Zoom's strong growth driven by AI integration positions it as a promising investment option

From Nasdaq: 2025-04-04 10:42:00

Zoom Communications, Inc. (ZM) shares have outperformed the Computer and Technology sector and S&P 500 index, with a 16.4% gain in the past 12 months. The successful launch of Zoom AI Companion has driven growth, with monthly active users up by 68% in Q4 of fiscal 2025, solidifying Zoom’s position as an AI-first company.

Despite competition from providers like Cisco Systems (CSCO), Microsoft (MSFT), and Alphabet (GOOGL), Zoom continues to lead in video conferencing. Zoom’s expansion into AI-powered solutions like Workvivo AI sets it apart, boosting productivity and customer loyalty. Zoom’s strong financial position and innovative approach make it a promising investment option.

Zoom forecasts non-GAAP earnings per share of $1.29-$1.31 and revenues of $1.162-$1.167 billion in Q1 fiscal 2026. With a Zacks Rank #2 (Buy), Zoom’s continuous innovation and strategic expansion, especially in AI integration, position it well for future growth. The company’s tailored solutions across communication and workflow management are expected to drive customer adoption and long-term success.



Read more at Nasdaq: Is Zoom’s Expanding AI Integration a Sign to Buy the Stock Now?