Bernstein Lowers Zoom Price Target to $88; Q4 Revenue $1.25B, $324M Buybacks
Bernstein cut its price target to $88 and BTIG to $100, noting a 2.9% monthly churn rate and a $15 million FY26 revenue lift from prior pricing. Zoom’s Q4 revenue rose 5.3% to $1.25 billion, free cash flow grew 6.4% to $1.9 billion, and it repurchased $324 million of shares.
1. Price Targets and Pricing Tailwinds
Bernstein cut its FY26 price target to $88 from $90 and maintained a Market Perform rating, while BTIG trimmed its target to $100 from $105 and reiterated a Buy rating. Both firms highlighted a stabilized online segment with 2.9% monthly churn and an estimated $15 million lift from last June’s price increase, plus an additional SKU price adjustment rolling out in mid-March.
2. Q4 FY26 Financial Performance
Zoom posted Q4 FY26 revenue of $1.25 billion, up 5.3% year-over-year and $12 million above the high end of guidance, driving FY26 revenue growth of 4.4% and accelerating growth by 130 basis points versus FY25. Guidance projects FY27 revenue to exceed $5.06 billion at the midpoint, supporting expectations for approximately 5% growth next fiscal year.
3. Share Repurchases and Cash Flow
Free cash flow rose 6.4% to $1.9 billion in FY26, and Zoom repurchased 3.8 million shares for $324 million in Q4, totaling 36.3 million shares for roughly $2.7 billion year-to-date under a $3.7 billion authorization. Management plans to continue repurchases to offset dilution while leveraging improving cash flow.