Zoom Communications (NASDAQ: ZM) projected third-quarter adjusted earnings per share between $1.46 and $1.48, missing the consensus estimate of $1.50. The video conferencing firm also forecast sales of $1.275 billion to $1.280 billion, slightly below the expected $1.282 billion.

Financial Outlook

The company’s guidance indicates a cautious stance on near-term profitability and top-line growth. Analysts had anticipated higher earnings power, with the upper bound of Zoom’s EPS range falling 2 cents short of the market expectation.

What the Numbers Show

The divergence between the forecasted revenue ceiling ($1.280 billion) and the analyst estimate ($1.282 billion) is narrow, suggesting stable demand visibility. However, the wider gap in earnings per share implies potential pressure on operating margins or higher-than-expected costs during the quarter, as revenue did not decline proportionally to the miss in profitability metrics.

Zoom Communications (NASDAQ: ZM) reports second-quarter earnings after market close on Tuesday, August 25. While analysts project a continuation of its revenue beat streak, investor focus is increasingly shifting to the company’s private stake in AI firm Anthropic.

Analysts expect quarterly earnings of $1.48 per share, down from $1.53 per share in the year-ago period. Consensus estimates project revenue of $1.27 billion, compared to $1.22 billion last year. This represents a modest year-over-year increase, reflecting sustained customer traction despite intensifying competition from Alphabet and Microsoft.

Zoom has beaten analyst estimates for revenue in 15 straight quarters and for earnings per share in nine of the last 10 quarters overall.

Analyst Ratings and Price Targets

Several prominent analysts have recently revised their outlooks for Zoom. BTIG analyst Allan Verkhovski maintained a Buy rating with a price target of $125, citing strong fundamentals and acceleration in the Enterprise segment. Verkhovski noted that shares are up 29% year-to-date, driven by top-line acceleration and the growing value of its stake in Anthropic.

HSBC analyst Stephen Bersey increased the price target from $107 to $133 on June 2, 2026, maintaining a Buy rating. Rosenblatt Securities analyst Catharine Trebnick maintained a Buy rating with a $130 price target on August 21, 2026. Needham analyst Joshua Reilly also maintains a Buy rating with a $130 target.

UBS analyst Taylor McGinnis raised the price target from $105 to $115 on August 20, 2026, while maintaining a Neutral rating. RBC Capital analyst Rishi Jaluria maintains an Outperform rating with a $130 target. Cantor Fitzgerald maintains a Neutral rating with a $104 target.

The Anthropic Stake Factor

The biggest catalyst for Zoom stock may be its quiet investment in Anthropic. Zoom invested $51 million in Anthropic back in 2023 and maintains a stake today. With Anthropic facing IPO speculation and a potential $2 trillion valuation, this position could significantly impact Zoom’s valuation.

When Anthropic reached a $900 billion valuation in May, Wedbush estimated Zoom’s position was worth between $4.11 billion and $11.31 billion. Baird estimated it at $5.14 billion to $10.28 billion. A $2 trillion valuation for Anthropic would more than double those ranges:

• Wedbush estimate: $9.12 billion to $25.11 billion
• Baird estimate: $11.41 billion to $22.82 billion

With a current market capitalization of $31.5 billion, Zoom stock could be undervalued based on the Anthropic stake alone. Baird previously called the stake a “hidden gem,” suggesting it could be more valuable than Zoom’s revenue and AI offerings in the future.

What the Numbers Show

The previous quarter’s data highlights a divergence between top-line revenue growth and user adoption metrics. While revenue rose by only 5.5% in the March quarter to $1.23 billion, the number of AI Companion users surged by 184%. This suggests that while the user base for new AI features is expanding rapidly, this adoption has not yet translated into proportional revenue growth. Enterprise revenue accounted for $755 million of the total, indicating continued reliance on large clients despite the slow overall growth rate.

In the first quarter, Zoom reported enterprise revenue up 7.2% year-over-year and online revenue up 2.8% year-over-year. Strong growth in both segments in the second quarter could provide a bullish case for the stock moving forward.

Valuation and Technical Outlook

The stock appears undervalued relative to peers, with a forward price-to-earnings ratio of 17.6, below the sector median of 23.20 and its five-year average of 19.60. Its Rule-of-40 multiple stands at 44.8%.

Technically, the stock has moved from a low of $82.21 in June to $107.43. It is forming a bullish pennant pattern, with the Supertrend indicator remaining green since late July. The stock trades above the 50-day moving average, with an initial technical target of $110.9 if a breakout occurs post-earnings. Shares were down 1.8% to $105.46 on Monday, versus a 52-week trading range of $70.70 to $114.74.

Corporate Developments

Zoom recently announced the appointment of Carlos Quaderi as Head of Asia Pacific. Analysts also anticipate commentary on the financial impact of its acquisition of Common Room, an AI intelligence platform.