Zoom's AI-Powered Earnings Surge Fizzles as Analysts Split, Trading Volume Ranks 401st

On August 28, 2025, Zoom Communications (ZM) closed down 0.16% at $80.52, with a trading volume of $240 million, ranking 401st in market activity. The stock’s recent performance followed a 12.7% surge post-earnings on August 21, driven by a Q2 fiscal 2026 earnings beat and raised full-year guidance. Enterprise revenue grew 7% year-over-year to $730.7 million, supported by AI-driven tools like Virtual Agent 2.0 and Custom AI Companion. CEO Eric Yuan emphasized AI’s role in redefining collaboration, aligning with the company’s strategic focus on productivity-enhancing innovations.

Analysts responded with mixed signals. Rosenblatt and RBC Capital upgraded price targets to $110 and $100, respectively, citing strong revenue growth and AI monetization potential. However, KeyBanc cut its target to $69, reflecting sector-wide valuation concerns. Zoom’s forward P/E of 24x and raised fiscal 2026 guidance—projecting $4.825–$4.835 billion in revenue—highlighted its growth trajectory amid competitive AI-driven platform expansion.

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