Zoom Communications

ZM · NASDAQ

$97.46−$0.13 (−0.13%)TodayMarket closed ·
Prev close $97.59

ZM analyst rating

BuyConsensus of 21 analysts over the last 12 months. 52% rate it a buy.
  • Strong buy0
  • Buy11
  • Hold10
  • Underperform0
  • Sell0

12-month price target · 29 analysts

Average $119.98 (+23.1% upside)

Low
$79.79
Now
$97.46
High
$141.75

Upgrades and downgrades

The latest rating actions, newest first

ZM analyst upgrades, downgrades and rating actions
FirmDateActionRating
Morgan StanleyAug 26, 2026MaintainsEqual-Weight
JefferiesAug 26, 2026MaintainsBuy
RBC CapitalAug 26, 2026MaintainsOutperform
CitizensAug 26, 2026MaintainsMarket Perform
KeybancAug 26, 2026MaintainsSector Weight
RosenblattAug 26, 2026MaintainsBuy
BTIGAug 26, 2026MaintainsBuy
NeedhamAug 26, 2026MaintainsBuy
Cantor FitzgeraldAug 26, 2026MaintainsNeutral
Cantor FitzgeraldAug 24, 2026MaintainsNeutral

The case for and against

Updated Oct 14, 2026

Bull case

Zoom Communications is benefiting from a clear enterprise-led inflection, with total revenue up 4.9% and enterprise revenue rising 7.8%, its strongest pace in three years, while enterprise customers now represent 62% of revenue and net dollar expansion held at 99%. Its bullish case is reinforced by durable growth drivers in AI, including 125% year-over-year growth in licensed monthly active users of AI features across Zoom Workplace, a 14% increase in total RPO to $4.5 billion, and deferred revenue growth of 6%, all signaling improving demand visibility. Management’s focus on elevating workplace productivity with AI, scaling AI-first customer experience, and expanding new AI products, alongside continued traction in Zoom Phone and Zoom Contact Center, supports long-term monetization and disciplined profitability even as online remains a headwind.

Bear case

Zoom Communications is facing a valuation and execution problem: despite F2Q27 revenue of $1.28 billion, non-GAAP EPS of $1.55, and RPO of $4.5 billion, the stock fell after the report because investors were focused on slowing online growth and only in-line operating margin. Rising AI usage is also pressuring profitability, with non-GAAP gross margin slipping to 79.1% as management acknowledged higher AI-related expenses, while guidance shifting from a “slight increase” to flat suggests limited near-term acceleration. Although ZCX and AI products are gaining traction, the company still faces intense competition, execution risk from a newer management team, outage and security concerns, and elevated expectations that leave little room for disappointment.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.