Should I Buy ZM? ZM 2026 Analysis

Should You Buy Zoom Communications Inc (ZM) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

92.580

1 Day change

-3.78%

52 Week Range

97.580

Analysis Updated At

2026/01/26

Zoom Communications Inc (ZM) is a good buy for a beginner investor with a long-term horizon and $50,000-$100,000 available for investment. The company's strong financial performance, improving analyst sentiment, and recent SwingMax entry signal support this recommendation. While insider selling and technical indicators show mixed signals, the overall outlook for long-term growth and stability makes it a suitable investment.

Technical Analysis

The stock's MACD is below 0 and negatively contracting, indicating bearish momentum. RSI is neutral at 64.939, and moving averages are converging, suggesting no clear trend. Key resistance levels are at 86.786 and 88.71, while support levels are at 80.56 and 78.636. Pre-market price is $86, slightly above the first resistance level, showing mild bullishness.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options data indicates a slightly bullish sentiment with a lower put-call ratio and significant interest in call options, particularly at the $110 strike price.

Technical Summary

Sell

Buy

Positive Catalysts

Strong financial performance in Q3 2026, with revenue up 4.44% YoY, net income up 196% YoY, and EPS up 204.55% YoY.
Analysts are raising price targets, with several firms maintaining Buy ratings and targets as high as $
SwingMax entry signal on 2026-01-23, indicating a buy-low opportunity.
Positive news sentiment, including Zacks rating Zoom as a Strong Buy and highlighting its enterprise revenue growth and low churn rates.

Neutral/Negative Catalysts

Insider selling has increased significantly (3447.69% in the last month), which could indicate reduced confidence from internal stakeholders.
Technical indicators are mixed, with MACD showing bearish momentum and no clear trend from RSI or moving averages.
Stock trend analysis suggests a 30% chance of a -6.39% decline in the next month.

Financial Performance

In Q3 2026, Zoom reported revenue of $1.23 billion, up 4.44% YoY. Net income surged 196% YoY to $612.87 million, and EPS increased 204.55% YoY to $2.01. Gross margin improved to 77.9%, up 2.65% YoY, showcasing strong operational efficiency and profitability.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have recently raised price targets, with the highest being $115 (Rosenblatt) and multiple firms maintaining Buy ratings. Analysts highlight stable enterprise revenue growth, low churn rates, and a promising AI product strategy. However, some firms remain Neutral, citing limited near-term growth expectations.

20 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 99.33 USD with a low forecast of 85 USD and a high forecast of 115 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.

12 Buy

7 Hold

1 Sell

Moderate Buy

Current: 96.220

Low

Averages

99.33

High

115

Current: 96.220

Low

Averages

99.33

High

115

Baird

Outperform

maintain

$95

AI Analysis

2026-01-26

New

Reason

Baird

Price Target

$95

AI Analysis

2026-01-26

New

maintain

Outperform

Reason

Baird notes that the firm and the market have been primarily focused on Zoom Communications' ability to gradually reaccelerate revenue growth and capture AI opportunities. However, "the quieter, hidden gem" might be its $51M investment in Anthropic in 2023, the analyst tells investors. At Anthropic's rumored current $350B valuation, the firm estimates that stake could be worth anywhere from $2B-$4B, depending on dilution assumptions, says the analyst, who has an Outperform rating and $95 price target on Zoom shares.

Piper Sandler

Neutral

maintain

$85 -> $91

2026-01-05

Reason

Piper Sandler

Price Target

$85 -> $91

2026-01-05

maintain

Neutral

Reason

Piper Sandler raised the firm's price target on Zoom Communications to $91 from $85 and keeps a Neutral rating on the shares. The firm says it is raising multiple to 10-times free cash flow.

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ZM Should I Buy

ZM Should I Buy

Should You Buy Zoom Communications Inc (ZM) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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