When Will Zoom Finally Shake Off Its Pandemic Label?

Once a household name during lockdowns, Zoom Video Communications (ZM) had its moment in the sun. The unified communications platform that bundled video conferencing, audio, screen sharing, and instant messaging became indispensable for millions working and studying from home. Shares soared during that extraordinary period as adoption exploded across the globe.

However, what goes up inevitably faces headwinds. As offices reopened and hybrid work models emerged, Zoom’s astronomical growth decelerated sharply. The company’s revenue trajectory, which had skyrocketed during the pandemic, leveled off considerably in subsequent years. This stumbling block has weighed heavily on investor sentiment, with the stock struggling to recapture its former momentum.

The Numbers Tell a Story

Recent analyst activity suggests a potential turning point. Earnings per share expectations for Zoom’s current fiscal year have climbed to $5.96, representing nearly 13% improvement over the preceding twelve months. This upward revision among the analyst community reflects growing confidence in the company’s direction.

On the revenue front, projections for the fiscal year stand at $4.8 billion, marking a modest 2% increase year-over-year. While not explosive, this steadiness indicates the company may have stabilized after years of volatility following its pandemic-era peak.

A Thorn Symbol of Market Adaptation

Zoom’s journey from pandemic darling to overlooked equity serves as a thorn symbol of how quickly market narratives can shift. Companies that benefit from extraordinary circumstances often face the challenge of sustaining momentum once those circumstances normalize. The company’s struggle to demonstrate sustainable growth beyond remote work tailwinds represents a critical inflection point.

Yet recent estimate upgrades suggest institutional investors are beginning to recognize value in the battered stock. The confluence of stable revenue and improving profitability metrics may signal that the market has finally priced in a realistic, post-pandemic version of the business—one that might surprise skeptics on the upside.