Analysts See Buyback Potential for Software Firms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2026
0mins
Source: seekingalpha
- Increased Buyback Programs: Analysts at Needham highlight that enterprise software companies like Zoom, Freshworks, and monday.com could see significant growth in free cash flow per share if they executed larger stock buybacks, particularly given current market valuations.
- Market Sentiment Impact: While current market sentiment may limit the immediate impact on free cash flow per share growth in the software sector, analysts believe that if the value of the software layer persists towards the end of the cycle, these buybacks could drive financially engineered share price gains.
- Cash Reserve Advantage: Among the companies covered by Needham, monday.com, Freshworks, and CS Disco have the highest percentage of net cash relative to their market caps, indicating their flexibility in capital management to leverage this for buybacks.
- Potential Growth Opportunities: Analysts suggest that if these six companies increase their buyback sizes, it could lead to meaningful free cash flow per share growth, providing long-term stock price benefits for investors.
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Analyst Views on ZM
Wall Street analysts forecast ZM stock price to fall
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 100.460
Low
85.00
Averages
99.33
High
115.00
Current: 100.460
Low
85.00
Averages
99.33
High
115.00
About ZM
Zoom Communications, Inc. provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Company’s AI-powered, open collaboration platform built for modern work, enables us to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion, includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom Docs, Zoom Whiteboard, Zoom Clips, and Zoom Tasks. Its space products include Zoom Rooms, Zoom Workspace Reservation, and Zoom Visitor Management. It serves various industries, including education, financial services, government, retail, manufacturing and healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Product Adoption: The number of AI Companion paid users surged by 184%, while My Notes reached 1.5 million licensed users within just four months of launch, reflecting strong demand for AI-driven tools and propelling the company's transformation into a comprehensive business communications platform.
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