Zoom Rises 8% in 3 Months: Here's Why You Should Buy the Stock Now

Core Viewpoint - Zoom Communications, Inc. has demonstrated strong stock performance, gaining 7.6% over the past three months, outperforming both the Zacks Computer and Technology sector and the S&P 500 index [1][2] Group 1: AI-Driven Innovation - The company's growth is significantly driven by its AI innovations, particularly the adoption of Zoom AI Companion, which has seen nearly 40% quarter-over-quarter growth [2][5] - Zoom has begun monetizing its AI offerings with the launch of Custom AI Companion, receiving positive feedback from Global 2000 trial customers [6] Group 2: Enterprise Segment Growth - Zoom's enterprise revenues grew approximately 6% year-over-year, accounting for 60% of total revenues, an increase of two percentage points from the previous year [7] - The number of customers contributing over $100,000 in trailing 12-month revenues increased by 8% year-over-year, representing 32% of total revenues in the fiscal first quarter [7] Group 3: Positive Financial Outlook - For the second quarter of fiscal 2026, Zoom expects total revenues between $1.195 billion and $1.2 billion, with non-GAAP diluted earnings per share anticipated between $1.36 and $1.37 [9] - The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.2 billion, indicating a year-over-year growth of 2.96% [10] Group 4: Competitive Positioning - Zoom is positioning itself as an AI-first platform to differentiate from competitors like Cisco's Webex and Microsoft's Teams [4][12] - Recent enterprise wins, such as the Boston Celtics upgrading to Zoom Workplace Enterprise Plus, highlight the company's growing adoption in large enterprises [8]