• Zoom Communications was recognized for the first time in the 2025 Gartner Magic Quadrant for Contact Center as a Service (CCaaS), three years after launching its Zoom Contact Center in 2022.
• This recognition highlights external validation of Zoom's AI-first platform and expands its standing alongside prior inclusion in Gartner's Magic Quadrant for Unified Communications as a Service (UCaaS).
• We'll examine how Gartner's acknowledgement of Zoom’s AI-powered Contact Center impacts its investment narrative and long-term platform ambitions.

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Zoom Communications Investment Narrative Recap

To own shares of Zoom Communications, an investor needs to believe in the company's ability to leverage sustained enterprise demand for AI-powered collaboration and contact center solutions, even as competition rises and the core video meeting market flattens. Recognition in the 2025 Gartner Magic Quadrant for CCaaS validates Zoom's platform expansion but does not fundamentally shift the most important near-term driver, Zoom’s ability to grow recurring revenue through enterprise adoption of its diversified offerings. The largest risk remains pricing pressure from bigger, more integrated software vendors. Among Zoom’s recent product announcements, enhancements to its Zoom Virtual Agent, such as seamless integration with Zoom Phone and the launch of a 24/7 AI receptionist, are especially relevant. These advancements highlight Zoom’s commitment to embedding AI across customer-facing channels, directly supporting the strategy behind its inclusion in Gartner’s CCaaS Magic Quadrant and addressing enterprise needs that underpin future recurring revenue and platform growth. Yet, amid growing customer reliance on Zoom’s AI features, investors should be aware that competition from end-to-end platforms continues to...

Zoom Communications' outlook anticipates $5.3 billion in revenue and $1.2 billion in earnings by 2028. This projection is based on a 3.4% annual revenue growth rate with earnings expected to remain flat from the current $1.2 billion level, representing no change in earnings over this period.

Uncover how Zoom Communications' forecasts yield a $91.63 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community range from US$90.24 to US$113.59 per share, reflecting wide-ranging assessments of Zoom’s earnings potential. While community views differ, the risk of pricing pressure from larger software providers raises important questions for Zoom’s growth and market positioning.

Explore 7 other fair value estimates on Zoom Communications - why the stock might be worth as much as 35% more than the current price!

Build Your Own Zoom Communications Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zoom Communications research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Zoom Communications research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zoom Communications' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.