Cautious Hold on Zoom Video Communications Amid Uncertain Long-Term Growth Prospects

Tyler Radke, an analyst from Citi, maintained the Hold rating on Zoom Video Communications. The associated price target remains the same with $94.00.

Tyler Radke’s rating is based on Zoom Video Communications’ recent financial performance and future growth prospects. Zoom’s third-quarter results exceeded revenue expectations, driven by strong execution in both its Enterprise and Online segments. The Online revenue showed notable growth, marking its strongest performance since 2022, and the company has adjusted its guidance to reflect slight growth instead of flat expectations. However, there are concerns about the sustainability of this accelerated growth, especially as significant price increases in the Online segment are anticipated to occur in FY26.
Despite these positive signs, certain forward-looking growth metrics, such as calculated billings growth, have shown some deceleration. This uncertainty about durable growth into FY27 has led to a cautious outlook. While the business has demonstrated resilience and improved profitability, Radke maintains a Hold rating, awaiting more definitive signs of accelerating growth or margin leverage before considering a more favorable recommendation.

In another report released today, Bernstein also maintained a Hold rating on the stock with a $90.00 price target.