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Analysts Lift Price Targets After Zoom's Strong Q3 Beat

MarketDash Editorial Team
12 days ago
Zoom Communications topped Wall Street estimates across the board in its third quarter and raised full-year guidance, prompting analysts to boost their price targets. Shares surged nearly 14% as the company continues building its AI-first platform vision.

Zoom Communications Inc. (ZM) reminded investors Monday that life after the pandemic boom doesn't have to mean decline. The video communications company delivered third-quarter results that beat expectations on both the top and bottom lines, and then sweetened the deal by raising its full-year outlook.

The numbers tell a pretty straightforward story. Zoom posted revenue of $1.23 billion for the quarter, comfortably ahead of the $1.21 billion Wall Street was expecting. Adjusted earnings came in at $1.52 per share, topping analyst estimates of $1.44 per share. Not bad for a company many had written off as a pandemic darling past its prime.

"Zoom is continuing to build on our vision of an AI‑first platform that helps people connect and collaborate more seamlessly," said Eric Yuan, founder and CEO of Zoom. It's the kind of statement that reflects where the company sees its future—less about emergency remote work solutions, more about becoming an integrated collaboration platform powered by artificial intelligence.

Looking ahead, Zoom expects fourth-quarter revenue between $1.23 billion and $1.235 billion versus estimates of $1.228 billion. Fourth-quarter adjusted earnings should land between $1.48 and $1.49 per share, above the $1.45 per share analysts were modeling.

The real confidence showed up in the full-year guidance. Zoom now expects fiscal 2026 revenue of $4.852 billion to $4.857 billion, up from prior guidance of $4.825 billion to $4.835 billion. Analysts had been looking for $4.834 billion. The company also raised its full-year adjusted earnings outlook from $5.81-$5.84 per share to $5.95-$5.97 per share, compared to the Street's $5.88 estimate.

The market liked what it saw. Zoom shares jumped 13.7% to $89.37 on Tuesday, the kind of move that makes you wonder if maybe the stock had been oversold heading into the print.

Analysts were quick to respond, though their enthusiasm remained measured. Meta Marshall at Morgan Stanley maintained an Equal-Weight rating on Zoom Communications but raised her price target from $85 to $92. Over at JP Morgan, analyst Mark Murphy kept his Neutral rating while bumping his target from $85 to $90. Both moves acknowledge the improved outlook without exactly declaring Zoom a must-own growth story. Sometimes a solid quarter is just a solid quarter.

Back to News

Analysts Lift Price Targets After Zoom's Strong Q3 Beat

MarketDash Editorial Team
12 days ago
Zoom Communications topped Wall Street estimates across the board in its third quarter and raised full-year guidance, prompting analysts to boost their price targets. Shares surged nearly 14% as the company continues building its AI-first platform vision.

Zoom Communications Inc. (ZM) reminded investors Monday that life after the pandemic boom doesn't have to mean decline. The video communications company delivered third-quarter results that beat expectations on both the top and bottom lines, and then sweetened the deal by raising its full-year outlook.

The numbers tell a pretty straightforward story. Zoom posted revenue of $1.23 billion for the quarter, comfortably ahead of the $1.21 billion Wall Street was expecting. Adjusted earnings came in at $1.52 per share, topping analyst estimates of $1.44 per share. Not bad for a company many had written off as a pandemic darling past its prime.

"Zoom is continuing to build on our vision of an AI‑first platform that helps people connect and collaborate more seamlessly," said Eric Yuan, founder and CEO of Zoom. It's the kind of statement that reflects where the company sees its future—less about emergency remote work solutions, more about becoming an integrated collaboration platform powered by artificial intelligence.

Looking ahead, Zoom expects fourth-quarter revenue between $1.23 billion and $1.235 billion versus estimates of $1.228 billion. Fourth-quarter adjusted earnings should land between $1.48 and $1.49 per share, above the $1.45 per share analysts were modeling.

The real confidence showed up in the full-year guidance. Zoom now expects fiscal 2026 revenue of $4.852 billion to $4.857 billion, up from prior guidance of $4.825 billion to $4.835 billion. Analysts had been looking for $4.834 billion. The company also raised its full-year adjusted earnings outlook from $5.81-$5.84 per share to $5.95-$5.97 per share, compared to the Street's $5.88 estimate.

The market liked what it saw. Zoom shares jumped 13.7% to $89.37 on Tuesday, the kind of move that makes you wonder if maybe the stock had been oversold heading into the print.

Analysts were quick to respond, though their enthusiasm remained measured. Meta Marshall at Morgan Stanley maintained an Equal-Weight rating on Zoom Communications but raised her price target from $85 to $92. Over at JP Morgan, analyst Mark Murphy kept his Neutral rating while bumping his target from $85 to $90. Both moves acknowledge the improved outlook without exactly declaring Zoom a must-own growth story. Sometimes a solid quarter is just a solid quarter.

    Analysts Lift Price Targets After Zoom's Strong Q3 Beat - MarketDash News