New $1bn buyback announced
Accelerating buybacks lift EPS and show clear balance-sheet conviction.
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Transforming work with unified, AI-powered communications. Why Zoom’s evolution matters
Updated: Nov 25, 2025
TechnologyConsumer
Bull & Bear Case
An overview of the main reasons to invest and the key risks involved.
Bull Case
AI Suite Driving Growth
Rising AI adoption and strong CX ARR make AI the core engine.
Larger Market Reach
Phone, CX and Workvivo expand the platform and deepen enterprise spend.
Bear Case
Intense Competition
Microsoft Teams bundling and platform integration advantages limiting growth
Economic Sensitivity
Small business weakness and potential enterprise budget pressures impacting revenue
Platform Transition Risks
AI platform transition complexity with unclear monetization pathways
Investment Thesis
Overview of buy and sell case of the business.
Why Invest?
Key pieces of information about the business that you need to know about.
New $1bn buyback announced
The company is leaning into its cash strength and retiring shares at scale. More than 32 million shares are already gone and a fresh 1 billion dollar authorisation is now active. This turns steady revenue growth into stronger EPS and signals real conviction from the board and management.
AI Suite Becoming the Main Growth Driver
AI adoption keeps climbing with large enterprises rolling out multi-product workflows across Companion, Custom AI and Contact Center. High double digit ARR in CX and strong competitive wins show the AI Suite is becoming the engine that carries the platform forward.
Expanding Addressable Market
The platform continues to spread across Phone, Contact Center and Workvivo with large enterprise customers increasing their spend. Consistent growth in high value accounts reinforces the platform’s position across communication, workflow and employee experience, widening the long run opportunity.
Catalysts
The key events that could drive investment opportunities and shift markets.
New $1bn Buyback: A fresh $1bn repurchase authorisation sits on top of strong free cash flow and a balance sheet with real muscle. If management leans in and accelerates the pace, share count drops faster and EPS moves ahead of the growth rate. The market responds quickly to that kind of discipline.
AI pricing power becomes visible: Once the first wave of AI monetisation lands, the next question is whether enterprises start paying for higher tiers and usage. Clear appetite for premium AI features would move sentiment and establish Zoom as an AI revenue story rather than a cost-neutral AI giveaway.
International acceleration: EMEA and APAC are still growing in low single digits. Any sustained improvement in international enterprise demand over the next few cycles sets up a meaningful rerating because these regions are underpenetrated and strategic for long term expansion.
Key Risks
Key pieces of information about the business risks that you need to know about.
Economic Sensitivity
The SMB and online segment remains the softest part of the business and is still exposed to budget tightening. Any rise in churn or slowdown in new seats can quickly show up in revenue given the subscription model.
Platform Transition Risks
The shift to an AI-first platform raises execution risk around product quality, adoption and monetisation. New AI features must land consistently and deliver clear customer value for the transition to work.
Intense Competition
Microsoft, Google and Cisco continue to push hard with bundled pricing and deep ecosystem integration. Their installed bases give them structural advantages in enterprise accounts.