A Look at Zoom (ZM) Valuation Following Robust Earnings, Upgraded Guidance, and AI Growth Initiatives

Simply Wall St.12-01

Zoom Communications (ZM) delivered a strong quarterly update, reporting higher revenue and net income compared to last year. The company also raised its outlook for fiscal 2026, citing momentum from ...

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The company also raised its outlook for fiscal 2026, citing momentum from ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/a-look-at-zoom-zm-valuation-following-robust-earnings-upgrad\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look at Zoom (ZM) Valuation Following Robust Earnings, Upgraded Guidance, and AI Growth Initiatives</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look at Zoom (ZM) Valuation Following Robust Earnings, Upgraded Guidance, and AI Growth Initiatives\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-01 20:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/a-look-at-zoom-zm-valuation-following-robust-earnings-upgrad><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Zoom Communications (ZM) delivered a strong quarterly update, reporting higher revenue and net income compared to last year. The company also raised its outlook for fiscal 2026, citing momentum from ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/a-look-at-zoom-zm-valuation-following-robust-earnings-upgrad\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ZM","symbol_name":"Zoom","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/a-look-at-zoom-zm-valuation-following-robust-earnings-upgrad","article_id":"2588779206","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8041000-choice2-main-header/1585186556238"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nasdaq-zm/zoom-communications/news/a-look-at-zoom-zm-valuation-following-robust-earnings-upgrad","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2588779206","pubTimestamp":1764591245,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Zoom Communications (ZM) delivered a strong quarterly update, reporting higher revenue and net income compared to last year. The company also raised its outlook for fiscal 2026, citing momentum from AI initiatives and share buybacks.\nSee our latest analysis for Zoom Communications.\nZoom’s upbeat earnings and improved guidance have quickly shifted investor sentiment, sending its share price higher in the short term. While last year’s total shareholder return was 2.2%, momentum is picking up...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["rate","earning"],"viewcount":null,"language":"en","relate_stocks":{"ZM":"Zoom"},"translate_title":"在强劲的盈利、升级的指引和人工智能增长计划之后，看看Zoom(ZM)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ZM":1.5},"content_text":"Zoom Communications (ZM) delivered a strong quarterly update, reporting higher revenue and net income compared to last year. The company also raised its outlook for fiscal 2026, citing momentum from AI initiatives and share buybacks. See our latest analysis for Zoom Communications. Zoom’s upbeat earnings and improved guidance have quickly shifted investor sentiment, sending its share price higher in the short term. While last year’s total shareholder return was 2.2%, momentum is picking up following a bumpy few years and a hefty buyback program. Tech optimism and fresh product releases are also reworking the narrative around long-term growth. If Zoom’s turnaround has you reevaluating your strategy, this is the perfect time to broaden your search and discover fast growing stocks with high insider ownership With a sizeable discount to analysts' price targets and new records in profitability, is Zoom still undervalued, or is the recent surge already reflecting expectations for future growth and innovation? AdvertisementMost Popular Narrative: 10.2% Undervalued With Zoom closing at $84.96 and the narrative's fair value at $94.58 per share, valuation watchers have reason to look twice. The most popular narrative blends recent earnings momentum with future investment potential, drawing attention to key trends driving the business forward.  Strong and accelerating adoption of AI-powered features such as AI Companion, Virtual Agent 2.0, and Contact Center Elite demonstrates growing customer reliance on advanced collaboration and productivity tools. This positions Zoom at the forefront of enterprise digital transformation. This is likely to expand the addressable market, drive multi-year revenue growth, and increase recurring revenue stability.  Read the complete narrative. What’s fueling this bold price estimate? The real story lies beneath the headline—surprising assumptions about revenue momentum, sticky margins, and a profit outlook that sets Zoom apart from its industry peers. Want to see what really powers this forecast and why it’s sparking debate? Only the full narrative reveals the pivotal numbers behind the projected valuation. Result: Fair Value of $94.58 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, persistent competition from tech giants and uncertainty around monetizing new AI features could challenge Zoom’s path to sustained and above-market growth. Find out about the key risks to this Zoom Communications narrative.  Build Your Own Zoom Communications Narrative If you have a different perspective or want to dive deeper into the numbers yourself, you can quickly craft your own narrative in just a few minutes. Do it your way A great starting point for your Zoom Communications research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? Don’t watch growth stories unfold from the sidelines when smart opportunities are just a click away. Maximize your investment edge with handpicked stock ideas that fit a variety of strategies.  Access tomorrow’s potential blue chips before the crowd by checking out these 3556 penny stocks with strong financials, which are flying below the radar but boast solid financials. Fuel your search for high-yield opportunities and lock in greater income now with these 15 dividend stocks with yields > 3%, which offers reliable returns above 3%. Tap into the innovation reshaping medicine by evaluating these 30 healthcare AI stocks, which is leading advancements in healthcare through transformative artificial intelligence solutions.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Zoom Communications might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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