Zillow Group (NASDAQ:Z) Issues Earnings Results, Beats Expectations By $0.07 EPS

Posted by Geri Gentry on Aug 7th, 2026

Zillow Group (NASDAQ:Z – Get Free Report) released its quarterly earnings results on Wednesday. The financial services provider reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.45 by $0.07, FiscalAI reports. Zillow Group had a net margin of 1.96% and a return on equity of 2.27%. The business had revenue of $772.00 million during the quarter, compared to analyst estimates of $758.10 million.

Here are the key takeaways from Zillow Group’s conference call:

Q2 results exceeded expectations: Revenue rose 18% year over year to $772 million, EBITDA reached $176 million, and adjusted net income was $118 million. Zillow generated $223 million in year-to-date free cash flow and raised no changes to its full-year revenue outlook of $2.92 billion to $2.96 billion.
AI and integrated experiences are driving engagement: Users of Zillow AI mode spend more than three times as long on the platform and contact agents at nearly three times the rate of non-users; AI mode is now available to about 20% of signed-in users. Zillow also reported that Zillow Preferred generates 23% more revenue per connection than its legacy model, with the premium expected to reach 35% by year-end.
Rentals and mortgages delivered strong growth: Rentals revenue increased 31%, multifamily revenue rose 42%, and multifamily properties on the platform grew to 79,000. Mortgages revenue jumped 75%, while purchase loan origination volume increased 95% year over year.
The Preferred transition will create near-term revenue headwinds: Zillow expects more than 75% of connections to flow through Preferred by the end of 2026, but the shift in revenue recognition, mortgage origination timing, and seasonality is expected to pressure fourth-quarter For Sale revenue growth by 400–600 basis points. Residential revenue is expected to be flat in Q3 and roughly in line with purchase-mortgage industry growth for the full year.
Zillow eliminated approximately 7% of its workforce, expecting $75 million in annualized EBITDA savings and $140 million including previously planned hiring reductions. The company said the restructuring is intended to improve efficiency without affecting its core growth initiatives, while also consolidating the COO and CFO roles under Jeremy Hofmann.

Zillow Group Stock Down 7.4%

NASDAQ:Z opened at $33.43 on Friday. The business’s 50 day moving average is $33.08 and its two-hundred day moving average is $41.59. Zillow Group has a 52 week low of $29.23 and a 52 week high of $93.88. The company has a market cap of $7.65 billion, a PE ratio of 151.96, a P/E/G ratio of 1.54 and a beta of 1.98.

Key Zillow Group News

Here are the key news stories impacting Zillow Group this week:

Positive Sentiment: Zillow’s second-quarter adjusted earnings of $0.52 per share exceeded estimates of approximately $0.44–$0.45, while revenue of $772 million also topped expectations of about $758 million. Revenue increased 18% year over year. Zillow Q2 earnings report
Positive Sentiment: July home sales rose 7% year over year, the strongest annual gain of 2026, indicating some improvement in housing transaction activity.
Neutral Sentiment: Zillow expanded CFO Jeremy Hofmann’s responsibilities to include chief operating officer and appointed Cassandra Knight as chief legal and policy officer. The changes may support execution of Zillow’s housing “super app,” but also underscore a significant period of organizational change. Zillow executive leadership changes
Negative Sentiment: Zillow forecast third-quarter revenue of $745 million to $760 million, below the $772.3 million consensus estimate, and projected full-year revenue of $2.9 billion to $3.0 billion versus roughly $3.0 billion expected. The soft guidance is the clearest catalyst weighing on the shares. Zillow soft outlook
Negative Sentiment: Despite the adjusted earnings beat, Zillow reported a $4 million net loss as $36 million of restructuring costs reduced profitability. The company also plans to eliminate just over 500 positions, or about 7% of its workforce, amid a flat housing market. Zillow layoffs
Negative Sentiment: Evercore, Sanford C. Bernstein and Zacks Research each downgraded Zillow from “strong buy” to “hold,” adding pressure to investor sentiment after the earnings release.
Negative Sentiment: Several law firms are promoting a securities-fraud class action covering investors who purchased Zillow shares between February 11, 2025, and May 7, 2026. The August 10 lead-plaintiff deadline increases near-term litigation headlines, although the allegations remain unproven. Zillow securities class action

Wall Street Analysts Forecast Growth

Z has been the subject of several recent analyst reports. Jefferies Financial Group lowered their target price on Zillow Group from $75.00 to $60.00 and set a “buy” rating for the company in a research note on Tuesday, July 14th. Wall Street Zen upgraded Zillow Group from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Zacks Research downgraded Zillow Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday. Royal Bank Of Canada lowered their price objective on Zillow Group from $95.00 to $70.00 and set an “outperform” rating for the company in a research note on Wednesday, June 10th. Finally, UBS Group dropped their price objective on Zillow Group from $80.00 to $75.00 and set a “buy” rating on the stock in a report on Tuesday, April 28th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Zillow Group currently has an average rating of “Moderate Buy” and a consensus target price of $68.88.

Read Our Latest Report on Zillow Group

Insiders Place Their Bets

In related news, General Counsel Bradley D. Owens sold 3,364 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $37.23, for a total transaction of $125,241.72. Following the transaction, the general counsel directly owned 65,245 shares in the company, valued at $2,429,071.35. This trade represents a 4.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Erik C. Blachford sold 791 shares of Zillow Group stock in a transaction on Monday, June 8th. The stock was sold at an average price of $34.80, for a total transaction of $27,526.80. Following the completion of the transaction, the director directly owned 34,952 shares of the company’s stock, valued at approximately $1,216,329.60. This represents a 2.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 42,910 shares of company stock worth $1,605,732. Corporate insiders own 25.03% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Compound Planning Inc. grew its position in shares of Zillow Group by 20.4% during the 4th quarter. Compound Planning Inc. now owns 5,528 shares of the financial services provider’s stock valued at $377,000 after buying an additional 937 shares during the last quarter. Invesco Ltd. lifted its holdings in Zillow Group by 10.9% in the fourth quarter. Invesco Ltd. now owns 354,835 shares of the financial services provider’s stock worth $24,207,000 after acquiring an additional 34,977 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in Zillow Group by 19.2% in the fourth quarter. Corient Private Wealth LLC now owns 11,517 shares of the financial services provider’s stock worth $786,000 after acquiring an additional 1,853 shares during the last quarter. Alberta Investment Management Corp boosted its stake in Zillow Group by 23.5% in the fourth quarter. Alberta Investment Management Corp now owns 65,200 shares of the financial services provider’s stock valued at $4,448,000 after acquiring an additional 12,400 shares during the period. Finally, Beacon Pointe Advisors LLC boosted its stake in Zillow Group by 20.2% in the fourth quarter. Beacon Pointe Advisors LLC now owns 6,199 shares of the financial services provider’s stock valued at $423,000 after acquiring an additional 1,043 shares during the period. 71.01% of the stock is currently owned by institutional investors.

Zillow Group Company Profile

(Get Free Report)

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company’s platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company’s automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.