Zoom Communications Inc. (NASDAQ:ZM) has received a Buy rating from Benchmark analyst Matthew Harrigan, who has raised the price target for the company’s shares from $97 to $102. This comes after Zoom increased its constant currency revenue forecast for the full year by $15 million and marginally exceeded its first-quarter fiscal year 2026 guidance.
Despite a slight decline in the previous forecast for Enterprise sales, Zoom’s performance has shown a modest upward revision in estimates. The company’s revenue exceeded expectations by $8 million, with an additional $10-15 million benefit from higher rates for monthly Pro customers. The updated guidance also reflects Zoom’s flexibility in adjusting its pricing strategy to enhance the profitability of its Online segment.
During the earnings call, Zoom CEO Eric Yuan used a lifelike avatar in his opening remarks to underscore the company’s commitment to security and privacy. Benchmark predicts that Zoom’s technological capabilities will progress to the point where the CEO’s avatar closely resembles the real Eric Yuan in less than a year. This highlights the importance of implementing customer-specific approval levels for AI integration.
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