How Zoom Communications Stacks Up in the Competitive Video Conferencing Zoom Market

Zoom Communications delivered impressive third-quarter financial performance that exceeded Wall Street expectations. The company reported earnings of $1.52 per share, outperforming the consensus estimate of $1.43, while also marking an 10.1% increase compared to the prior year’s $1.38 per share. This represents a +6.29% surprise relative to analyst projections. On a sequential basis, Zoom had previously delivered $1.53 per share versus expectations of $1.37, demonstrating consistent outperformance.

The revenue picture equally strengthens Zoom’s position. For the quarter ending October 2025, the company recorded $1.23 billion in revenues, surpassing forecasts by 1.40% and growing from $1.18 billion year-over-year. Over the trailing four-quarter period, Zoom has exceeded consensus expectations on both earnings and revenue metrics four times each, signaling reliable execution.

However, the stock’s year-to-date performance tells a different story. Zoom shares have declined approximately 3.7% since January 2025, significantly lagging the S&P 500’s 12.3% gain. This underperformance raises questions about whether the zoom market has overvalued growth or if investors are pricing in future headwinds.

Decoding the Path Forward

Management’s commentary during the earnings call will prove critical in determining near-term stock trajectory. The key metric investors should monitor is the trend in earnings estimate revisions—research demonstrates a strong correlation between estimate trends and stock price movements.

Looking ahead, consensus expectations project $1.44 in earnings per share for the coming quarter on $1.22 billion in revenues. For the full fiscal year, the company is expected to generate $5.83 per share on $4.83 billion in total revenues. The current Zacks Rank assignment of #3 (Hold) suggests the stock should perform in line with broader market indices.

The Internet - Software industry, Zoom’s classification, currently ranks in the top 30% of 250+ Zacks industries. This favorable industry positioning matters, as the top-performing sectors historically outperform laggards by a factor exceeding 2-to-1.

Competitive Context Within the Zoom Market

Within the same Internet - Software classification, Samsara Inc. (IOT) provides an interesting comparison point. This competitor is scheduled to report October 2025 quarterly results on December 4. Samsara’s expected earnings of $0.12 per share would represent 71.4% year-over-year growth, with revenues anticipated at $399.44 million—a 24.1% increase from the prior year. The consistency of Samsara’s forecast (unchanged over the past month) contrasts with the volatility sometimes seen in quarterly revisions.

Investors evaluating opportunities in the zoom market and broader communication software space should recognize that industry dynamics, competitive positioning, and earnings revision trends will collectively shape investment outcomes. The question facing potential investors isn’t simply whether to buy, but rather whether current valuations adequately reflect both Zoom’s operational execution and the evolving competitive landscape of the video conferencing market.