Zoom Communications Inc Raises Revenue Forecast, Stock Rises 7.63%
Written by Emily J. Thompson, Senior Investment Analyst
0mins
Should l Buy ZM?
Source: Newsfilter
Zoom Video Communications, Inc. has announced an increase in its fiscal 2026 revenue forecast to $4.86 billion, up from a previous estimate of $4.84 billion. This adjustment reflects the company's strong growth potential driven by the ongoing hybrid work trends that have emerged in recent years.
In addition to the revenue forecast, Zoom has also enhanced its profit projections, anticipating adjusted earnings per share between $5.95 and $5.97, an increase from the prior range of $5.81 to $5.84. This improvement in profitability expectations has likely contributed to the positive market reaction.
The company is also intensifying its efforts to integrate AI functionalities into its offerings, launching new products such as Phone, Contact Center, and Virtual Agent. These innovations are expected to significantly drive growth, particularly in enhancing customer experience. The partnership with Nvidia further strengthens Zoom's competitive edge in the AI sector, positioning it well for future growth.
As a result of these developments, Zoom's stock price surged by 7.63%, reflecting investor confidence in the company's strategic direction and growth potential.
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Analyst Views on ZM
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 85.00 USD and a high forecast of 115.00 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.
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 89.080
Low
85.00
Averages
99.33
High
115.00
Current: 89.080
Low
85.00
Averages
99.33
High
115.00
About ZM
Zoom Communications, Inc. provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Company’s AI-powered, open collaboration platform built for modern work, enables us to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion, includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom Docs, Zoom Whiteboard, Zoom Clips, and Zoom Tasks. Its space products include Zoom Rooms, Zoom Workspace Reservation, and Zoom Visitor Management. It serves various industries, including education, financial services, government, retail, manufacturing and healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Digital Sovereignty Push: Tuttle highlights a significant move towards digital sovereignty in Europe, ensuring that core systems and communications cannot be easily disabled if relations with the U.S. deteriorate, which will impact future technology procurement and investment decisions.
- Beneficiary Companies: He identifies several European companies, including OVH Groupe, IONOS, Orange, Deutsche Telekom, and Capgemini, that could benefit from this shift, indicating a market tilt towards local technology solutions.
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