Zoom Delivers Beat-And-Raise Quarter; AI/CX Growth Engines Are 'Firing On All Cylinders,' Analysts Say

Shares of Zoom Communications Inc (NASDAQ:ZM) climbed in early trading on Tuesday, after the company reported upbeat third-quarter earnings.

Here are some key analyst takeaways:

• Needham analyst Joshua Reilly maintained a Buy rating and price target of $100.
• Rosenblatt Securities analyst Catharine Trebnick reiterated a Buy rating and price target of $115.

Check out other analyst stock ratings.

Needham: Zoom’s revenue and earnings came in higher than expected, Reilly said in a note. "The beat was driven by solid results in both Online and Enterprise including balance across products and geos," he wrote.

Management raised their fiscal 2026 revenue guidance to $4,852-$4,857 million, from their prior projection of $4,825-$4,835 million, the analyst stated. The company seems poised to beat the current estimates for fiscal 2027, "driven by AI cross-sell including indirect monetization, ongoing share gains in CX and Phone along with stabilizing churn in Workplace Enterprise seats," he further stated.

Rosenblatt Securities: Zoom's third-quarter beat was a “clean sweep” and should "silence the skeptics," Trebnick said. The beat-and-raise quarter was a "validation of the company's structural pivot from a meeting app to an AI-first work platform," she added.

The company announced a new buyback authorization of $1 billion, the analyst stated. With Zoom's core business stabilizing and the AI/ CX growth engines "firing on all cylinders," the stock represents "a rare combination of deep value and highly profitable growth," she further wrote.

ZM Price Action: Shares of Zoom Communications had risen by 10.08% to $86.52 at the time of publication on Tuesday.

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