Zoom Communications in focus as Oppenheimer upgrades to Outperform (ZM:NASDAQ)

Oppenheimer upgraded Zoom Video (ZM) to Outperform with a $130 target, citing strong AI platform traction. Analysts noted impressive new services and growing customer uptake. ZM shares rose 4% premarket. The company aims for 6-8% revenue growth by fiscal 2030, supported by enterprise growth and AI-driven products.

Rosenblatt kept a Buy rating on Zoom Communications with a $130 price target, implying 33.4% upside from the Oct 20 close. The company has $7.2B in net cash and a 35-36% free cash flow margin. Zoom's focus on enterprise and CX solutions is driving market share gains and revenue growth.

Oppenheimer upgraded Zoom Video Communications (ZM) to Outperform with a $130 price target, citing progress in AI platform and new services. The stock is currently trading at $97.46, with a Fair Value of $124.60 according to InvestingPro. Other analysts have also commented on Zoom's AI integration and growth potential.

Zoom Communications (ZM) targets 6%-8% growth by 2030, focusing on AI integration. The company reported 7.5% enterprise growth, with AI adoption reducing churn. Zoom has authorized $4.7B in share repurchases, executing $3.4B. AI-related products and services are driving growth, with Contact Center AI business growing in the mid-100s.

Zoom Communications reported Q2FY27 revenue of $1.28 billion, up 4.9% YoY, with enterprise revenue growing 7.8%. Non-GAAP EPS rose to $1.55. The company raised full-year revenue guidance to $5.09 billion, citing AI momentum. Operating margins contracted to 40% due to AI investment costs.

Pegasystems (NASDAQ:PEGA) reported Q2 revenue of $420.7M, up 9.4% YoY, missing estimates by 1.5%. ServiceNow (NYSE:NOW) reported $3.99B revenue, up 24% YoY, beating estimates. Zoom (NASDAQ:ZM) reported $1.28B revenue, up 4.9% YoY, with mixed results. Stocks reacted accordingly, with NOW up 38.3%, PEGA up 17.1%, and ZM down 5.1%.