RBC Capital Raises PT on Zoom Communications to $100, Maintains Outperform Rating

RBC Capital lifted Zoom Communications' price target to $100 from $95 and maintained an Outperform rating. The firm praised the company's strong Q2 results, exceeding expectations, and raised its fiscal year 2026 guidance. Zoom Communications provides a communications and collaboration platform with AI capabilities, and the firm highlighted traction with stable net retention rates, AI products, and accelerating $100K+ customer growth.

Title: RBC Capital Raises Price Target for Zoom Communications

RBC Capital has lifted its price target for Zoom Communications (NASDAQ: ZM) to $100 from $95 while maintaining an Outperform rating. The firm's decision follows Zoom's strong second-quarter (Q2) results, which exceeded market expectations. According to RBC Capital, Zoom's Q2 revenue grew by 4.7% year-over-year (YoY), or 4.4% on a constant currency basis, supported by impressive gross profit margins of 76.4% and a "GREAT" financial health score [1].

Zoom's Q2 results were driven by significant traction with AI products, stable net revenue retention, and accelerating growth in customers spending over $100,000. The company's fiscal year 2026 guidance was raised across all metrics, coming in above consensus expectations. RBC Capital highlighted the company's Contact Center as a Service (CCaaS) business and AI capabilities as key drivers of growth [1].

In addition to RBC Capital's positive outlook, other analysts have also revised their price targets and ratings for Zoom. Rosenblatt Securities analyst Catharine Trebnick raised her price target to $110, while Needham analyst Joshua Reilly maintained a Buy rating with a $100 price target [2]. Despite these positive signals, KeyBanc Capital Markets analyst Jackson Ader reduced his price target to $69, maintaining an Underweight rating [2].

Zoom's strong performance is reflected in its stock price, which has seen significant gains. Shares of Zoom Communications rose by 10.45% to $80.82 following the Q2 earnings release [2]. The company's free cash flow exceeded expectations by 29%, highlighting its continued financial strength and operational efficiency.

RBC Capital's optimism about Zoom's growth strategy is supported by the company's long-term gross margin target of 80% and its Virtual Agent 2.0 product, which has already secured significant deals [2]. The company's enterprise segment is expected to continue accelerating in the second half of the year, setting up Zoom for further revenue growth.

References:
[1] https://www.investing.com/news/analyst-ratings/zoom-stock-price-target-raised-to-100-by-rbc-on-solid-q2-results-93CH-4206348
[2] https://www.benzinga.com/markets/tech/25/08/47289493/zoom-boasts-11-quarter-growth-streak-raises-2026-guidance