It's been a pretty great week for Zoom Video Communications, Inc. (NASDAQ:ZM) shareholders, with its shares surging 17% to US$70.14 in the week since its latest second-quarter results. It looks like a credible result overall - although revenues of US$1.2b were what the analysts expected, Zoom Video Communications surprised by delivering a (statutory) profit of US$0.70 per share, an impressive 45% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Zoom Video Communications

Following last week's earnings report, Zoom Video Communications' 32 analysts are forecasting 2025 revenues to be US$4.64b, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 12% to US$2.51 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$4.62b and earnings per share (EPS) of US$2.22 in 2025. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of US$75.68, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Zoom Video Communications, with the most bullish analyst valuing it at US$95.00 and the most bearish at US$60.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zoom Video Communications' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Zoom Video Communications' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Zoom Video Communications is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Zoom Video Communications following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Zoom Video Communications analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Zoom Video Communications has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.