ZoomInfo Reports Record Q4 2025 Revenue and Profitability
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy GTM?
Source: seekingalpha
- Record Quarterly Revenue: ZoomInfo achieved $319 million in revenue for Q4 2025, a 3% year-over-year increase that exceeded expectations, with full-year revenue reaching $1.25 billion, showcasing the company's strong performance and growth potential in the market.
- Improved Operating Margin: The adjusted operating income for Q4 was $123 million, resulting in a 38% operating margin, reflecting the company's success in cost control and efficiency improvements, further solidifying its competitive position in the software industry.
- Customer Base Expansion: The company now has 1,921 customers with annual contract values exceeding $100,000, marking seven consecutive quarters of growth, indicating ZoomInfo's increasing appeal and market penetration among high-value customer segments.
- Shareholder Return Plan: ZoomInfo announced an additional $1 billion share repurchase authorization, having already repurchased nearly a quarter of its shares since the beginning of 2023, demonstrating the company's confidence in future cash flows and shareholder value.
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Analyst Views on GTM
Wall Street analysts forecast GTM stock price to rise
14 Analyst Rating
3 Buy
7 Hold
4 Sell
Hold
Current: 3.900
Low
8.00
Averages
12.13
High
15.00
Current: 3.900
Low
8.00
Averages
12.13
High
15.00
About GTM
ZoomInfo Technologies Inc. provides a go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals. Its cloud-based platform provides workflow tools with integrated and comprehensive information on organizations and professionals to help users identify target customers and decision makers. Its cloud-based operating system for revenue professionals delivers comprehensive intelligence and analytics to provide sales, marketing, operations, and recruiting professionals accurate information and insights on the organizations and professionals they target. It delivers intelligence at scale by leveraging an AI and ML-powered engine that gathers data from millions of sources and standardizes, matches to entities, verifies, cleans, and applies the processed data to companies and people at scale. The Company aggregates and extracts distinct types of data, such as revenue, locations, technologies, keywords, contact information, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Operating Income Improvement: GAAP operating income rose 15% to $57.9 million with a 19% margin, while adjusted operating income grew 9% to $109.7 million, yielding a 35% margin, demonstrating effective management in cost control and profitability.
- Customer Base Fluctuation: The company closed the quarter with 1,900 customers contributing $100,000 or more in ACV, an increase of 32 clients year-over-year but a sequential decline of 21 from the prior quarter, indicating volatility in customer acquisition that may impact future revenue stability.
- Financial Outlook Downgrade: ZoomInfo lowered its full-year 2026 GAAP revenue expectations to a range of $1.185 to $1.205 billion, down from previous guidance, reflecting uncertainties in the market environment and challenges faced by the company.
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- Layoff Announcement: The company announced a restructuring plan that will eliminate around 600 positions, or about 20% of its workforce, aimed at reducing costs in response to declining revenues, which may impact employee morale and operational efficiency.
- Stock Price Plunge: Following this news, ZoomInfo's stock price fell by $1.98 per share, or 32.78%, closing at $4.06 per share on May 12, 2026, reflecting a pessimistic market outlook on the company's future prospects.
- Analyst Downgrades: Multiple analysts downgraded ZoomInfo's ratings after the revenue warning, indicating heightened concerns about the company's financial health, which could further erode investor confidence.
See More
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- Stock Plunge: Following the significant guidance cut, ZoomInfo's stock price plummeted by 33%, resulting in shareholders losing approximately 33% of their investment value in a short period, reflecting a pessimistic market outlook on the company's future.
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- Legal Investigation Initiated: Levi & Korsinsky LLP has launched an investigation into potential securities law violations by ZoomInfo, encouraging affected investors to submit their information, which may lead to legal liabilities for the company and further impact its stock price.
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- Customer Count Fluctuation: The number of large customers increased by 32 year-over-year to 1,900, yet saw a sequential drop of 21, raising investor concerns about the stability of its customer base, which could impact future revenue growth.
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See More
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- Market Sentiment Shift: Despite the bearish outlook from analysts, retail sentiment on Stocktwits has improved from 'neutral' to 'extremely bullish', indicating that some investors believe the recent sell-off is unwarranted and are optimistic about the stock's potential recovery.
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See More
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- Hub Group Financial Restatement: Hub Group's shares fell over 10% after announcing a restatement of its year-end 2023 and 2024 results, which may negatively impact investor confidence.
See More
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- Revenue Growth: ZoomInfo reported Q1 2026 GAAP revenue of $310.2 million, reflecting a 1.5% year-over-year increase, indicating the company's stability in the market despite slow growth, which lays a foundation for future expansion.
- Operating Income Improvement: GAAP operating income rose 15% to $57.9 million with a 19% margin, while adjusted operating income grew 9% to $109.7 million, yielding a 35% margin, demonstrating effective management in cost control and profitability.
- Customer Base Fluctuation: The company closed the quarter with 1,900 customers contributing $100,000 or more in ACV, an increase of 32 clients year-over-year but a sequential decline of 21 from the prior quarter, indicating volatility in customer acquisition that may impact future revenue stability.
- Financial Outlook Downgrade: ZoomInfo lowered its full-year 2026 GAAP revenue expectations to a range of $1.185 to $1.205 billion, down from previous guidance, reflecting uncertainties in the market environment and challenges faced by the company.
See More
ZoomInfo Lowers 2026 Revenue Guidance Significantly
- Revenue Guidance Cut: ZoomInfo has significantly lowered its full-year 2026 revenue guidance to a range of $1.185 billion to $1.205 billion, which is well below the consensus estimate of $1.26 billion, implying a revenue decline of approximately 4% compared to previous modest growth expectations.
- Layoff Announcement: The company announced a restructuring plan that will eliminate around 600 positions, or about 20% of its workforce, aimed at reducing costs in response to declining revenues, which may impact employee morale and operational efficiency.
- Stock Price Plunge: Following this news, ZoomInfo's stock price fell by $1.98 per share, or 32.78%, closing at $4.06 per share on May 12, 2026, reflecting a pessimistic market outlook on the company's future prospects.
- Analyst Downgrades: Multiple analysts downgraded ZoomInfo's ratings after the revenue warning, indicating heightened concerns about the company's financial health, which could further erode investor confidence.
See More
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- Guidance Revision: ZoomInfo revised its FY 2026 revenue guidance down by nearly 5% during the Q1 earnings call, now expecting revenue between $1.185 billion and $1.205 billion, indicating a slowdown in growth trends that directly impacts investor confidence.
- Stock Plunge: Following the significant guidance cut, ZoomInfo's stock price plummeted by 33%, resulting in shareholders losing approximately 33% of their investment value in a short period, reflecting a pessimistic market outlook on the company's future.
- Financial Performance Insight: Although CFO Graham O'Brien described Q1 as a “solid quarter,” he acknowledged that the improving trends from 2025 are starting to moderate, suggesting increasing market challenges that could affect future profitability.
- Legal Investigation Initiated: Levi & Korsinsky LLP has launched an investigation into potential securities law violations by ZoomInfo, encouraging affected investors to submit their information, which may lead to legal liabilities for the company and further impact its stock price.
See More
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- Disappointing Earnings: ZoomInfo's Q1 revenue slightly exceeded $310 million, marking a 1.5% year-over-year increase, yet fell short of analyst expectations, leading to a nearly 33% stock plunge that reflects market concerns about future growth.
- Net Income Pressure: The non-GAAP net income rose nearly 7% to $87.5 million, with earnings per share at $0.28, but still underperformed against the analyst forecast of $0.26, indicating pressure on the company's profitability.
- Customer Count Fluctuation: The number of large customers increased by 32 year-over-year to 1,900, yet saw a sequential drop of 21, raising investor concerns about the stability of its customer base, which could impact future revenue growth.
- Guidance Downgrade: Management revised its 2026 revenue guidance down to approximately $1.19 billion to $1.2 billion, significantly lower than the previous forecast of $1.25 billion to $1.27 billion, reflecting a cautious outlook on future market conditions.
See More
ZoomInfo Stock Downgraded Amid Lowered Expectations
- Rating Downgrade Impact: Canaccord analyst David Hyned downgraded ZoomInfo's stock from 'Buy' to 'Hold' and lowered the price target from $12 to $5, reflecting a pessimistic outlook on the company's near-term recovery, with expectations of returning to positive growth not until the second half of 2027.
- Mixed Earnings Reaction: Citizens noted that ZoomInfo's first-quarter results were disappointing, leading to significant reductions in revenue and net income expectations for 2026, primarily due to increased customer confusion and macroeconomic uncertainty, highlighting the challenges the company faces.
- Market Sentiment Shift: Despite the bearish outlook from analysts, retail sentiment on Stocktwits has improved from 'neutral' to 'extremely bullish', indicating that some investors believe the recent sell-off is unwarranted and are optimistic about the stock's potential recovery.
- Revenue Guidance Cut: ZoomInfo has revised its full-year revenue guidance down to $1.185 billion to $1.205 billion, from a previous range of $1.247 billion to $1.267 billion, reflecting the pressures and challenges the company faces as it transitions to a consumption-based model.
See More
Significant Stock Movements for Vestis and Others
- Vestis Earnings Beat: Vestis surged over 30% after reporting fiscal Q2 results that exceeded expectations, along with an upward revision of its fiscal 2026 EBITDA outlook, indicating strong growth potential in the apparel sector.
- Zebra's Strong Performance: Zebra Technologies reported Q1 earnings of $4.75 per share, surpassing the $4.25 expected by analysts, with revenues of $1.5 billion, and Q2 guidance also exceeded estimates, highlighting ongoing growth in the automation sector.
- Ralliant's Earnings Surprise: Ralliant's adjusted Q1 earnings of 57 cents per share exceeded both company guidance and FactSet consensus of 49 cents, leading to a 14% stock increase, reflecting robust demand in the high-precision instruments market.
- Hub Group Financial Restatement: Hub Group's shares fell over 10% after announcing a restatement of its year-end 2023 and 2024 results, which may negatively impact investor confidence.
See More
