Benchmark upgraded its price objective for Zoom Video Communications to $115 from $110 while maintaining a Buy recommendation on the stock. The firm highlighted Zoom’s current valuation metrics, noting a price-to-earnings ratio of 17.4 and a PEG ratio of 0.22, which InvestingPro analysis indicates leaves the shares appearing undervalued at prevailing levels.
Analyst Matthew Harrigan raised Benchmark’s fiscal 2027 price target by five points. The change reflects what the firm describes as a conservative appraisal of the effect of Zoom’s stake in Anthropic on its strategic investment portfolio, while continuing to value Zoom’s core businesses on a multiple-to-long-term-growth basis relative to the Nasdaq 100 index.
Benchmark said it expects a positive tone from Zoom’s fiscal fourth quarter 2026 earnings release, which is scheduled to be published after the market close on Tuesday. Alongside that outlook, an InvestingPro tip emphasized that Zoom holds more cash than debt on its balance sheet, a point highlighted as one of 10 additional ProTips available to subscribers. The firm also anticipates greater attention toward recent advances across Zoom’s product lineup.
Benchmark’s report singled out the demonstrable efficacy and cost efficiency of Zoom’s federated AI approach as a supporting factor for its view. The firm reiterated its approach of valuing Zoom’s core businesses in relation to the Nasdaq 100, a framework it used in setting the revised target.
Zoom Video Communications trades on the NASDAQ under the ticker NASDAQ:ZM.
On the product front, Zoom recently introduced Zoom Virtual Agent 3.0, an upgraded customer service platform intended to streamline workflows and reduce repeat customer interactions. The release notes improved capabilities across both voice and chat channels and described integrations with systems such as customer relationship management and billing platforms.
Zoom’s most recent earnings report topped expectations. Revenue grew 4.4% year-over-year, beating UBS’s projection by $15 million, and the enterprise segment expanded by 6%, ahead of UBS’s 5% forecast.
Analyst activity at other firms has mirrored a range of views. Wedbush raised its price target to $110, citing confidence in the company’s AI strategy to broaden its enterprise customer base. Baird reiterated an Outperform rating and underscored the potential value of Zoom’s investment in Anthropic, estimating that stake could be worth between $2 billion and $4 billion; that investment was initially recorded at $51 million when made in May 2023. UBS retained a Neutral rating and an $85 price target following the earnings report.
Taken together, Benchmark’s target increase, the recent product launch, and the earnings beat have contributed to a cluster of analyst reactions and investor attention. Benchmark’s emphasis on balance-sheet strength and the economics of its federated AI approach framed the firm’s upgrade, while other firms have adjusted their views based on Zoom’s evolving AI-related investments and commercial traction.
Investors and market participants awaiting Zoom’s fiscal fourth quarter 2026 results will likely weigh the company’s cash-versus-debt position, near-term revenue performance and the traction of new product releases such as Virtual Agent 3.0 alongside analysts’ varying valuations of the firm’s Anthropic holding.