Is Legal Scrutiny and New Partnerships Changing the Investment Case for Zoom (ZM)?

• In October 2025, multiple law firms announced investigations into Zoom Communications for potential securities law violations, while Jabra and NUSO revealed new partnerships and certifications, enhancing Zoom’s product capabilities for frontline and enterprise users.
• This mix of legal scrutiny and product advancements spotlights growing pressure on Zoom's disclosures and transparency alongside ongoing efforts to broaden its enterprise market reach with AI-driven, compliance-ready solutions.
• We'll examine how these legal challenges and strengthened enterprise integration partnerships could influence Zoom Communications' investment narrative going forward.

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Zoom Communications Investment Narrative Recap

To be a Zoom shareholder, you need to believe that demand for its AI-first unified communications platform will keep expanding among large enterprises, driven by successful product innovation and integration. While the October 2025 legal investigations add near-term questions about disclosure practices, they do not materially affect the main catalyst, enterprise growth via AI-powered offerings, nor do they change the biggest risk: intensifying competition from bundled platform providers may continue to challenge Zoom’s ability to sustain revenue momentum and pricing power.

The expanded NUSO partnership, making NUSO a global partner for Zoom Phone and Contact Center, is especially relevant as it strengthens Zoom’s reach and credibility among multinational clients needing compliant, resilient, cloud-based telephony. This move reinforces Zoom’s pursuit of higher enterprise adoption and recurring revenues, underlining how integrations with third-party providers directly support its most important growth goals, while underscoring the critical importance of maintaining customer trust and regulatory compliance.

By contrast, it’s worth noting that ongoing legal scrutiny surrounding Zoom’s disclosures remains an issue investors should be aware of if they are considering...

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 is based on a 3.4% annual revenue growth rate, with earnings expected to remain flat compared to the current level of $1.2 billion.

Uncover how Zoom Communications' forecasts yield a $92.30 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community contributors offered eight fair value estimates for Zoom, ranging from US$72.97 to US$116.46, reflecting broad differences in expectations. With competition among integrated platform vendors still looming as the lead risk, your own view on Zoom’s long-term traction within enterprises could tip your assessment either way.

Explore 8 other fair value estimates on Zoom Communications - why the stock might be worth 11% less 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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