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Investing.com - Bernstein maintained its Market Perform rating and $89.00 price target on Zoom Video (NASDAQ:ZM) following the company’s fiscal second-quarter 2026 earnings report. According to InvestingPro analysis, Zoom is currently trading below its Fair Value, suggesting potential upside opportunity.
The video communications company delivered its largest earnings beat versus mid-point in two years, exceeding expectations by 1.6% (and 1.3% in constant currency). Zoom reported a constant currency growth rate of 4.4% year-over-year for the quarter. The company maintains impressive gross profit margins of 76.4%, with 22 analysts recently revising their earnings expectations upward, according to InvestingPro data.
Zoom provided guidance indicating growth will slow to approximately 3% by year-end, continuing its pattern of modest but steady expansion in a competitive market.
Bernstein noted positive developments in Zoom’s customer retention, reporting that enterprise churn rates have declined every quarter for over a year, while the online segment primarily serving consumers and small home offices has reached stability.
The research firm suggested these stabilizing metrics could be viewed positively given concerns that Zoom might gradually lose customers to competitors offering free services, particularly Microsoft (NASDAQ:MSFT) Teams in the enterprise market.
In other recent news, Zoom Video reported its second-quarter results, showcasing a revenue growth of 4.7% year-over-year, surpassing the consensus estimate of 3.1%. The company also achieved an operating margin of 41.3%, significantly higher than the expected 38.7%. Zoom’s performance led to various analyst reactions, with Needham reiterating a Buy rating and setting a price target of $100, highlighting the company’s largest quarterly outperformance in several years. Mizuho (NYSE:MFG) also maintained an Outperform rating with a $95 target, following these strong results. Meanwhile, RBC Capital raised its price target to $100, citing the solid Q2 results that exceeded expectations across all metrics. On the other hand, Stifel lowered its price target to $80, maintaining a Hold rating, noting the company’s progress in AI-powered tools and a 94% growth in customers with significant annual recurring revenue. Goldman Sachs maintained a Neutral rating with an $87 target, emphasizing the 4.7% revenue growth and the company’s 41% non-GAAP operating margin. These developments reflect varied analyst perspectives on Zoom’s recent performance and future potential.
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