Zoom Video Communications Inc ZM shares tanked in early trading on Tuesday, after the company reported upbeat third-quarter results.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

Goldman Sachs On Zoom Video Communications

Analyst Kash Rangan maintained a Neutral rating while raising the price target from $72 to $86.

Zoom Video reported "solid" quarterly results, with revenue beating consensus by 1%, operating margin by 90 basis points (bps), and billings growth by 350 bps, Rangan said in a note. The results indicated "stability in the core," with Enterprise revenues growing 6% and the company recording record-low online churn, he added.

The stock lost around 5% in after-hours trading on Monday as the company announced a lower-than-expected upward revision of its fourth-quarter guidance, "undermining confidence in a near-term growth inflection," the analyst stated.

Zoom Videos' AI momentum is highlighted by AI Companion's monthly active users (MAUs) rising 59% versus the previous quarter, "which we believe helps validate Zoom's AI approach and sets a strong foundation for eventual monetization," he further wrote.

Check out other analyst stock ratings.

JPMorgan On Zoom Video Communications

Analyst Mark Murphy reiterated a Neutral rating and price target of $80.

Zoom Video guided to fourth-quarter revenue growth of 2.7%, representing a deceleration from the third quarter's 3.6% growth, Murphy said. Management hinted that revenue growth in fiscal 2026 would be closer to the fourth quarter's 2.7% projection, which is below current Street expectations of 3.3%, he added.

Investors may remain on the sidelines until there is greater visibility into the pace of revenue growth as well as medium-term pro-forma operating and free cash flow margins, the analyst stated. "All else equal, we think the repurchasing of shares sends a supportive signal as to Zoom's view of the underlying business," he further wrote.

ZM Price Action: Shares of Zoom Video Communications declined by 6.91% to $82.95 at the time of publication on Tuesday.

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