Zoom Video Communications (NASDAQ: ZM) has seen its stock come down sharply from its pandemic highs. Shares now trade around $81/share, far below peak levels, as revenue growth slows and competition intensifies. Still, Zoom’s strong margins, sticky enterprise base, and cash-rich balance sheet keep it on the radar for long-term investors.
Recently, Zoom used its annual Zoomtopia 2025 conference to showcase how it is moving beyond meetings. The company introduced AI Companion 3.0, which will roll out in November 2025 for paid Zoom Workplace accounts. Zoom also unveiled a Custom AI Companion add-on, priced at $12 per user per month, allowing companies to build their own tailored AI assistants. Alongside this, the company launched a Virtual Agent for Zoom Phone, a 24/7 AI concierge that can handle calls in multiple languages and automate receptionist tasks. These updates highlight Zoom’s push to stay relevant in the age of AI-driven enterprise software.
This article explores where Wall Street analysts think Zoom could trade by 2028. We have pulled together consensus targets, growth forecasts, and valuation models to get a sense of the stock’s possible trajectory. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
Zoom trades at about $81.28/share today. The average analyst price target is $92.67/share, which points to around 14% upside. Forecasts show a wide spread and reflect divided sentiment:
- High estimate: ~$115/share
- Low estimate: ~$67/share
- Median target: ~$93/share
- Ratings: mix of Buys, Holds, and a few Sells
It looks like analysts see some room for gains, but conviction is weak given the wide range of outcomes. For investors, this means Zoom is unlikely to deliver a clear breakout unless it surprises on growth or adoption. The muted upside suggests the market is cautious, and buyers should weigh whether a potential 14% gain is worth the risks tied to slowing revenue.
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Zoom: Growth Outlook and Valuation
The company’s fundamentals look steady but not exciting:
- Revenue is projected to grow ~3.5% annually through 2028
- EPS is also expected to grow ~3.5% annually
- Operating margins remain strong at ~39%
- Shares trade at ~14x forward earnings, well below past averages
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 14x forward P/E suggests ~$89.77/share by 2028
- That implies about 10.4% upside, or 4.3% annualized returns
These numbers highlight that Zoom is no longer a high-growth story but more of a steady compounder. For investors, the valuation looks fair relative to its slower profile, making Zoom a dependable, cash-rich name but not one with explosive upside.
The risk is that without new drivers, the stock could underperform faster-growing peers, leaving investors with safe but modest returns.
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What’s Driving the Optimism?
Zoom continues to generate strong profitability even as revenue growth slows. Gross margins sit at 76%, while EBIT margins are about 20%, showing the business remains highly efficient. The company has expanded beyond meetings into Zoom Phone and Zoom Contact Center, creating new sources of recurring revenue that can stabilize performance.
The AI push is another reason for optimism. AI Companion 3.0, coming in November 2025, will work across Zoom and even integrate with other platforms like Microsoft Teams and Google Meet. The Custom AI add-on priced at $12/user/month gives enterprises the ability to design personalized AI assistants, creating a potential new revenue stream. Meanwhile, the Virtual Agent for Zoom Phone provides 24/7 call handling in multiple languages, aimed at reducing missed calls and improving customer interactions.
With about $7.7 billion in net cash, Zoom also has the flexibility to invest in growth initiatives or acquisitions. For investors, these factors create a defensive profile that reduces downside risk and positions Zoom to deliver stable returns even in a slow-growth environment.
Bear Case: Sluggish Growth and Competition
Despite strong margins, Zoom faces slowing revenue, projected to grow just 3–4% annually in coming years. Competitors like Microsoft Teams and Google Meet remain formidable, often bundled into broader enterprise suites that reduce Zoom’s pricing power. These dynamics could cap Zoom’s ability to expand meaningfully beyond its current base.
At 3.4x EV/revenue, the stock already trades cheaply compared to past levels. But if growth slows further, investors may value it more like a utility software provider, keeping multiples low. For investors, the risk is a long stretch of flat performance where Zoom’s strong cash flows do not translate into stronger stock gains.
Outlook for 2028: What Could Zoom Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 14x forward P/E suggests Zoom could trade near $90/share by 2028. That would represent about a 10% gain from today’s level, or 4% annualized returns. The scenario assumes steady margins but only modest top-line growth.
While this outcome points to stability, it does not signal explosive growth. To deliver stronger upside, Zoom would likely need to outperform on new product adoption, enterprise upselling, or AI-driven expansion. Without that, returns may be reliable but unspectacular. For investors, Zoom looks like a solid, cash-rich holding with limited downside, but those seeking big growth may need to look elsewhere.
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