Zoom Communications, Inc. (ZM) Sees $88 Target as FY26 Pricing Tailwinds Emerge
Zoom Communications, Inc. (NASDAQ:ZM) is among the 11 Best Low Priced Growth Stocks to Buy Right Now.
On February 26, Bernstein lowered its price target on Zoom Communications, Inc. (NASDAQ:ZM) to $88 from $90 and maintained a Market Perform rating. The firm noted that Q4 marked Zoom’s third consecutive beat of more than 1% versus midpoint guidance, signaling improved operating consistency. Performance was supported by stabilization in the online segment, 2.9% monthly churn, and an estimated $15 million FY26 revenue lift from last June’s price increase, with an additional annual SKU price adjustment set to roll out in mid-March.
Also on February 26, BTIG trimmed its price target on Zoom Communications, Inc. (NASDAQ:ZM) to $100 from $105 while reiterating a Buy rating. The firm highlighted accelerating Enterprise revenue growth and guidance that supports its view of approximately 5% revenue growth in FY27.
Previously, Zoom Communications, Inc. (NASDAQ:ZM) reported Q4 FY26 revenue of $1.25 billion, up 5.3% year-over-year (4.8% in constant currency) and $12 million above the high end of guidance. FY26 revenue grew 4.4%, representing a 130 basis point acceleration versus FY25, with FY27 revenue expected to exceed $5.06 billion at the midpoint (~4.1% YoY growth). FY26 free cash flow increased 6.4% to $1.9 billion. Under its $3.7 billion share repurchase authorization, Zoom bought back 3.8 million shares for approximately $324 million in Q4 and 36.3 million shares for roughly $2.7 billion year-to-date, with management intending to at least offset dilution through ongoing repurchases.
Zoom Communications, Inc. (NASDAQ:ZM), founded in 2011 and headquartered in San Jose, California, provides enterprise and consumer communications technology solutions, offering a unified platform spanning meetings, phone, contact center, and collaboration tools.
While we acknowledge the potential of ZM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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