Zoom Video Communications (NASDAQ: ZM) Prepares for Q1 Earnings Amid AI Expansion

Font: Financial Modeling Prep  • May 21, 2026

• Zoom Video Communications is set to report its quarterly earnings on May 21, 2026, with analysts expecting $1.41 EPS and $1.22 billion in revenue.
• The company anticipates 4.2% revenue growth, fueled by its expansion into AI and the success of its Zoom Phone service, despite a projected 1.4% decline in EPS.
• Despite challenges from foreign currency and AI monetization, Zoom Video Communications maintains strong financial stability with a P/E ratio of 15.00, a Debt-to-Equity ratio of 0.006, and a current ratio of 4.33.

Zoom Video Communications (NASDAQ: ZM) is a leading technology company famous for its video conferencing software. It offers comprehensive communication services to both businesses and individuals, positioning it in competition with platforms like Microsoft Teams and Google Meet. Zoom Video Communications is also strategically expanding its services to include cutting-edge artificial intelligence (AI) and other essential business tools.

The company is set to report its highly anticipated quarterly earnings on May 21, 2026. Ahead of the announcement, shares of Zoom Video Communications rose 2.1% to close at $99.42. Wall Street analysts are watching closely, with many expecting an earnings per share (EPS) of $1.41. EPS is a company's profit divided by its number of common shares.

Analysts predict quarterly revenue will be around $1.22 billion. This figure represents a 4.2% increase from the $1.17 billion reported in the same quarter last year. This expected growth is supported by the company's strategic expansion into AI, strong performance with business clients, and significant growth in its Zoom Phone service, which now boasts over ten million seats.

However, the expected EPS of $1.41 would be a 1.4% decline from the $1.43 per share reported a year ago. As highlighted by Zacks Equity Research, the consensus EPS estimate has not changed in the last 30 days. The company also faces challenges from foreign currency exchange rates and questions about how it will monetize its new AI features.

From a valuation standpoint, Zoom Video Communications has a Price-to-Earnings (P/E) ratio of 15.00, which suggests investors are paying $15 for every $1 of the company's profit. The company's financial stability appears solid, with a very low Debt-to-Equity ratio of 0.006 and a strong current ratio of 4.33, indicating it has enough assets to cover its short-term liabilities.