A $3.13 Billion Reason to Buy Zoom Communications Stock Now

Artificial intelligence (AI) is changing the software landscape, giving investors a reason to reconsider which companies can capture the next wave of enterprise spending. Zoom Communications (ZM) occupies an appealing intersection, pairing an established communications platform with an expanding AI strategy. 

Zoom once depended heavily on video conferencing. Its enterprise business now grows faster than overall revenue, while AI products play a larger role across its broader platform. Meanwhile, the company’s Anthropic investment has evolved into a strategic asset, giving investors a solid reason to examine Zoom’s multifaceted stock story.

The company made its initial Anthropic investment in early 2023, when the position looked modest. Since then, Anthropic’s value has climbed sharply as demand for advanced AI continues reshaping the technology industry. The AI-powered communications platform’s stake in Anthropic now carries a value of $3.13 billion.

Moreover, during the second quarter of FY2026, Zoom recorded an unrealized gain of $1.61 billion. The company also added roughly $301 million to that position during the six months through July, strengthening its exposure. Zoom has also invested $140.2 million in equity securities of other private companies developing AI products. 

These investments add weight to the portfolio and make the strategy harder to dismiss as a side bet. However, understanding what this means for shareholders requires a closer look. 

About Zoom Stock

The San Jose, California-based Zoom Communications is an AI-first work platform that enables seamless communication, collaboration, and human connection. Its nearly $29.4 billion market cap supports an integrated suite covering video meetings, cloud telephony, team chat, productivity tools, and workspace solutions.

Zoom’s shares have already delivered a lively performance. The stock has climbed 21.8% during the last 52 weeks and gained 14.1% year-to-date (YTD). Recent momentum remains encouraging, with shares rising 7.6% over the past month. 

On the valuation front, ZM stock is trading at 16.33 times forward adjusted price-to-earnings. This places the figure below both the industry average and its own five-year average multiple, suggesting a wise entry point for long-term investors. 

Zoom Surpasses Q2 Earnings

Zoom reported solid Q2 FY2027 results on Aug. 25, with enterprise growth and its expanding AI portfolio increasingly driving performance. Revenue increased 4.9% year-over-year (YOY) to $1.28 billion, topping Street expectations of $1.27 billion. 

Enterprise revenue rose 7.8% YOY to $787.5 million, while online revenue increased only 0.6% YOY. The contrast highlights the growing importance of business customers. Enterprise momentum remained central to Zoom’s progress, with customers generating more than $100,000 in trailing-12-month revenue increasing 8.2% YOY during the period.

Zoom’s Enterprise net dollar expansion rate improved to 99% YOY, reinforcing the strength of its customer relationships. AI is gaining ground too, with Zoom Virtual Agent customers jumping 256% YOY. The company reported strong double-digit ARR growth across its AI-first Customer Experience portfolio.

Profitability came in strong, with non-GAAP operating margin reaching 40%. Non-GAAP EPS rose 1.3% YOY to $1.55, surpassing Wall Street expectations of $1.50. Zoom is adding AI capabilities across collaboration, customer experience, and employee workflows, creating broader opportunities to monetize its installed base. 

For Q3 FY2027, management expects total revenue between $1.275 billion and $1.280 billion. It expects non-GAAP income from operations between $510 million and $515 million, while non-GAAP diluted EPS could land between $1.46 and $1.48.

Looking ahead to full-year FY2027, Zoom expects total revenue between $5.085 billion and $5.095 billion. Non-GAAP income from operations is projected to reach between $2.065 billion and $2.075 billion, while non-GAAP diluted EPS might come in between $6.08 and $6.12.

On the other hand, analysts expect Q3 FY2027 EPS to rise 14.6% YOY to $1.02. For full year FY2027, analysts forecast EPS growth of 28% YOY to $4.25. It expects EPS to rise 5.7% from the previous year to $4.49 in FY2028. 

What Do Analysts Expect for Zoom Stock?

Analysts remain bullish on Zoom. Matt Bullock of Bank of America Securities has maintained a “Buy” rating on ZM stock with a $130 price target. Catharine Trebnick of Rosenblatt Securities also reiterated a “Buy,” maintaining her $130 price target. Furthermore, Peter Levine of Evercore ISI maintains a “Buy” rating with a $135 price target.

The analyst community is leaning bullish, giving ZM stock an overall “Moderate Buy” rating. Among 27 analysts covering the name, 12 recommend a “Strong Buy,” three assign a “Moderate Buy,” and the remaining 12 suggest investors “Hold.”

To that end, the average price target stands at $117.95, implying potential upside of 19.8%. Meanwhile, the Street-High target of $135 set by Evercore ISI points to a possible gain of 37.2% from current levels.