Zoom Communications Stock Slides Ahead Of Earnings

by | Feb 23, 2026 | General

Zoom Video Communications, Inc. (NASDAQ:ZM) is under pressure Monday, dropping ahead of its closely watched quarterly earnings report due after the market close on Wednesday.

Zoom’s decline is unfolding against a backdrop for equities broadly. The Nasdaq Composite is off 1.25% while the S&P 500 has shed 1.02% on Monday.

What Analysts Expect From Q4 2026

Wall Street is projecting earnings per share of $1.27 on revenue of $1.23 billion for Q4 2026, according to consensus estimates. That compares to EPS of $1.41 in the year-ago quarter, though revenue is seen rising from $1.18 billion year-over-year.

The San Jose-based video communications company has beaten EPS estimates in eight consecutive quarters. In Q3, Zoom reported EPS of $1.52, topping the $1.21 estimate, with revenue of $1.23 billion edging past the $1.21 billion forecast.

Technical Analysis

Zoom Communications is currently trading 9.4% below its 20-day simple moving average (SMA) and 2.7% below its 100-day SMA, indicating some short-term bearishness.

However, it remains 1.4% above its 200-day SMA, suggesting some resilience in a longer-term view. Over the past 12 months, the stock has seen a modest increase of 2.75%, and it is now trading closer to its 52-week high of $97.58 than its low of $64.41.

Analyst Consensus & Recent Actions:

The stock carries a Buy Rating with an average price target of $91.07. Recent analyst moves include:

  • Citigroup: Upgraded to Buy (Raises Target to $106.00) (Jan. 12)
  • Piper Sandler: Neutral (Raises Target to $91.00) (Jan. 5)
  • Jefferies: Buy (Raises Target to $105.00) (Nov. 25, 2025)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Zoom Communications, highlighting its strengths and weaknesses compared to the broader market:

  • Value Rank: Moderate (Score: 61.66/100) — Reflects a fair valuation relative to market peers.
  • Quality Rank: Neutral (Score: 45.71/100) — Indicates a moderate quality score, suggesting average financial health and profitability.
  • Momentum Rank: Neutral (Score: 52.28/100) — Shows a neutral momentum trend in the market context.

ZM Price Action: Zoom Communications shares were down 7.86% at $83.19 at the time of publication on Monday, according to Benzinga Pro data.

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