Update shared on19 Sep 2025
Fair value Increased 0.73%The consensus analyst price target for Zoom Communications edged up to $92.30, as strong Q2 results, accelerating revenue growth, expanding AI-driven products, and robust large-customer momentum outweighed ongoing macro uncertainties.
Analyst Commentary
- Bullish analysts raised price targets due to solid Q2 results, with the company's revenue growth reaching its highest level in 11 quarters, providing quarterly beats and upgraded forward guidance.
- Bullish analysts cited product momentum, especially in Zoom Phone and agentic AI monetization, as detailed during major company events, as supporting increased confidence in longer-term growth.
- Increased estimates and positive outlooks were fueled by continued platform expansion, stable net retention, and accelerating growth among large ($100K+) customers.
- The company's more aggressive share buyback strategy and ongoing traction with AI-driven products were highlighted as positive catalysts for share price appreciation.
- Bearish analysts acknowledged strong quarterly performance but lowered targets or remained cautious due to ongoing macroeconomic uncertainty, dynamic market conditions, and increased scrutiny in the enterprise segment.
What's in the News
- Zoom Communications completed a share buyback program, repurchasing 5.95 million shares between May and July 2025 for $463.4 million, with a total of 27.4 million shares (8.94% of shares outstanding) repurchased for $1.98 billion since February 2024 (Key Developments).
- Q3 FY2026 revenue guidance is $1.210–$1.215 billion; full-year FY2026 revenue is projected at $4.825–$4.835 billion, showing continued expectations of stable growth (Key Developments).
- Zoom launched a new concierge use case for its Virtual Agent, now integrated with Zoom Phone, and debuted Zoom Hub, a content management center to streamline user organization and workflows (Key Developments).
- Significant expansion of AI Companion features, including support for 16 third-party apps, new workflow automations, cross-platform compatibility (Google Meet, Cisco Webex pending), advanced document collaboration, and direct project management integrations with leading applications like Asana and Jira (Key Developments).
- New AI-driven productivity tools aim to improve customer service, manage sales and service tickets, automate project updates, and reduce communication silos, enhancing value for SMBs, consultants, and enterprise clients (Key Developments).
Valuation Changes
Summary of Valuation Changes for Zoom Communications
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $91.63 to $92.30.
- The Consensus Revenue Growth forecasts for Zoom Communications has risen from 3.4% per annum to 3.6% per annum.
- The Future P/E for Zoom Communications remained effectively unchanged, moving only marginally from 27.05x to 27.26x.
Disclaimer
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