Cantor Fitzgerald has maintained a neutral rating on Zoom Video Communications Inc. (NASDAQ: ZM), citing stable demand in the second fiscal quarter supported by product expansion and early monetization of artificial intelligence capabilities.
The firm reiterated its neutral stance despite the stock trading at $107.43, above its price target of $104.00. Analysts noted that sustained mid-to-high single-digit growth and robust performance in the enterprise segment would be necessary to justify recent multiple expansions, particularly following Zoom's strategic investment in AI startup Anthropic.
Zoom's recent initiatives include the launch of ZoomMate, an AI assistant priced at $20.00 per user per month in North America, designed to integrate with platforms such as Salesforce, Jira, and Slack. Additionally, the company introduced an independent version of its Virtual Agent Receptionist, which operates with existing phone systems without requiring Zoom Phone.
The firm also highlighted a 10.1% year-over-year increase in dollar-based retention revenue from professional opportunities in the fourth fiscal quarter of 2026, followed by a 10.9% rise in the first fiscal quarter of 2027. Gross margins remained strong at 77.77%, according to InvestingPro data.
In the enterprise segment, net expansion rates improved by 1 percentage point to 99% in the first fiscal quarter of 2027, while demand stability was confirmed during the second fiscal quarter. Analysts pointed to a relatively favorable comparison base as a contributing factor.
Zoom also announced the acquisition of Common Room, an AI-driven sales intelligence platform, and elected Eric S. Yuan and Lieutenant-General H.R. McMaster as Class I directors during its 2026 Annual Shareholders Meeting.
The firm's neutral rating reflects a balanced view of Zoom's current positioning, balancing growth potential in AI integration against valuation concerns amid elevated stock prices.
