Zoom Video Communications Inc (NASDAQ:ZM) faces balanced risk and reward as growth in its core Meetings business slows, according to analysts at UBS, with modest contributions expected from its Phone and Contact Center products and limited near-term upside from AI monetization.
UBS assumed coverage of Zoom with a Neutral rating, saying it is waiting for clearer signs of a growth acceleration as its core Meetings product matures.
“While the ‘core’ Meetings product is saturated, our bottoms-up revenue analysis identifies Phone and Contact Center as the growth drivers,” UBS analysts wrote in a note.
The firm expects revenue growth of 3.8% in fiscal 2026 and 3.4% in fiscal 2027, slightly ahead of Wall Street estimates.
UBS said partner checks were mixed across Zoom’s business lines. Analysts are bullish on Phone, mixed on Contact Center, and leaned negative on monetizing Zoom’s Custom AI Companion this year, according to the note.
The brokerage estimates that Zoom Phone could add about $80 million in revenue by fiscal 2027, contributing 170 basis points of growth, while Contact Center could add $44 million, or 90 basis points. One large partner cited Phone as responsible for 60% of its Zoom-related business growth.
UBS’s analysis using its HOLT flex valuation tool suggests the market is pricing in 3–4% long-term growth — roughly in line with its own forecast. Its Evidence Lab survey of 450 IT decision-makers found that about 80% plan to renew contracts with platforms like Zoom, Google Meet, or Microsoft Teams in 2025, though 43% of respondents said they are paying for too many Zoom seats.
The firm maintained its price target of $85, applying a 9x multiple on calendar 2027 free cash flow, in line with peers.
Shares of Zoom were up 2.7% in New York on Monday afternoon.