Zoom Video Communications Inc. (NASDAQ: ZM) received a price-target increase from Bernstein SocGen Group on Wednesday, as the brokerage raised its valuation to $108 from $103 while maintaining a Market Perform rating.
The adjustment follows Zoom’s fiscal second-quarter results, which reported revenue of $1.28 billion, a 4.9% year-over-year increase and $10 million above the midpoint of prior guidance. Non-GAAP earnings per share came in at $1.55, exceeding the consensus estimate of $1.48. Gross profit margin held at 77.66% over the trailing twelve months.
Enterprise demand remained the primary driver, with corporate segment revenue rising 7.8% and now accounting for 62% of total sales. Constant-currency growth accelerated to the high-4% range, up nine basis points from the prior quarter. The online consumer segment showed weaker performance, though management indicated the decline had stabilized since the first quarter and set the second-quarter level as the baseline for the remainder of the year.
Bernstein’s valuation model combines a 50/50 split between discounted cash flow—using a 0% terminal growth rate and an 11% weighted average cost of capital—and a six-times forward price-to-sales multiple. The brokerage also cited Zoom’s strategic stake in Anthropic, valued at approximately $3.1 billion, as a contributing factor to its updated target. Current trading metrics include a price-to-earnings ratio of 14.89 and a PEG ratio of 0.05.
