Zillow Reports Q4 Earnings with Mixed Results and Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 10 2026
0mins
Should l Buy ZG?
Source: seekingalpha
Zillow Group Inc (ZG) saw its stock decline by 17.84% as it crossed below the 5-day SMA amid mixed earnings results.
Zillow reported Q4 revenue of $654 million, surpassing expectations of $650 million, but adjusted EPS of $0.39 fell short of the $0.40 consensus. The company provided Q1 revenue guidance of $700 million to $710 million, exceeding analyst estimates, but the mixed results and a rating downgrade by Mizuho amid market uncertainty have raised concerns about investor confidence.
Despite the challenges, Zillow's revenue growth of 18% year-over-year indicates its competitive strength in the residential real estate sector. The company's proactive capital management, including a share buyback, and its focus on sustainable growth through technology innovations may attract investor interest moving forward.
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Analyst Views on ZG
Wall Street analysts forecast ZG stock price to rise
17 Analyst Rating
9 Buy
7 Hold
1 Sell
Moderate Buy
Current: 47.010
Low
66.00
Averages
85.00
High
100.00
Current: 47.010
Low
66.00
Averages
85.00
High
100.00
About ZG
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and buying, selling, financing, and renting experiences. The Company’s affiliates, subsidiaries, and brands include Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, Out East, StreetEasy, HotPads, ShowingTime+, Spruce, and Follow Up Boss. It helps renters, buyers, sellers, and real estate professionals across all their residential real estate needs through its housing super app, which serves as an ecosystem of connected solutions for the tasks and services related to moving. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Follow Up Boss and Spruce. It offers multifamily property managers a variety of advertising products.
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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- Zillow's Market Challenges: Despite achieving 15% to 16% revenue growth over the past two years, Zillow is constrained by high mortgage rates and economic uncertainty, placing its future growth potential at the mercy of macroeconomic factors in a sluggish real estate market.
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- Reddit Revenue Acceleration: Reddit's daily active users reached 121.4 million, a 19% increase year-over-year, with a 70% revenue growth in the latest quarter, showcasing its strong monetization capabilities by keeping the platform free for users and attracting sponsors.
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See More
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- Rising Homebuyer Proportion: Single women account for 25% of first-time homebuyers compared to 10% for single men, a significant increase from 11% and 9% in 1985, indicating a growing recognition of homeownership as a wealth-building tool among women.
- Mismatch of Home Prices and Income: From 2000 to 2024, median household income rose by approximately 155%, while home prices surged by about 207%, creating substantial challenges for single buyers, particularly women relying on a single income to qualify for mortgages.
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- Sales Forecast Downgrade: Zillow initially projected a 4.3% increase in existing home sales for 2026, but rising energy prices and inflation concerns have introduced new uncertainties, potentially reducing the sales growth to just 1.21%.
- New Construction Market Struggles: KB Home has lowered its full-year sales forecast following disappointing quarterly earnings, citing that net orders in Q1 fell below necessary levels, reflecting heightened consumer challenges exacerbated by the Middle East conflict.
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