ZM (Zoom Communications) 1-Year Share Buyback Ratio: 2.60% (As of Jul. 2026 )

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ZM Zoom Communications Inc ZM
87 GF Score
Price $92.16
GF Value $85.50
Valuation Fairly Valued
! 4 Warning Signs
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What is Zoom Communications 1-Year Share Buyback Ratio?

Zoom Communications ZM +0.24% 87 1-Year Share Buyback Ratio is 2.60 as of Jul. 2026. GuruFocus rates ZM with a GF Score™ of 87/100 and a GF Value™ of $85.50 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,794 Software companies, Zoom Communications ranks better than 88.35% on this metric.

Shares Outstanding (EOP) are shares that have been authorized, issued, and purchased by investors and are held by them.

1-Year Share Buyback Ratio measures the proportion of a company's outstanding shares repurchased over the past year, calculated as the percentage change in shares outstanding from the previous year to the current year. A positive ratio may indicates share buybacks over the period, while a zero or negative ratio suggests no buybacks or potential share issuance. Zoom Communications's current 1-Year Share Buyback Ratio was 2.60%.

ZM's 1-Year Share Buyback Ratio is ranked better than
88.35% of 1794 companies
in the Software industry
Industry Median: -1.2 vs ZM: 2.60

Zoom Communications  (NAS:ZM) 1-Year Share Buyback Ratio Explanation

A positive ratio may indicates share buybacks over the period, while a zero or negative ratio suggests no buybacks or potential share issuance.


Be Aware

Investors usually like share buybacks. But as pointed by Warren Buffett, only if a company buys back shares at the prices below the stock's intrinsic value, it rewards remaining shareholders. If a company buys its overvalued stocks back, it destroys shareholder value.


Zoom Communications 1-Year Share Buyback Ratio Related Terms


ZM vs BSP, FICO, SSNC: 1-Year Share Buyback Ratio Comparison

For the Software - Application subindustry, Zoom Communications's 1-Year Share Buyback Ratio, along with its competitors' market caps and 1-Year Share Buyback Ratio 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 1-Year Share Buyback Ratio vs Software Industry

For the Software industry and Technology sector, Zoom Communications's 1-Year Share Buyback Ratio distribution charts can be found below:

* The bar in red indicates where Zoom Communications's 1-Year Share Buyback Ratio falls into.


ZM
87GF Score
Zoom Communications Inc ZM
1-Year Share Buyback Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Zoom Communications 1-Year Share Buyback Ratio Calculation

Zoom Communications's 1-Year Share Buyback Ratio for the quarter that ended in Jul. 2026 is calculated as

1-Year Share Buyback Ratio=(Shares Outstanding (EOP) (Jul. 2025 ) - Shares Outstanding (EOP) (Jul. 2026 )) / Shares Outstanding (EOP) (Jul. 2025 )
=(300.120084 - 292.32795) / 300.120084
=2.6%

* 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.

What does a 1-Year Share Buyback Ratio of 2.60 mean?
Zoom Communications (ZM) has a 1-Year Share Buyback Ratio of 2.60 as of Jul. 2026. The 1-Year Share Buyback Ratio measures the proportion of a company's outstanding shares repurchased over the past year, calculated as the percentage change in shares outstanding from the previous year to the current year. View historical data for Zoom Communications and its competitors. According to the industry distribution chart, Zoom Communications ranks #209 out of 1794 companies in the Software industry, placing it in the top 11.6%.
Is Zoom Communications' 1-Year Share Buyback Ratio too high?
Zoom Communications' current 1-Year Share Buyback Ratio is 2.60. Based on the distribution chart, Zoom Communications ranks #209 out of 1794 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 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zoom Communications' 1-Year Share Buyback Ratio compare to BSP and FICO?
According to the Software industry distribution chart, Zoom Communications ranks #209 out of 1794 companies for 1-Year Share Buyback Ratio. This places Zoom Communications in the top 12% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Share Buyback Ratio for a Software company?
A good 1-Year Share Buyback Ratio depends on the Software industry context. However, 1-Year Share Buyback Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Share Buyback Ratio mean?
A high 1-Year Share Buyback Ratio can signal that a stock is expensive relative to its fundamentals. The 1-Year Share Buyback Ratio measures the proportion of a company's outstanding shares repurchased over the past year, calculated as the percentage change in shares outstanding from the previous year to the current year. View historical data for Zoom Communications and its competitors. Zoom Communications's current 1-Year Share Buyback Ratio is 2.60. 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 (ZM) is currently considered Fairly Valued. The stock's GF Value™ is $85.50, compared to a current price of $92.16 — trading 7.8% above its estimated fair value. The current 1-Year Share Buyback Ratio is 2.60. Zoom Communications' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Share Buyback Ratio calculated?
1-Year Share Buyback Ratio is calculated from a company's financial statements. For Zoom Communications (ZM), the current 1-Year Share Buyback Ratio is 2.60 as of Jul. 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 (ZM) Overvalued in 2026?

Based on GuruFocus' analysis, Zoom Communications stock appears to be overvalued. The current stock price of $92.16 is trading 7.8% above its estimated GF Value™ of $85.50. GuruFocus considers Zoom Communications to be Fairly Valued.

Key valuation signals for ZM:

  • 1-Year Share Buyback Ratio: 2.60
  • GF Value™: $85.50 vs. price of $92.16 (7.8% above fair value)
  • GF Score™: 87/100 with 4 warning signs

No single metric tells the full story. See the 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.
87GF Score

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1-Year Share Buyback Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$92.16
Price
$85.50
GF Value