Key Stats for Zoom Communications Stock
- Pre-Market Price Change for Zoom Communications stock: 5%
- $ZM Share Price as of Nov. 24: $78.60
- 52-Week High: $88.90
- $ZM Stock Price Target: $93
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What Happened?
Zoom Communications (ZM) stock jumped nearly 5% today after the video conferencing giant crushed third-quarter expectations and raised its full-year outlook.
The company also announced a fresh $1 billion share buyback authorization, signaling management’s confidence in the business.
Zoom earned $1.52 per share on $1.23 billion in revenue for the quarter, topping analyst estimates of $1.44 per share and $1.21 billion, respectively.
Revenue grew 4.4% year-over-year, with the beat coming in $15 million above the high end of guidance. More impressively, non-GAAP operating income jumped 11% to $507 million, exceeding guidance by $37 million.
The company’s enterprise business continues to drive growth, expanding 6.1% year-over-year and now representing 60% of total revenue.
Customers spending over $100,000 annually grew 9%, while the online business showed signs of stabilizing, with monthly churn hitting an all-time low of 2.7%.
CEO Eric Yuan, who delivered his prepared remarks using Zoom’s AI avatar feature, emphasized the company’s transformation from a communications platform into an “AI-first work platform for human connection.”
The company unveiled AI Companion 3.0, its next-generation agentic AI that goes beyond meeting summaries to proactively prepare for meetings, follow up on tasks, and drive work forward. AI Companion adoption surged more than 4x year-over-year.
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What the Market Is Telling Us About Zoom Video Stock
The rally in Zoom Video stock reflects investor enthusiasm about the company’s AI-driven product expansion and improving profitability.
Operating margins expanded 234 basis points to 41.2%, driven by cost optimization efforts and disciplined spending. Free cash flow jumped 34% year-over-year to $614 million, representing a 50% margin.
Zoom’s customer experience (CX) business emerged as a standout performer, with ARR continuing to grow in the high double digits.
The Contact Center product earned recognition in Gartner’s 2025 Magic Quadrant just three years after launch.
Nine of the top 10 CX deals involved paid AI features like Virtual Agent or AI Expert Assist, demonstrating strong monetization potential.
Zoom Phone hit a significant milestone by surpassing 10 million paid seats in the quarter, with ARR growing in the mid-teens.
Major wins included Rothman Orthopedics and Platinum Dermatology, which adopted the platform for its AI capabilities and healthcare-specific integrations.
The company also announced plans to acquire BrightHire, an AI-powered hiring intelligence platform, extending Zoom’s reach into HR workflows.
CFO Michelle Chang called the $3 billion hiring intelligence market “large and unpenetrated,” offering another growth vector for the company.
For guidance, Zoom raised full-year revenue expectations to $4.852 billion to $4.857 billion, representing 4.1% growth at the midpoint.
The company also boosted its non-GAAP operating income outlook to $1.955 billion to $1.96 billion, with operating margins expected to hit 40.3%. Free cash flow guidance increased to $1.86 billion to $1.88 billion for the full year.
The additional $1 billion share repurchase authorization comes after the company has already repurchased 32.5 million shares for $2.4 billion under its existing program.
Management views the buyback as a way to leverage strong cash flow generation while reducing dilution and returning value to shareholders.
The AI monetization strategy is still in its early stages, but strong adoption metrics and enterprise wins suggest significant upside as custom AI companions and vertical-specific AI solutions scale.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
