Zoom Communications (XSWX:ZM) 3-Year RORE % : 28.39% (As of Apr. 2026)


XSWX:ZM Zoom Communications Inc XSWX:ZM
85 GF Score
Price CHF68.47
GF Value CHF63.80
! 3 Warning Signs
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What is Zoom Communications 3-Year RORE %?

Zoom Communications XSWX:ZM +0.85% 85 3-Year RORE % is 28.39 as of Apr. 2026. GuruFocus rates XSWX:ZM with a GF Score™ of 85/100 and a GF Value™ of CHF63.80. The stock has 3 warning signs investors should review. Among 2,537 Software companies, Zoom Communications ranks better than 75.8% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Zoom Communications's 3-Year RORE % for the quarter that ended in Apr. 2026 was 28.39%.

The industry rank for Zoom Communications's 3-Year RORE % or its related term are showing as below:

XSWX:ZM's 3-Year RORE % is ranked better than
75.8% of 2537 companies
in the Software industry
Industry Median: 3.07 vs XSWX:ZM: 28.39

Zoom Communications  (XSWX:ZM) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Zoom Communications 3-Year RORE % Related Terms


Zoom Communications 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for Zoom Communications's 3-Year RORE % 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.

Zoom Communications 3-Year RORE % Chart

Zoom Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 64.75 -26.55 -37.65 51.27 33.01

Zoom Communications Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.76 46.65 48.15 33.01 28.39

XSWX:ZM vs FICO, TEAM, ROP: 3-Year RORE % Comparison

For the Software - Application subindustry, Zoom Communications's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Software Industry

For the Software industry and Technology sector, Zoom Communications's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Zoom Communications's 3-Year RORE % falls into.


XSWX:ZM
85GF Score
Zoom Communications Inc XSWX:ZM
3-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Zoom Communications 3-Year RORE % Calculation

Zoom Communications's 3-Year RORE % for the quarter that ended in Apr. 2026 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 5.4-2.366 )/( 10.688-0 )
=3.034/10.688
=28.39 %

* 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.

In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Apr. 2026 and 3-year before.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of 28.39 mean?
Zoom Communications (XSWX:ZM) has a 3-Year RORE % of 28.39 as of Apr. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Zoom Communications and its competitors. According to the industry distribution chart, Zoom Communications ranks #614 out of 2537 companies in the Software industry, placing it in the top 24.2%.
Is Zoom Communications' 3-Year RORE % too high?
Zoom Communications' current 3-Year RORE % is 28.39. The Software industry median 3-Year RORE % is 3.07. Zoom Communications' value of 28.39 is 824.8% above this industry median. Based on the distribution chart, Zoom Communications ranks #614 out of 2537 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 85/100, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' 3-Year RORE % compare to FICO and TEAM?
According to the Software industry distribution chart, Zoom Communications ranks #614 out of 2537 companies for 3-Year RORE %. This places Zoom Communications in the top 24% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 3.07. Zoom Communications' value of 28.39 is 824.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Software company?
The median 3-Year RORE % among Software companies is 3.07, based on 2,537 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoom Communications's current 3-Year RORE % of 28.39 is 824.8% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Zoom Communications and its competitors. For the Software industry, the median 3-Year RORE % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoom Communications's current 3-Year RORE % is 28.39. 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?
Zoom Communications (XSWX:ZM) has a current 3-Year RORE % of 28.39. The stock's GF Value™ is CHF63.80, compared to a current price of CHF68.47 — trading 7.3% above its estimated fair value. The current 3-Year RORE % is 28.39 and 824.8% above the Software industry median of 3.07. Zoom Communications' overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Zoom Communications (XSWX:ZM), the current 3-Year RORE % is 28.39 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 (XSWX:ZM) Overvalued in 2026?

Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued. The current stock price of CHF68.47 is trading 7.3% above its estimated GF Value™ of CHF63.80.

Key valuation signals for XSWX:ZM:

  • 3-Year RORE %: 28.39
  • GF Value™: CHF63.80 vs. price of CHF68.47 (7.3% above fair value)
  • GF Score™: 85/100 with 3 warning signs
  • Industry Position: 824.8% above the Software median (#614 of 2537)

No single metric tells the full story. See the XSWX:ZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zoom Communications Business Description

Address 55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
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.
85GF Score

Get the complete analysis for XSWX:ZM

3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF68.47
Price
CHF63.80
GF Value