Zoom Video (ZM) Stock Forecast & Price Target

Zoom Communications is positioned well because enterprise demand is driving the business, with F2Q27 revenue of $1,277.2M rising 4.9% y/y and enterprise revenue up 7.8% y/y to 62% of total revenue, while customer quality improved as >$100k TTM customers increased 8.2% y/y to 4,625 and enterprise net dollar expansion held at 99%. Its outlook is further supported by durable recurring demand signals, including deferred revenue up 6% y/y to $1.56B, RPO up 14% y/y to $4.5B, and Zoom Workplace AI feature usage up 125% y/y, showing that AI monetization and product diversification are broadening engagement beyond legacy meetings. Management’s raised FY27 guidance reinforces confidence, as non-GAAP EPS was increased to $6.08-$6.12, revenue to $5.085B-$5.095B, and free cash flow to $1.780B-$1.820B, while disciplined pricing, record-low discounting, and a federated AI model should help preserve high profitability and support longer-term growth.

Zoom Communications is facing a mixed but ultimately fragile fundamental backdrop, where stronger enterprise revenue growth of 7.8% y/y and RPO of $4.5B are being offset by only about 4.5% y/y total revenue growth and a decelerating Online business. The company’s AI momentum is real, with licensed monthly active users up 125% y/y and Zoom Virtual Agent customers up more than 250% y/y, but those gains are already pressuring margins through higher AI-related costs, helping drive non-GAAP gross margin down to 79.1% and keeping non-GAAP operating margin below expectations at 40.0%. With valuation still demanding high growth and profitability, plus intensifying competition, product-interoperability risk, security risk, and management execution concerns, the stock’s setup remains vulnerable if momentum in the core business does not broaden beyond enterprise.