Zoom CommunicationsMEX:ZM 76 Net Margin % is 34.36% as of Apr. 2026, which is 279% above its 10-year median of 9.07. GuruFocus rates MEX:ZM with a GF Score™ of 76/100 and a GF Value™ of MXN1,461.40 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,827 Software companies, Zoom Communications ranks better than 97.42% on this metric.
The historical rank and industry rank for Zoom Communications's Net Margin % or its related term are showing as below:
MEX:ZM'
s Net Margin % Range Over the Past 10 Years
Min: -2.52 Med: 9.07 Max: 41.99
Current: 41.99
MEX:ZM's Net Margin % is ranked better than 97.42% of 2827
companies
in the Software industry
Industry Median: 2.54
vs MEX:ZM: 41.99
Zoom Communications (MEX:ZM) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Zoom Communications Net Margin % Related Terms
Zoom Communications Net Margin % Historical Data
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The historical data trend for Zoom Communications's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ZM vs FICO, TEAM, ROP: Net Margin % Comparison
For the Software - Application subindustry, Zoom Communications's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zoom Communications Net Margin % vs Software Industry
For the Software industry and Technology sector, Zoom Communications's Net Margin % distribution charts can be found below:
* The bar in red indicates where Zoom Communications's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zoom Communications (MEX:ZM) has a Net Margin % of 34.36% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Zoom Communications and its competitors. This is 279% above median its historical median of 9.07. According to the industry distribution chart, Zoom Communications ranks #73 out of 2827 companies in the Software industry, placing it in the top 2.6%.
Is Zoom Communications' Net Margin % too high?
Zoom Communications' current Net Margin % of 34.36% is 279% above median its 10-year median of 9.07. The Software industry median Net Margin % is 2.54. Zoom Communications' value of 34.36% is 1252.8% above this industry median. Based on the distribution chart, Zoom Communications ranks #73 out of 2827 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Zoom Communications has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' Net Margin % compare to FICO and TEAM?
According to the Software industry distribution chart, Zoom Communications ranks #73 out of 2827 companies for Net Margin %. This places Zoom Communications in the top 3% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Zoom Communications' value of 34.36% is 1252.8% above this benchmark. While the company's 10-year median is 9.07 vs. the industry median of 2.54, Zoom Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current Net Margin % of 34.36% is 1252.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Zoom Communications and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current Net Margin % is 34.36%, which is 279% above median its own 10-year median of 9.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoom Communications stock overvalued right now?
Based on GuruFocus' analysis, Zoom Communications (MEX:ZM) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,461.40, compared to a current price of MXN1,503.11 — trading 2.9% above its estimated fair value. The current Net Margin % is 34.36%, which is 279% above median its 10-year median of 9.07 and 1252.8% above the Software industry median of 2.54. Zoom Communications' overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Zoom Communications (MEX:ZM), the current Net Margin % is 34.36% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zoom Communications (MEX:ZM) Overvalued in 2026?
Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued.
The current stock price of MXN1,503.11 is trading 2.9% above its estimated GF Value™ of MXN1,461.40.
GuruFocus considers Zoom Communications to be Fairly Valued.
Key valuation signals for MEX:ZM:
Net Margin %: 34.36% (279% above median its 10-year median of 9.07)
GF Value™: MXN1,461.40 vs. price of MXN1,503.11 (2.9% above fair value)
Industry Position: 1252.8% above the Software median (#73 of 2827)
No single metric tells the full story. See the MEX:ZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables video experiences and connects users across various devices and locations in a single meeting. Zoom has launched a variety of communications-related solutions, including Zoom Phone and Zoom Contact Center. The firm was founded in 2011 and serves companies of all sizes from all industries around the world.
76GF Score
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