Benchmark raises Zoom stock price target to $102, maintains Buy rating

On Thursday, Benchmark analyst Matthew Harrigan increased the price target on Zoom Video (NASDAQ: ZM) shares to $102 from the previous target of $97, while reiterating a Buy rating for the company. According to InvestingPro data, Zoom’s stock is currently trading at $82.27, with analyst targets ranging from $65 to $115, suggesting potential upside from current levels. The adjustment comes after Zoom slightly surpassed its first-quarter fiscal year 2026 guidance and raised its constant currency revenue forecast for the full year by $15 million. This update follows a quarter in which Zoom’s revenue exceeded expectations by $8 million and factored in a $10-15 million benefit from higher pricing for monthly Pro customers.

Zoom’s performance indicates a modest upward revision in estimates, despite acknowledging a slight decrease in the prior forecast for Enterprise sales. The company attributes this adjustment to a challenging and uncertain macroeconomic environment, which has become a key area of focus. InvestingPro analysis shows Zoom maintains impressive gross profit margins of 76% and appears undervalued based on their proprietary Fair Value model. InvestingPro subscribers have access to 8 additional key insights about Zoom’s financial health and growth prospects. The revised guidance also reflects Zoom’s ability to adapt its pricing strategy to enhance its Online segment’s profitability.

With a strong financial foundation, including a current ratio of 4.56 and minimal debt, Zoom continues to invest in innovation. In an innovative move, Zoom’s CEO Eric Yuan presented his introductory comments on the company’s earnings call using a highly realistic avatar. The avatar’s quality was likened to the simulated Na’vi humanoids in James Cameron’s science fiction blockbuster. This demonstration not only showcased Zoom’s technological capabilities but also underscored the company’s commitment to privacy and security. Benchmark anticipates that within a year, advancements in Zoom’s technology will make the CEO’s avatar indistinguishable from the real Eric Yuan, emphasizing the need for customer-specific approval levels for AI integration.

Zoom’s latest financial results and the subsequent price target increase reflect the company’s ongoing efforts to navigate a complex economic landscape while continuing to innovate in the video communications industry. The company’s financial health score of "GREAT" on InvestingPro, along with its PEG ratio of 0.45, suggests strong value potential relative to its growth prospects. Detailed analysis and comprehensive insights are available in InvestingPro’s exclusive Research Report, part of their coverage of over 1,400 US stocks. The company’s emphasis on enhancing user experience through advanced technology, while maintaining strong privacy and security standards, remains a cornerstone of its strategy moving forward.

In other recent news, Zoom Video Communications (NASDAQ:ZM) Inc. reported a quarterly revenue of $1,174.7 million, reflecting a 2.9% year-over-year increase, surpassing consensus estimates of $1,166.3 million. Earnings per share (EPS) came in at $1.43, exceeding projections of $1.31. The company also announced a slight upward revision of its full-year 2026 constant currency revenue guidance, with a $15 million increase primarily attributed to a price hike for Online Pro subscriptions. Meanwhile, Piper Sandler raised Zoom’s stock price target to $85, maintaining a Neutral rating, citing traction in newer products like CX and Phone. Stifel also held a consistent price target of $85, noting stable trends despite longer sales cycles among large U.S. customers. Bernstein maintained a Market Perform rating with an $89 price target, while BofA Securities adjusted its target to $84, reflecting cautious optimism about Zoom’s Enterprise segment. Evercore ISI reaffirmed its Outperform rating with a $115 target, highlighting robust growth in Zoom’s contact center business, which is expanding at a 60% year-over-year rate.

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