ZoomInfo Q1 Earnings Preview Indicates Potential Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 09 2025
0mins
Should l Buy GTM?
Source: SeekingAlpha
ZoomInfo Technologies Inc. has seen its stock price drop 5.33% as it hits a 5-day low amid broader market gains, with the Nasdaq-100 up 0.42% and S&P 500 up 0.40%.
The company is set to report its Q1 earnings on May 11th, with analysts expecting earnings of 26 cents per share and revenue of $307.95 million. This anticipated performance reflects strong demand in the data analytics sector, which could bolster investor confidence despite the recent stock decline. Additionally, the mixed revisions in EPS and revenue estimates indicate a cautious market sentiment.
Investors are closely monitoring ZoomInfo's upcoming earnings report, as its historical performance shows a high rate of exceeding estimates, which may provide a catalyst for recovery in its stock price.
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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: 6.040
Low
8.00
Averages
12.13
High
15.00
Current: 6.040
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.
ZoomInfo Q1 Earnings Preview and Performance Review
- Earnings Announcement Schedule: ZoomInfo is set to release its Q1 earnings on May 11th after market close, with consensus EPS estimated at $0.26, reflecting a 13% year-over-year increase, and revenue expected at $307.95 million, up 0.7% year-over-year, which could significantly impact the stock price.
- Historical Performance: Over the past two years, ZoomInfo has exceeded EPS and revenue estimates 88% of the time, indicating strong performance in profitability and market expectation management, thereby boosting investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 7 upward and 7 downward revisions, while revenue estimates experienced 12 upward and 8 downward revisions, reflecting mixed market sentiment regarding the company's future performance, which may influence investor decisions.
- Future Growth Targets: ZoomInfo aims for 1% annual revenue growth in 2026 while intensifying its AI-driven upmarket strategy, which is expected to help the company maintain growth momentum in a competitive market.
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
Under Armour Reports Loss, Shares Drop 14%
- Earnings Loss: Under Armour reported a loss of 3 cents per share on revenue of $1.17 billion, significantly missing analyst expectations of a 2-cent loss and $1.68 billion in revenue, resulting in a 14% drop in stock price, highlighting the challenges the company faces in a competitive market.
- Acquisition Rejection: GameStop shares fell over 4% after eBay rejected its $56 billion takeover bid due to financing concerns, negatively impacting market confidence in GameStop's strategic direction.
- Strong Performance: On Holding's stock fell 5% in premarket trading despite reporting first-quarter earnings and revenue that exceeded analyst expectations, while reiterating its full-year net sales growth outlook, indicating resilience in its business model.
- Significant Stock Movement: Wendy's shares surged over 23% following reports that Trian Fund Management is raising funds for a bid to take the fast-food chain private, reflecting optimistic market sentiment regarding its privatization potential.
See More
ZoomInfo Technologies Q1 2026 Earnings Call Insights
- Revenue and Adjusted Operating Income: ZoomInfo reported Q1 2026 revenue of $310 million, exceeding analyst expectations of $307.9 million, with adjusted operating income at $110 million, indicating resilience in profitability despite challenging macro conditions.
- Market Demand Slowdown: Although the first quarter performance surpassed expectations, CEO Henry Schuck noted a purchasing decision pause among customers, particularly in software, due to worsening macroeconomic conditions, prompting a downward revision of the full-year revenue guidance.
- Employee Layoffs and Restructuring: The company announced a 20% workforce reduction, affecting 600 employees, alongside the closure of its Israel facilities, with expected restructuring costs between $45 million and $60 million, aimed at enhancing operational efficiency and achieving higher margins.
- New Pricing Model: ZoomInfo plans to roll out a hybrid pricing model in Q3 that combines a low annual platform fee with pre-purchase credits, aiming to increase the proportion of annual contract value not tied to seats from one-third to nearly fifty-fifty over the next 18 to 24 months, thereby enhancing customer retention and revenue stability.
See More
ZoomInfo Expected to Report Q1 Earnings of 26 Cents per Share
- Earnings Expectation: ZoomInfo Technologies is expected to report earnings of 26 cents per share for Q1, indicating the company's potential to maintain profitability in a growing market despite ongoing economic uncertainties.
- Revenue Forecast: The company anticipates Q1 revenue of $307.95 million, reflecting strong demand in the data analytics and market intelligence sectors, which could lay the groundwork for future growth.
- Analyst Ratings: Analysts have provided ratings and price targets for ZoomInfo, indicating investor interest in its future performance, which may influence stock price volatility.
- Market Reaction: As the earnings report approaches, investors and analysts will closely monitor ZoomInfo's performance to assess its position and prospects in a competitive market.
See More
ZoomInfo Q1 Earnings Preview and Performance Review
- Earnings Announcement Schedule: ZoomInfo is set to release its Q1 earnings on May 11th after market close, with consensus EPS estimated at $0.26, reflecting a 13% year-over-year increase, and revenue expected at $307.95 million, up 0.7% year-over-year, which could significantly impact the stock price.
- Historical Performance: Over the past two years, ZoomInfo has exceeded EPS and revenue estimates 88% of the time, indicating strong performance in profitability and market expectation management, thereby boosting investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 7 upward and 7 downward revisions, while revenue estimates experienced 12 upward and 8 downward revisions, reflecting mixed market sentiment regarding the company's future performance, which may influence investor decisions.
- Future Growth Targets: ZoomInfo aims for 1% annual revenue growth in 2026 while intensifying its AI-driven upmarket strategy, which is expected to help the company maintain growth momentum in a competitive market.
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
Under Armour Reports Loss, Shares Drop 14%
- Earnings Loss: Under Armour reported a loss of 3 cents per share on revenue of $1.17 billion, significantly missing analyst expectations of a 2-cent loss and $1.68 billion in revenue, resulting in a 14% drop in stock price, highlighting the challenges the company faces in a competitive market.
- Acquisition Rejection: GameStop shares fell over 4% after eBay rejected its $56 billion takeover bid due to financing concerns, negatively impacting market confidence in GameStop's strategic direction.
- Strong Performance: On Holding's stock fell 5% in premarket trading despite reporting first-quarter earnings and revenue that exceeded analyst expectations, while reiterating its full-year net sales growth outlook, indicating resilience in its business model.
- Significant Stock Movement: Wendy's shares surged over 23% following reports that Trian Fund Management is raising funds for a bid to take the fast-food chain private, reflecting optimistic market sentiment regarding its privatization potential.
See More
ZoomInfo Technologies Q1 2026 Earnings Call Insights
- Revenue and Adjusted Operating Income: ZoomInfo reported Q1 2026 revenue of $310 million, exceeding analyst expectations of $307.9 million, with adjusted operating income at $110 million, indicating resilience in profitability despite challenging macro conditions.
- Market Demand Slowdown: Although the first quarter performance surpassed expectations, CEO Henry Schuck noted a purchasing decision pause among customers, particularly in software, due to worsening macroeconomic conditions, prompting a downward revision of the full-year revenue guidance.
- Employee Layoffs and Restructuring: The company announced a 20% workforce reduction, affecting 600 employees, alongside the closure of its Israel facilities, with expected restructuring costs between $45 million and $60 million, aimed at enhancing operational efficiency and achieving higher margins.
- New Pricing Model: ZoomInfo plans to roll out a hybrid pricing model in Q3 that combines a low annual platform fee with pre-purchase credits, aiming to increase the proportion of annual contract value not tied to seats from one-third to nearly fifty-fifty over the next 18 to 24 months, thereby enhancing customer retention and revenue stability.
See More
ZoomInfo Expected to Report Q1 Earnings of 26 Cents per Share
- Earnings Expectation: ZoomInfo Technologies is expected to report earnings of 26 cents per share for Q1, indicating the company's potential to maintain profitability in a growing market despite ongoing economic uncertainties.
- Revenue Forecast: The company anticipates Q1 revenue of $307.95 million, reflecting strong demand in the data analytics and market intelligence sectors, which could lay the groundwork for future growth.
- Analyst Ratings: Analysts have provided ratings and price targets for ZoomInfo, indicating investor interest in its future performance, which may influence stock price volatility.
- Market Reaction: As the earnings report approaches, investors and analysts will closely monitor ZoomInfo's performance to assess its position and prospects in a competitive market.
See More
