Zoom Communications (ZM) trades at 8.3 times earnings, versus 22.8 times for the median S&P 500 company, even though the software maker expanded sales, margins and cash flow in the twelve months to July 2026. At the end of July 2026, Zoom held $7.25 billion in cash and short-term investments against about $60 million of debt, and repurchased about $352 million of stock in fiscal Q2 2027. However, the 8.3 multiple is based on $3.26 billion in net income over the twelve months to July 2026, almost three times the $1.19 billion in operating profit over the same period. Revenue growth was 5.0% in the latest twelve months versus 8.5% for the median S&P 500 company, Enterprise revenue rose 7.8% in fiscal Q2 2027, and management guides to 3.9% revenue growth at the midpoint for fiscal Q3 2027. The shares returned 5.4% in the year to November 2, 2026, trailing the S&P 500's 10.3%, and buyers are betting that Enterprise growth can lift total growth.
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