The company’s innovative AI offerings and focus on vertical-specific solutions create multiple growth vectors. The upcoming launch of Custom AI Companion and AI Companion Studio in early 2025 positions Zoom to capture additional revenue through enterprise customization and industry-specific solutions. By focusing on healthcare, education and frontline worker verticals through specialized AI offerings, Zoom is substantially expanding its addressable market while creating deeper relationships with customers. The Zacks Consensus Estimate for fiscal 2025 indicates 2.87% year-over-year revenue growth to $4.66 billion.
Plus the zoom out option is only available to undo a previous zoom in operation. Heading into today, shares of the video-conferencing company had gained 6.48% over the past month, outpacing the Computer and Technology sector’s gain of 5.49% and the S&P 500’s gain of 2.12%. Looking ahead, Zoom’s strategic initiatives revolve around becoming an AI-first company, with a focus on its AI Companion tool, which is driving increased productivity for customers. While there were plenty of early investors in Zoom, many first started paying attention when Accumulation distribution indicator witnessing its explosive streak of growth with the onset of the COVID-19 pandemic. Zoom was the fifth-most-downloaded app in 2020 and experienced 30x growth in daily meeting participants between December 2019 and April 2020. Early on in its business journey, the company raised $3 million in seed money from venture capitalists and various company leaders, including the founder of WebEx.
Zoom’s AI strategy is gaining impressive momentum with AI Companion 2.0, which saw monthly active users surge 59% quarter over quarter. Zoom Video Communications ZM has emerged as one of the strongest performers with its stock rallying 36.3% in the past six months compared with the broader Zacks Computer and Technology sector’s growth of 12.3%. Despite this impressive rally, several fundamental catalysts and strategic initiatives suggest the stock has significant upside potential ahead as the company transforms into an AI-first platform for workplace collaboration. Analysts and investors alike will be keeping a close eye on the performance of Zoom Communications in its upcoming earnings disclosure. The company’s earnings report is set to go public on November 24, 2025.
Stocks Mentioned
In the spring of 2012, the company relaunched as Zoom, and by September of that year, it had introduced a beta version of its software that could host conferences with as many as 15 participants. In 2013, Zoom officially released Zoom Meetings to the public after raising $6 million in a Series A round of funding. Zoom Communications is upgraded to a buy, reflecting improved fundamentals and accelerating growth in core and new business segments. Enterprise revenue growth has reaccelerated, online business has s…
- LOS ANGELES , Oct. 16, 2025 /PRNewswire/ — The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Zoom Communications …
- The strong growth in these segments demonstrates Zoom’s ability to successfully expand beyond its core meetings platform.
- By the end of Zoom’s first month in business, it already had close to half a million users; a few months later, that figure was up to 1 million users.
- In the quarter, 4,192 customers contributed more than $100,000 in trailing-12-month revenue, up 8% from the same quarter last fiscal year.
- For investors looking to benefit from the ongoing digital transformation of work and the growing adoption of AI-powered collaboration tools, Zoom stock presents a compelling opportunity despite its recent rally.
Company
ZM reported better-than-expected second-quarter financial results and raised its FY26 guidance above estimates on Thursday. Operational metrics continue to improve, with online monthly churn reaching an all-time low of 2.7%, down from 3% a year ago. The company’s focus on disciplined discounting practices and longer billing terms is driving better customer retention and more predictable revenue streams. Deferred revenues grew 5% year over year to $1.38 billion, indicating healthy future revenue recognition. Over the past month, the Zacks Consensus EPS estimate has moved 1.17% higher. It’s also important for investors to be aware of any recent modifications to analyst estimates for Zoom Communications.
Industry: App
In 2017, Zoom hit a $1 billion valuation after raising $100 million in Series D funding from Sequoia Capital. It also hosted its first annual user conference (Zoomtopia) in 2017 and launched its telehealth platform. I’m Ben, I graduated with a degree in Engineering and Science from the University of Adelaide, Australia. I’ve been actively trading the Futures and Forex markets since 2014. If you don’t have a mouse wheel then this method or method 3 below are your best options.
- Heading into today, shares of the video-conferencing company had gained 6.48% over the past month, outpacing the Computer and Technology sector’s gain of 5.49% and the S&P 500’s gain of 2.12%.
- In the spring of 2012, the company relaunched as Zoom, and by September of that year, it had introduced a beta version of its software that could host conferences with as many as 15 participants.
- Zoom Video Communications ZM has emerged as one of the strongest performers with its stock rallying 36.3% in the past six months compared with the broader Zacks Computer and Technology sector’s growth of 12.3%.
- I’m Ben, I graduated with a degree in Engineering and Science from the University of Adelaide, Australia.
Calls of the Day: Netflix, Parker Hannifin, TKO Group, Zoom Communications, and DoorDash
In the quarter, 4,192 customers contributed more than $100,000 in trailing-12-month revenue, up 8% from the same quarter last fiscal year. The first version of Zoom Meetings allowed up to 25 participants per conference. By the end of Zoom’s first month in business, it already had close to half a million users; a few months later, that figure was up to 1 million users. By September 2013, Zoom raised a Series B round of funding to the tune of $6.5 million and had 3 million daily participants using its meeting software.
Financial Performance
Zoom has been faced with headwinds as growth has normalized in recent years from pandemic heights, and it’s had to slash its workforce. The nice thing about this method is it’s the most precise method for zooming in. The tool allows users to select a specific area of a chart to enlarge. In the first quarter of fiscal year 2026, Zoom’s total revenue was $1.2 billion, a year-over-year increase of about 3%.
The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. Internet — Software stocks are, on average, holding a PEG ratio of 2.04 based on yesterday’s closing prices. The Enterprise customer base continues to expand, with 3,995 customers contributing more than $100,000 in trailing 12-month revenues, up 7.1% year over year. These high-value customers now represent 31% of total revenues, reflecting the successful execution of Zoom’s upmarket strategy.
The Contact Center solution reached a significant milestone by securing its largest-ever deal with more than 20,000 seats in EMEA. The total number of Contact Center customers has surpassed 1,250, representing remarkable 82% year-over-year growth and validating Zoom’s enterprise-grade capabilities. Several factors make Zoom an attractive investment at current levels. First, the successful transition to an AI-first platform positions Zoom to capture the growing enterprise demand for intelligent collaboration solutions.
In that report, analysts expect Zoom Communications to post earnings of $1.43 per share. Simultaneously, our latest consensus estimate expects the revenue to be $1.21 billion, showing a 3% escalation compared to the year-ago quarter. With more than a decade in business under its belt, Zoom is also much more than a software business, although Zoom Meetings remains a core part of the business and a market leader in videoconferencing solutions. Besides products like Zoom Phone and other workplace tools and solutions, its AI investments could drive meaningful growth for the business over the next five to 10 years.
The acquisition of Workvivo is proving highly strategic, with customer count growing 72% year over year and the platform securing multiple million-dollar deals, including its largest with a Fortune 10 company. The exclusive partnership with Meta Platforms META for migrating Workplace customers to Workvivo presents a substantial growth opportunity. While Zoom has fallen out of favor with some investors, the business fundamentals still look good, the company is profitable, and it’s leaning into the potential of AI for its business. That could create a valuable buying proposition for investors looking for a potentially undervalued stock that was once a pandemic favorite, but has plenty of growth opportunity left to explore outside of that time frame. Zoom launched its artificial intelligence (AI)-powered assistant Zoom AI companion in 2023, and a new AI-powered collaboration platform called Zoom Workplace in 2024.
These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. If you don’t want to buy whole shares of Zoom, you may decide to invest in the stock through an exchange-traded fund (ETF). Doing so will also give you the opportunity to invest in a wide range of other stocks contained in that fund, an instant way to diversify your portfolio with a single investment. Several ETFs that feature Zoom as a holding include Fidelity Cloud Computing ETF (FCLD -0.74%), Invesco ESG NASDAQ Next Gen 100 ETF (QQJG -1.28%), and Fidelity Value Factor ETF (FVAL -1.14%). As long as you’re not expecting pandemic-era returns and want to invest in Zoom stock for its more mature business potential, there’s a lot for investors to like about this stock.
Check out my post “Best mouse for day trading‘ where I detail all the things to consider before purchasing a new mouse. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. If you want to buy Zoom stock, you can easily add shares to your portfolio.