Zoom’s Critical Earnings Test Approaches

The investment community is watching closely as Zoom prepares to release its third-quarter 2026 financial results after market close on Monday, November 24, 2025. With expectations running high, the video communications specialist faces a pivotal moment that could define its near-term trajectory.

While market experts anticipate strong performance, recent activity from corporate insiders has raised eyebrows. Financial chief Michelle Chang disposed of 33,956 shares valued at $2.78 million. Director Santiago Subotovsky also reduced his stake in the company. Collectively, insiders sold 393,848 shares worth $32.7 million during the previous quarter.

This wave of selling just ahead of earnings announcements naturally prompts questions about management's outlook. The transactions appear particularly noteworthy given that researchers project earnings of $1.43 per share on revenue of $1.2131 billion.

Strategic Shifts and Competitive Pressures

Zoom's substantial bet on artificial intelligence represents a cornerstone of its growth strategy. The company's collaboration with NVIDIA aims to transform Zoom Workplace into an "AI-first platform," while its Zoom Phone service has surpassed 10 million seats globally.

Should investors sell immediately? Or is it worth buying Zoom?

The competitive landscape remains challenging, however. Microsoft Teams, RingCentral, and Cisco Webex continue to advance their integrated collaboration suites. Zoom's partnership with Oracle to deploy a 15,000-seat contact center solution demonstrates its counteroffensive in the enterprise space.

One notable institutional investor appears convinced about Zoom's direction. Handelsbanken Fonder AB dramatically increased its position by 183.5% in the second quarter, acquiring 465,429 additional shares in a strong endorsement of the company's long-term prospects.

• Earnings Release: Monday, November 24, 2025 (after market close)
• Projected EPS: $1.43
• Expected Revenue: $1.2131 billion
• Recent Insider Sales: $32.7 million
• Key Institutional Move: Handelsbanken +183.5% position increase

Market Positioning and Analyst Sentiment

With a current market capitalization of $25.48 billion, the upcoming earnings report carries significant weight for Zoom's valuation. Most analysts maintain a cautious "hold" stance with price targets hovering around $92 per share.

The critical question remains whether Zoom's quarterly results will deliver positive surprises or validate the concerning signals sent by insider selling activity. The company stands at a crossroads, balancing technological innovation against intense market competition and shifting investor expectations.