Zoom's Growth Momentum: Analyst Consensus Points to Steady Boom in Q3 Performance

As Zoom Communications prepares to release its Q3 financial results, Wall Street analysts are painting a picture of modest but consistent expansion. The consensus EPS projection stands at $1.43 per share, marking a 3.6% year-over-year uptick, while revenue expectations hover around $1.21 billion—a 3% increase from the prior year period.

What’s particularly noteworthy is the stability in these forecasts. Over the past month, the consensus EPS estimate has remained unchanged, suggesting that analysts have refined their outlooks and reached a settled view on Zoom’s near-term trajectory. This lack of revision itself carries significance: it indicates a confident, unified perspective among covering institutions about the company’s performance metrics.

Geographic Revenue Breakdown: The Boom Spreads Globally

Zoom’s international operations are expected to continue their upward trend across all major regions. The Americas segment is projected to generate $870.53 million in revenue, reflecting a 2.9% year-over-year increase. Meanwhile, Europe, the Middle East, and Africa (EMEA) are anticipated to contribute $194.32 million, representing a 3.9% gain. The Asia Pacific region (APAC) is forecasted at $148.63 million, showing a 3.2% uplift compared to the year-ago quarter.

These geographic projections underscore Zoom’s balanced global growth, with EMEA leading the expansion rate while the Americas maintains the largest absolute revenue base.

Customer Metrics Signal Mixed but Strengthening Dynamics

Enterprise customer levels are projected to reach 185,888, compared to 192,400 in the prior-year quarter. While this represents a year-over-year decline, it may reflect a shift in Zoom’s customer composition rather than declining demand.

In contrast, the high-value segment shows more promise. Analysts predict that customers generating over $100K in TTM revenue will expand to 4,341, up from 3,995 in the same quarter last year—a meaningful 8.7% increase that highlights Zoom’s success in deepening relationships with its largest accounts.

Remaining Performance Obligations: Future Revenue Visibility

The company’s performance obligation metrics paint an optimistic picture of future revenue streams. Current RPO is expected to reach $2.44 billion versus $2.28 billion in Q3 of the previous year, while total RPO is projected at $3.96 billion compared to $3.74 billion year-ago. Non-current RPO should arrive at $1.51 billion, slightly above the prior year’s $1.46 billion.

These figures suggest that Zoom has successfully secured commitments for future service delivery, providing management and investors with improved visibility into upcoming quarters’ revenue potential.

Market Performance and Forward Outlook

Zoom shares have declined 2.8% over the past month, underperforming the S&P 500’s -0.6% decline. With a Zacks Rank of #3 (Hold), the stock is anticipated to track with broader market movements in the near term. For investors monitoring Zoom, the consistent analyst consensus combined with strengthening high-value customer metrics offers a foundation for assessing whether the current valuation reflects the company’s steady boom in subscription and platform expansion.