Stock

Zoom Communications

Software - Application · Technology

Price

$94.19

-4.32 (-4.39%)

Market Cap

$27.48B

Exchange

NASDAQ

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Oct 18, 2026 · filings through Jul 31, 2026

§How the score breaks down

Quality

Strong

21/30

Growth

Exceptional

17/20

Cash Flow

Strong

7/10

Stability

Exceptional

10/10

Valuation

Good

6/10

Ownership

Good

8/15

Dividends

Not counted

n/a

69 of 95 counted points = Winston Score 73. Pillars marked n/a do not apply to this company and are left out of the total.

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§Winston Score History

The full picture

Zoom Communications, Inc. engages in the provision of a communications and collaboration platform. It operates through the following geographical segments: Americas, Asia Pacific, and Europe, Middle East, and Africa. The company was founded by Eric S. Yuan in 2011 and is headquartered in San Jose, CA.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+341.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$845M/ year

→ Flat (-1% vs prior year)

17.4% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

9.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$11.0B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Zoom Communications is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.5% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 305.8M (2022) → 307.3M (2026)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

77.2%

Premium pricing power — 77.2% gross margin

Profit after running costs

Operating Margin

24.6%

Excellent — 24.6% operating margin

Return on the money invested

ROCE

10.5%

Below par — 10.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+5.0%

Slow sales growth (+5.0% YoY)

Profit growth

EPS YoY

+182.4%

Earnings growing fast (+182.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

61%

Modest — 61% of profit becomes cash

Spare cash per sale

FCF Margin

38.6%

Converts sales into free cash efficiently (38.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.00

Conservative — low debt load (0.00)

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

8.6x

Attractive valuation — P/E 8.6

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-5.1

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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