Financial Performance: Zoom Video Communications reported a 4.7% year-over-year revenue increase to $1.22 billion for the fiscal second quarter, with non-GAAP diluted EPS of $1.53 and free cash flow rising 39% to $508 million.
AI Adoption Growth: The monthly active users of Zoom's AI Companion surged over fourfold year-over-year, contributing to significant enterprise wins and enhancing customer engagement through new AI features.
Operational Efficiency: Non-GAAP gross margin improved to 79.8%, and operating income exceeded guidance, showcasing the company's effective management of costs while investing in AI infrastructure.
Future Outlook: Management raised fiscal 2026 guidance, projecting revenue between $4.83 billion and $4.84 billion, driven by continued enterprise expansion and AI workloads, with expectations for material AI revenue growth from fiscal 2027 onward.
ZM
$87.91+Infinity%1D
Analyst Views on ZM
Wall Street analysts forecast ZM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZM is 92.84 USD with a low forecast of 69.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
Wall Street analysts forecast ZM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZM is 92.84 USD with a low forecast of 69.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
13 Hold
1 Sell
Moderate Buy
Current: 86.540
Low
69.00
Averages
92.84
High
115.00
Current: 86.540
Low
69.00
Averages
92.84
High
115.00
JPMorgan
Neutral
maintain
$85 -> $90
2025-11-25
Reason
JPMorgan
Price Target
$85 -> $90
2025-11-25
maintain
Neutral
Reason
JPMorgan raised the firm's price target on Zoom Communications to $90 from $85 and keeps a Neutral rating on the shares. The company reported "steady" Q3 results and has a path to gradually improve its growth.
Morgan Stanley
Equal Weight
maintain
$85 -> $92
2025-11-25
Reason
Morgan Stanley
Price Target
$85 -> $92
2025-11-25
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Zoom Communications to $92 from $85 and keeps an Equal Weight rating on the shares. Zoom's Q3 beat and FY26 raise show "solid execution" and a stable core, though near-term growth expectations remain low-to-mid single digits as investors wait for FY27 guidance, which the firm sees "limiting a narrative change or a re-rating," the analyst tells investors.
Jefferies
Buy
maintain
$100 -> $105
2025-11-25
Reason
Jefferies
Price Target
$100 -> $105
2025-11-25
maintain
Buy
Reason
Jefferies raised the firm's price target on Zoom Communications to $105 from $100 and keeps a Buy rating on the shares following the fiscal Q3 report. Zoom reported a 1% revenue beat and 6% earnings beat, with the upside coming from both enterprise and online, the analyst tells investors in a research note. Jefferies believes the company's artificial intelligence product strategy is resonating. The solid report and expanded buyback authorization should support the shares, contends the firm.
Bernstein
Peter Weed
Market Perform
maintain
$89 -> $90
2025-11-25
Reason
Bernstein
Peter Weed
Price Target
$89 -> $90
2025-11-25
maintain
Market Perform
Reason
Bernstein analyst Peter Weed raised the firm's price target on Zoom Communications to $90 from $89 and keeps a Market Perform rating on the shares. The firm notes Zoom's Q3 delivered the second straight quarter of mid-1% beat vs. midpoint guidance, helping to demonstrate it may be getting reliably back on a "normal" beat and raise cadence - this is in contrast to two and three quarters ago that were the only times below this level in several years. The strength was supported by the online business continuing to stabilize around lower levels of churn at about 2.7% monthly, and enterprise new customers showing incremental strength both overall and in the important over $100K spend category, Bernstein adds.
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.
