Zoom Communications Inc. (NASDAQ:ZM) on Thursday reported better-than-expected first-quarter financial results and raised its FY27 guidance.
Zoom reported revenue of $1.24 billion for the first quarter, beating the consensus estimate of $1.22 billion. The company posted first-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.42 per share, according to Benzinga Pro.
"Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch," said Eric Yuan, founder and CEO of Zoom.
The company now expects full-year revenue of $5.08 billion to $5.09 billion, versus estimates of $5.07 billion. Zoom now sees full-year adjusted earnings of $5.96 to $6 per share versus estimates of $5.87 per share.
Zoom shares gained 10.4% to trade at $106.89 on Friday.
These analysts made changes to their price targets on Zoom following earnings announcement.
- Needham analyst Joshua Reilly maintained the stock with a Buy and raised the price target from $100 to $130.
- BTIG analyst Allan Verkhovski maintained the stock with a Buy and raised the price target from $100 to $125.
- Mizuho analyst Siti Panigrahi maintained Zoom with an Outperform rating and raised the price target from $100 to $120.
- Piper Sandler analyst James Fish maintained the stock with a Neutral and raised the price target from $91 to $107.
- Rosenblatt analyst Catharine Trebnick maintained the stock with a Buy and raised the price target from $115 to $130.
- Benchmark analyst Matthew Harrigan maintained the stock with a Buy and boosted the price target from $121 to $125.
- Cantor Fitzgerald analyst Thomas Blakey maintained Zoom with a Neutral and increased the price target from $87 to $104.
Considering buying ZM stock? Here’s what analysts think:
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