Is Zoom Communications, Inc. (ZM) Halal?

NASDAQ Technology United States $23.0B
✗ NOT HALAL
Confidence: 90/100
Zoom Communications, Inc. (ZM) is Not Halal under AAOIFI Standard 21. While the debt ratio of 0.3% is acceptable, the cash and interest-bearing securities ratio of 34.1% exceeds the 30% threshold. Zoom Communications, Inc. operates in the Technology sector.

Shariah Screening — 5 Standards

Based on financial data from January 2026

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.3%
/ 30%
34.1%
/ 30%
2.2%
/ 30%
26.67%
/ 5%
✗ NOT HALAL
DJIM 0.3%
/ 33%
34.1%
/ 33%
2.2%
/ 33%
26.67%
/ 5%
✗ NOT HALAL
MSCI 0.5%
/ 33%
65.4%
/ 33%
4.2%
/ 33%
26.67%
/ 5%
✗ NOT HALAL
S&P 0.3%
/ 33%
34.1%
/ 33%
2.2%
/ 33%
26.67%
/ 5%
✗ NOT HALAL
FTSE 0.5%
/ 33%
65.4%
/ 33%
4.2%
/ 50%
26.67%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
12.6
Forward: 12.7
EPS
$6.18
P/B Ratio
2.3
EV/EBITDA
11.9
EV: $15.1B
Revenue
$4.9B
Growth: 5.3%
Beta
1.0
Average volatility
Current Ratio
4.3

Profitability

Gross Margin 77.4%
Operating Margin 21.5%
Net Margin 39.0%
Return on Equity (ROE) 20.3%
Return on Assets (ROA) 6.2%

Cash Flow & Balance Sheet

Operating Cash Flow$2.0B
Free Cash Flow$1.9B
Total Debt$58M
Debt-to-Equity0.6
Current Ratio4.3
Total Assets$12.0B

Price & Trading

Last Close$79.32
50-Day MA$83.68
200-Day MA$81.69
Avg Volume4.0M
Beta1.0
52-Week Range
$64.41
$97.58

About Zoom Communications, Inc. (ZM)

CEO
Mr. Eric S. Yuan
Employees
7,438
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap
$23.0B
Currency
USD

Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.

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Frequently Asked Questions

Is Zoom Communications, Inc. (ZM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Zoom Communications, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Zoom Communications, Inc.'s debt ratio?

Zoom Communications, Inc.'s debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.5%.

What are Zoom Communications, Inc.'s key financial metrics?

Zoom Communications, Inc. has a market capitalization of $23.0B, trailing P/E ratio of 12.6, and revenue of $4.9B. The company maintains a gross margin of 77.4% and a net margin of 39.0%. Return on equity stands at 20.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.