Zoom Communications (NASDAQ: ZM) Stock Analysis: AI Strategy, Financial Performance, and Analyst Price Targets

• Zoom Communications (NASDAQ: ZM) is strategically investing in artificial intelligence (AI) features to enhance its competitive edge in the video-conferencing market.
• Despite strong second-quarter results, the company's third-quarter profit forecast fell short of analyst expectations, leading to pressure on its stock price.
• Jefferies analyst Samad Samana adjusted the price target for Zoom to $116, indicating a potential 14.94% upside from its current trading level.

Zoom Communications (NASDAQ: ZM) is a well-known video-conferencing company. It faces strong competition and is now increasing its focus on artificial intelligence (AI) features to stay ahead. The company's stock currently trades at $100.92, with a total company value, or market capitalization, of approximately $29.59 billion.

On August 26, 2026, Jefferies analyst Samad Samana adjusted the price target for Zoom, lowering it to $116. A price target is an analyst's projection of a stock's future price. This new target suggests a potential upside of about 14.94% from the stock's price at the time of the announcement.

The adjustment follows Zoom's recent financial report. As highlighted by Reuters, the company's forecast for third-quarter profit is below what Wall Street expects. This "soft guidance," or weaker-than-expected future outlook, has put pressure on the stock's price despite an otherwise strong quarter, as noted by Benzinga.

In its second quarter, Zoom reported positive results that beat analyst expectations. The company posted revenue of $1.28 billion, which is a 4.9% increase from the same period last year. Its adjusted earnings per share (EPS) were $1.55 per share, also higher than what analysts had predicted.

A key area of strength is its enterprise business, which serves large companies. As reported by The Wall Street Journal, this segment's revenue grew 7.8% year-over-year to $787.50 million. Zoom also saw an 8.2% increase in customers who contribute over $100,000 in revenue, showing growth among its high-value clients.