Zoom Communications Inc. (ZM) shares jumped more than 10% in Tuesday trading after the company delivered what analysts are calling a decisive beat-and-raise quarter. The video communications company reported third-quarter earnings that exceeded expectations across the board, and management promptly boosted their revenue outlook for the year.

Wall Street is taking notice. Needham analyst Joshua Reilly maintained his Buy rating with a $100 price target, while Rosenblatt Securities analyst Catharine Trebnick kept her Buy rating with a $115 target intact.

What's Driving the Momentum

According to Reilly, the revenue and earnings beat wasn't just luck—it reflected solid performance across both online and enterprise segments, with strength balanced across products and geographies. Management raised their fiscal 2026 revenue guidance to a range of $4,852-$4,857 million, up from the previous $4,825-$4,835 million projection.

Reilly believes Zoom is positioned to beat current fiscal 2027 estimates, driven by AI product cross-selling, ongoing market share gains in customer experience and phone services, plus stabilizing churn rates for enterprise workplace seats.

Trebnick went further, calling the quarter a "clean sweep" that should "silence the skeptics." She views the results as validation of Zoom's structural transformation from a simple meeting app into an AI-first work platform. The company also authorized a new $1 billion buyback program, signaling management's confidence.

With the core business stabilizing and the AI and customer experience growth engines "firing on all cylinders," Trebnick described Zoom as offering "a rare combination of deep value and highly profitable growth."

Shares of Zoom Communications rose 10.08% to $86.52 on Tuesday.