From Nasdaq: 2025-05-30 11:40:00

Zoom Communications, Inc. (ZM) shares have outperformed the Computer and Technology sector and S&P 500 index, with a 7.6% gain in the last three months. The company’s AI-driven innovation and platform expansion are driving growth in enterprise workflows, boosting investor confidence in its future prospects.

Zoom is leveraging AI technology to stay ahead of competitors like Cisco Webex, Microsoft Teams, and Google Workspace. The company’s focus on AI-powered tools, including the Zoom AI Companion, is driving adoption and enhancing customer value, positioning Zoom as a leader in the market.

Zoom’s enterprise segment saw strong growth in the fiscal first quarter, with enterprise revenues up 6% year over year. Major wins, like the Boston Celtics upgrading to Zoom Workplace Enterprise Plus, highlight the platform’s appeal to large organizations. This momentum signals potential upside for Zoom’s stock in the future.

For the second quarter of fiscal 2026, Zoom expects total revenues between $1.195 billion and $1.2 billion, with non-GAAP diluted earnings per share between $1.36 and $1.37. Analysts forecast a 2.96% year-over-year growth in revenues, with ZM beating earnings estimates in the past four quarters. This positive guidance is driving investor interest in the stock.

Zoom’s strong performance and AI-first approach make it an attractive investment opportunity. With a Zacks Rank #2 (Buy), Zoom’s continued platform expansion and enterprise growth position it for success in the competitive market. Investors looking for growth potential may find Zoom Communications, Inc. a compelling choice for their portfolios.



Read more at Nasdaq: Zoom Rises 8% in 3 Months: Here’s Why You Should Buy the Stock Now