Zillow Group Reports Strong Q4 2025 Earnings and Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: seekingalpha
- Significant Revenue Growth: Zillow reported an 18% year-over-year increase in total revenue for Q4 2025, reaching $654 million, near the top of its outlook range, with a full-year revenue growth of 16%, demonstrating strong execution and profitability in the real estate market.
- Strong Rental Business: Q4 rental revenue hit $168 million, up 45% year-over-year, with multifamily revenue growing 63%, indicating successful strategic positioning in the rental market, and projecting approximately 30% growth in rental revenue for 2026.
- EBITDA Margin Expansion: Q4 EBITDA was $149 million, with a margin of 23%, reflecting a 260 basis point increase from the previous year, showcasing effective cost management and revenue growth strategies, with continued margin expansion expected in 2026.
- New Product Launch Plans: Zillow Pro is currently in beta testing with plans for nationwide rollout in the second half of the year, aimed at further integrating the real estate transaction process and enhancing client management efficiency to strengthen market competitiveness.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy Z?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on Z
Wall Street analysts forecast Z stock price to rise
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 43.820
Low
70.00
Averages
87.40
High
100.00
Current: 43.820
Low
70.00
Averages
87.40
High
100.00
About Z
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.
Ten Large-Cap Stocks with Worst Performance Last Week
- Astera Labs: Astera Labs (NASDAQ:ALAB) saw a significant decline of 23.74% this week after reporting fourth-quarter financial results that fell short of market expectations, raising investor concerns about its future profitability.
- Medpace Holdings: Medpace Holdings (NASDAQ:MEDP) experienced a slump of 20.69% this week, driven by disappointing fourth-quarter results and multiple analyst firms lowering their price targets, which intensified negative sentiment around the stock.
- Zillow Group: Zillow Group (NASDAQ:Z) decreased by 20.89% this week due to mixed fourth-quarter financial results that failed to boost investor confidence, leading to downward pressure on its stock price.
- AST SpaceMobile: AST SpaceMobile (NASDAQ:ASTS) fell 17.9% this week after announcing a $1 billion convertible senior notes offering, which was met with negative market reactions due to concerns over the implications of its financing plans.
See More
Zillow Stock Outlook: Revenue Beats, EPS Misses
- Earnings Performance: Zillow's fourth-quarter revenue of approximately $654 million slightly exceeded Wall Street expectations, yet the adjusted earnings per share of 39 cents fell short of consensus, indicating pressure on profitability.
- Future Guidance: Management has guided first-quarter revenue to a range of $700 million to $710 million, surpassing market estimates of $690 million, suggesting ongoing top-line growth potential despite challenges.
- Legal Costs and Competitive Pressure: In the near term, legal expenses and new rivals are weighing on Zillow's valuation; however, if legal spending normalizes and the housing market recovers, it could benefit the company in the long run.
- Technical Indicator Analysis: Zillow's RSI stands at 16.12, indicating the stock is in oversold territory, which may suggest a potential reversal; however, the MACD is below its signal line, reinforcing bearish sentiment, prompting traders to remain cautious.
See More
CBRE and Other Real Estate Stocks Decline Amid AI Disruption Fears
- AI Scare Trade Impact: Shares of CBRE, JLL, and Cushman & Wakefield fell on Thursday as investors reassessed the potential disruption of commercial real estate services by rapidly improving AI tools, raising concerns about the future of high-margin advisory services that rely heavily on human labor.
- CBRE Earnings Beat: CBRE Group reported a fourth-quarter adjusted EPS of $2.73, exceeding the consensus estimate of $2.67, although its revenue of approximately $11.63 billion fell slightly short of the expected $11.71 billion, indicating resilience in profitability despite market pressures.
- Optimistic Future Guidance: The company issued FY2026 adjusted EPS guidance of $7.30 to $7.60, with the midpoint above Wall Street estimates, although the stock ultimately closed down about 8% after an initial rise, reflecting market uncertainty about future performance.
- Rising Legal Costs Pressure: Commentary highlighted increasing legal costs and uncertainties related to private listing networks as near-term overhangs, further exacerbating investor concerns regarding the future profitability of real estate service firms.
See More
Zillow Shares Slide Despite Strong Growth and Rental Demand Surge
- Strong Performance: Zillow reported growth that outpaced the overall housing market, yet its shares continue to slide, indicating a market underestimation of its potential, which could undermine investor confidence.
- Surge in Rental Demand: The significant increase in rental usage highlights Zillow's growing ability to aggregate demand in the housing market, laying a foundation for future revenue growth.
- Platform Potential: Should Zillow successfully expand its platform to encompass both renting and buying homes, the upside for its stock could be tremendous, potentially attracting more investor interest.
- Market Misalignment: Despite Zillow's strong performance and robust market demand, the market has failed to adequately reflect these positive factors, which may lead to increased stock price volatility in the short term.
See More
AWS CEO Expresses Strong Confidence in Future Growth
- Cloud Revenue Growth: Amazon's cloud computing segment reported a revenue of $35.6 billion in Q4, reflecting a 24% year-over-year increase that surpassed analyst expectations, showcasing the segment's robust performance and ongoing growth potential in the market.
- Operating Margin Improvement: AWS achieved a 35% operating margin, slightly widening from the previous quarter, indicating positive progress in cost control and efficiency enhancement, thereby strengthening its profitability.
- Impact of AI Technology: AWS CEO Matt Garman stated that while market fears regarding AI models potentially slowing software company growth are overblown, AI is indeed a disruptive force that will change how software is consumed and built, emphasizing the necessity for continuous innovation.
- Growing Customer Demand: Garman highlighted that customer demand for computing technology and infrastructure will continue to rise, whether through self-building, AI-based solutions, or purchasing from SaaS vendors, a trend that will drive AWS's future business expansion.
See More
AWS Chief Claims AI Panic is Overblown Amid SaaS Apocalypse
- Cloud Growth Exceeds Expectations: Amazon Web Services reported a 24% revenue increase in Q4, reaching $35.6 billion, surpassing analyst expectations and demonstrating strong performance in the cloud infrastructure market despite pressures on overall software stocks.
- Market Panic Overreaction: AWS Chief Matt Garman stated that investor fears regarding AI models potentially slowing software company growth are overblown, emphasizing that core business metrics have not deteriorated, reflecting an excessive market reaction to technology stocks.
- AI-Driven Industry Transformation: Garman noted that AI will change how software is consumed and built, and while large SaaS providers face challenges, they still have an advantage in innovation and must continuously evolve to avoid disruption.
- Sustained Customer Demand: AWS anticipates that customers will require more compute technology and infrastructure than ever before, whether self-built, AI-based, or purchased from SaaS vendors, indicating ongoing demand for cloud services and market potential.
See More
Ten Large-Cap Stocks with Worst Performance Last Week
- Astera Labs: Astera Labs (NASDAQ:ALAB) saw a significant decline of 23.74% this week after reporting fourth-quarter financial results that fell short of market expectations, raising investor concerns about its future profitability.
- Medpace Holdings: Medpace Holdings (NASDAQ:MEDP) experienced a slump of 20.69% this week, driven by disappointing fourth-quarter results and multiple analyst firms lowering their price targets, which intensified negative sentiment around the stock.
- Zillow Group: Zillow Group (NASDAQ:Z) decreased by 20.89% this week due to mixed fourth-quarter financial results that failed to boost investor confidence, leading to downward pressure on its stock price.
- AST SpaceMobile: AST SpaceMobile (NASDAQ:ASTS) fell 17.9% this week after announcing a $1 billion convertible senior notes offering, which was met with negative market reactions due to concerns over the implications of its financing plans.
See More
Zillow Stock Outlook: Revenue Beats, EPS Misses
- Earnings Performance: Zillow's fourth-quarter revenue of approximately $654 million slightly exceeded Wall Street expectations, yet the adjusted earnings per share of 39 cents fell short of consensus, indicating pressure on profitability.
- Future Guidance: Management has guided first-quarter revenue to a range of $700 million to $710 million, surpassing market estimates of $690 million, suggesting ongoing top-line growth potential despite challenges.
- Legal Costs and Competitive Pressure: In the near term, legal expenses and new rivals are weighing on Zillow's valuation; however, if legal spending normalizes and the housing market recovers, it could benefit the company in the long run.
- Technical Indicator Analysis: Zillow's RSI stands at 16.12, indicating the stock is in oversold territory, which may suggest a potential reversal; however, the MACD is below its signal line, reinforcing bearish sentiment, prompting traders to remain cautious.
See More
CBRE and Other Real Estate Stocks Decline Amid AI Disruption Fears
- AI Scare Trade Impact: Shares of CBRE, JLL, and Cushman & Wakefield fell on Thursday as investors reassessed the potential disruption of commercial real estate services by rapidly improving AI tools, raising concerns about the future of high-margin advisory services that rely heavily on human labor.
- CBRE Earnings Beat: CBRE Group reported a fourth-quarter adjusted EPS of $2.73, exceeding the consensus estimate of $2.67, although its revenue of approximately $11.63 billion fell slightly short of the expected $11.71 billion, indicating resilience in profitability despite market pressures.
- Optimistic Future Guidance: The company issued FY2026 adjusted EPS guidance of $7.30 to $7.60, with the midpoint above Wall Street estimates, although the stock ultimately closed down about 8% after an initial rise, reflecting market uncertainty about future performance.
- Rising Legal Costs Pressure: Commentary highlighted increasing legal costs and uncertainties related to private listing networks as near-term overhangs, further exacerbating investor concerns regarding the future profitability of real estate service firms.
See More
Zillow Shares Slide Despite Strong Growth and Rental Demand Surge
- Strong Performance: Zillow reported growth that outpaced the overall housing market, yet its shares continue to slide, indicating a market underestimation of its potential, which could undermine investor confidence.
- Surge in Rental Demand: The significant increase in rental usage highlights Zillow's growing ability to aggregate demand in the housing market, laying a foundation for future revenue growth.
- Platform Potential: Should Zillow successfully expand its platform to encompass both renting and buying homes, the upside for its stock could be tremendous, potentially attracting more investor interest.
- Market Misalignment: Despite Zillow's strong performance and robust market demand, the market has failed to adequately reflect these positive factors, which may lead to increased stock price volatility in the short term.
See More
AWS CEO Expresses Strong Confidence in Future Growth
- Cloud Revenue Growth: Amazon's cloud computing segment reported a revenue of $35.6 billion in Q4, reflecting a 24% year-over-year increase that surpassed analyst expectations, showcasing the segment's robust performance and ongoing growth potential in the market.
- Operating Margin Improvement: AWS achieved a 35% operating margin, slightly widening from the previous quarter, indicating positive progress in cost control and efficiency enhancement, thereby strengthening its profitability.
- Impact of AI Technology: AWS CEO Matt Garman stated that while market fears regarding AI models potentially slowing software company growth are overblown, AI is indeed a disruptive force that will change how software is consumed and built, emphasizing the necessity for continuous innovation.
- Growing Customer Demand: Garman highlighted that customer demand for computing technology and infrastructure will continue to rise, whether through self-building, AI-based solutions, or purchasing from SaaS vendors, a trend that will drive AWS's future business expansion.
See More
AWS Chief Claims AI Panic is Overblown Amid SaaS Apocalypse
- Cloud Growth Exceeds Expectations: Amazon Web Services reported a 24% revenue increase in Q4, reaching $35.6 billion, surpassing analyst expectations and demonstrating strong performance in the cloud infrastructure market despite pressures on overall software stocks.
- Market Panic Overreaction: AWS Chief Matt Garman stated that investor fears regarding AI models potentially slowing software company growth are overblown, emphasizing that core business metrics have not deteriorated, reflecting an excessive market reaction to technology stocks.
- AI-Driven Industry Transformation: Garman noted that AI will change how software is consumed and built, and while large SaaS providers face challenges, they still have an advantage in innovation and must continuously evolve to avoid disruption.
- Sustained Customer Demand: AWS anticipates that customers will require more compute technology and infrastructure than ever before, whether self-built, AI-based, or purchased from SaaS vendors, indicating ongoing demand for cloud services and market potential.
See More
