
Zoom Video (ZM) Stock Forecast & Price Target
Zoom Video (ZM) Analyst Ratings
Bulls say
Zoom Communications demonstrates robust growth potential, with projected revenue increasing to $5,339 million for FY28, reflecting a year-over-year growth rate of 5.3% driven by its "system of action" strategy. Additionally, the company expects to achieve significant margin expansion to 41.0%, resulting in a projected pro forma earnings per share (EPS) of $6.18. The strong performance in the fourth quarter, marked by a 5.3% year-over-year revenue increase to $1,247 million and notable growth in its Enterprise business, underscores Zoom's resilience and leadership within the video communications sector.
Bears say
Zoom Communications is experiencing a decline in key financial metrics, highlighted by a sequential decrease in gross margins to 79.8% and a forecasted free cash flow margin of 34% for FY27, which falls short of the consensus estimate of 39%. The company is facing significant execution risks related to its internal sales culture and the integration of AI investments, which could hinder growth prospects and adversely affect investor sentiment. Additionally, a projected decrease in operating margins, alongside higher non-operating expenses and tax burdens, further complicates the firm's financial outlook.
This aggregate rating is based on analysts' research of Zoom Video and is not a guaranteed prediction by Public.com or investment advice.
Zoom Video (ZM) Analyst Forecast & Price Prediction
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