How Gartner Recognition and AI Innovation at Zoom (ZM) Has Changed Its Investment Story

• In recent days, Zoom Communications was recognized for the sixth consecutive year as a Leader in the 2025 Gartner Magic Quadrant for Unified Communications as a Service, while continuing to innovate in AI with its AI Companion 3.0 and advancing enterprise adoption across communication and telehealth solutions.
• This recognition highlights Zoom's ongoing leadership in unified communications and signals that its AI-first platform is receiving industry and analyst validation as it approaches its next earnings release.
• Now, we'll explore how this renewed industry leadership and AI innovation could influence Zoom Communications' long-term investment narrative.

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Zoom Communications Investment Narrative Recap

To be a shareholder in Zoom Communications today, an investor needs to believe in the company’s ability to expand its AI-powered unified communications platform beyond core video meetings, while driving sustained enterprise adoption and diversifying revenue streams. The recent Gartner recognition bolsters Zoom’s brand and validates its AI-first approach, but the upcoming earnings release remains the most important near-term catalyst, with the biggest risk still centered on monetizing new AI features amid intensifying competition; neither is markedly altered by the latest news event.

Among recent developments, the unveiling of AI Companion 3.0 stands out, as it integrates advanced AI across Zoom’s platform to improve user experience and streamline workflows for enterprise clients. This innovation directly aligns with key business catalysts around product differentiation and is expected to play a crucial role in attracting larger contracts and supporting revenue growth in the near future.

However, in contrast to Zoom’s strong product innovation, investors should be aware that increasing pressure from bundled competitors could...

Read the full narrative on Zoom Communications (it's free!)

Zoom Communications' outlook anticipates $5.3 billion in revenue and $1.2 billion in earnings by 2028. This scenario calls for 3.4% annual revenue growth, with earnings remaining flat at $1.2 billion compared to current levels.

Uncover how Zoom Communications' forecasts yield a $92.30 fair value, a 12% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community contributed 8 individual fair value estimates for Zoom, ranging from US$90 to US$115.64 per share. With many participants, opinions sharply contrast with the ongoing risk that rivals may limit Zoom’s pricing power and revenue growth.

Explore 8 other fair value estimates on Zoom Communications - why the stock might be worth as much as 41% more than the current price!

Build Your Own Zoom Communications Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zoom Communications research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Zoom Communications research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zoom Communications' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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