth rate in the above-mentioned period reflected the highest in eleven periods, further reinforcing the positive turnaround the company is currently experiencing.

Zoom upped its current year sales and free cash flow guidance following the above-mentioned period thanks to the recent momentum. Sales expectations for its current fiscal year have remained positive over the last year overall, with the $4.8 billion expected reflecting 3.8% year-over-year growth.

Bottom Line

Zoom Video Communications has seen its shares bounce back in a big way off 2024 lows, with a more lucrative customer base providing elevated sales growth. While no longer experiencing the supercharged growth as it did in the pandemic era, a growing and lucrative customer base still paves a nice outlook.

Upgraded sales and free cash flow guidance help confirm the momentum, with the stock also sporting the highly coveted Zacks Rank #1 (Strong Buy).

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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