Zoom (ZM) Stock Outlook: Earnings Analysis and Future Predictions

By Anika Shah - Technology Updated September 24, 2026

Zoom Video Communications (NASDAQ: ZM) reported its fiscal second-quarter earnings roughly 30 days ago, beating Wall Street expectations for both revenue and profit while raising its full-year guidance. Investors now look toward upcoming earnings estimates and valuation metrics to determine whether the stock can maintain its momentum following a post-report rally. The company posted revenue of $1.16 billion for the quarter, marking a 2.7% increase year-over-year, alongside non-GAAP diluted earnings per share of $1.39, according to Zoom’s official financial results released on August 21, 2024.

Earnings Estimates and Financial Outlook

For the upcoming third fiscal quarter, analysts tracked by Zacks Investment Research project revenue of approximately $1.16 billion, representing modest growth compared to the same period last year. Consensus estimates peg earnings per share at around $1.29 to $1.30. Zoom management issued full-year fiscal 2025 revenue guidance between $4.63 billion and $4.64 billion, with non-GAAP income from operations expected to be roughly $1.76 billion. These projections reflect stability in Zoom’s core enterprise business, offsetting slower growth in its online individual subscriber segment.

Enterprise Growth Versus Online Segment

Zoom’s path forward heavily relies on expanding its enterprise customer base rather than relying solely on consumer video calls. During the second-quarter report, the company noted it had 3,933 customers contributing more than $100,000 in trailing 12-month revenue, representing a 7.1% increase year-over-year. Enterprise revenue grew 7.1% to $683 million, while the online segment remained essentially flat at $478 million. This shift demonstrates management’s success in converting free users and small businesses into paying enterprise clients tied into broader corporate communication suites.

AI Integration and Monetization Strategy

Artificial intelligence features represent a primary driver for enterprise adoption and future stock valuation. Zoom’s AI Companion, included at no additional cost with paid enterprise accounts, has been deployed by hundreds of thousands of companies to summarize meetings, draft chat messages, and organize whiteboards. Unlike competitors who charge separate per-user monthly fees for generative AI tools, Zoom utilizes AI as a retention mechanism to protect its market share against Microsoft Teams and Google Meet. Analysts monitor whether this strategy will eventually translate into direct pricing power or improved upselling metrics for advanced security and contact center products.

Valuation and Market Position

Zoom shares trade at a trailing price-to-earnings ratio significantly lower than its pandemic-era peaks, making it an attractive target for value-oriented technology investors. The company maintains a strong balance sheet with over $7.4 billion in cash, cash equivalents, and marketable securities, alongside zero debt. Management continues to execute a multi-year share repurchase program, buying back stock to return capital to shareholders. Wall Street sentiment remains cautiously optimistic, with numerous brokerages maintaining hold or moderate buy ratings as the company transitions from a high-growth pandemic darling to a stable, cash-generative enterprise software provider.