ZoomInfo Reports Strong Q4 Results but Weak Forward Guidance Leads to Stock Sell-Off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy GTM?
Source: Fool
- Strong Q4 Performance: ZoomInfo reported non-GAAP earnings per share of $0.32 and sales of $319.1 million in Q4, surpassing Wall Street's expectations of $0.28 and $309.3 million, indicating robust market competitiveness.
- Weak Sales Outlook: Despite a 3.2% year-over-year revenue increase in Q4, the company projects current quarter sales between $306 million and $309 million, reflecting a significant sequential decline that may undermine investor confidence.
- Declining Operating Income: ZoomInfo anticipates adjusted operating income to fall between $105 million and $108 million, a decrease from the previous year, prompting a potential reevaluation of the company's future performance by the market.
- Cautious Annual Targets: Management's full-year sales guidance of $1.247 billion to $1.267 billion suggests only modest improvement, with a growth forecast of approximately 3.6% that may not meet market expectations for higher growth.
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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: 6.300
Low
8.00
Averages
12.13
High
15.00
Current: 6.300
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 Reports Strong Q4 Results but Weak Forward Guidance Leads to Stock Sell-Off
- Strong Q4 Performance: ZoomInfo reported non-GAAP earnings per share of $0.32 and sales of $319.1 million in Q4, surpassing Wall Street's expectations of $0.28 and $309.3 million, indicating robust market competitiveness.
- Weak Sales Outlook: Despite a 3.2% year-over-year revenue increase in Q4, the company projects current quarter sales between $306 million and $309 million, reflecting a significant sequential decline that may undermine investor confidence.
- Declining Operating Income: ZoomInfo anticipates adjusted operating income to fall between $105 million and $108 million, a decrease from the previous year, prompting a potential reevaluation of the company's future performance by the market.
- Cautious Annual Targets: Management's full-year sales guidance of $1.247 billion to $1.267 billion suggests only modest improvement, with a growth forecast of approximately 3.6% that may not meet market expectations for higher growth.
See More
ZoomInfo Q4 Sales Beat Expectations but Guidance Disappoints
- Strong Q4 Performance: ZoomInfo reported adjusted earnings per share of $0.32 and sales of $319.1 million in Q4, both exceeding Wall Street's expectations of $0.28 and $309.3 million, indicating robust market performance.
- Revenue Growth: The company's revenue increased by 3.2% year-over-year, while adjusted operating income rose approximately 6% to $122.6 million, reflecting progress in business expansion.
- Disappointing Guidance: Despite the strong Q4 results, management's guidance for current quarter sales between $306 million and $309 million indicates a significant sequential decline, raising investor concerns and leading to a stock price drop.
- Cautious Annual Targets: Management is targeting full-year sales between $1.247 billion and $1.267 billion, slightly above last year's $1.25 billion, but the adjusted operating profit guidance of $456 million to $466 million suggests only a modest 3.6% growth, highlighting weak growth prospects.
See More
ZoomInfo Reports Strong Q4 Earnings, Adjusts Guidance
- Earnings Beat: ZoomInfo reported Q4 earnings of $0.32 per share, surpassing the Street estimate of $0.28, indicating enhanced profitability and solidifying its market position.
- Revenue Growth: The company achieved quarterly revenue of $319.1 million, exceeding the consensus estimate of $309.4 million, reflecting strong demand for its products and services, which drives overall business growth.
- Future Guidance: ZoomInfo projects FY2026 adjusted EPS between $1.10 and $1.12, slightly above the market estimate of $1.10, while expecting sales of $1.247 billion to $1.267 billion, demonstrating confidence in future growth.
- Stock Price Reaction: Despite the strong performance, ZoomInfo shares dipped 22.5% to $5.66 in pre-market trading, reflecting market reactions to analysts lowering their price targets, which may impact investor confidence.
See More
Market Movers: AAppLovin, TSMC, BP, ON Semi, Credo, Upwork, ZoomInfo, and Others
- Stock Market Performance: Stock futures rose modestly on Tuesday, indicating a positive trend in the market.
- Tech Sector Influence: The increase in stock futures is attributed to a recent comeback in the technology sector, which has driven equities higher over the past two sessions.
See More
ZoomInfo Reports Record Q4 2025 Revenue and Profitability
- 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.
See More
ZoomInfo Technologies Reports Strong Quarterly Earnings Exceeding Expectations
- Earnings Beat: ZoomInfo Technologies reported earnings of 32 cents per share, surpassing the Street estimate of 28 cents, indicating enhanced profitability that is likely to positively impact stock prices.
- Revenue Growth: The quarterly revenue reached $319.1 million, exceeding the consensus estimate of $309.4 million, reflecting the company's sustained competitive strength in the market, which may attract more investor interest.
- Customer Base Expansion: As of December 31, 2025, ZoomInfo had 1,921 customers with an Annual Contract Value over $100,000, an increase of 34 from the previous quarter and 54 year-over-year, showcasing the company's success in acquiring high-value clients.
- Stable Net Revenue Retention: ZoomInfo's net revenue retention rate stood at 90%, indicating strong performance in customer retention and revenue growth, suggesting continued stability in cash flow and profitability moving forward.
See More
ZoomInfo Reports Strong Q4 Results but Weak Forward Guidance Leads to Stock Sell-Off
- Strong Q4 Performance: ZoomInfo reported non-GAAP earnings per share of $0.32 and sales of $319.1 million in Q4, surpassing Wall Street's expectations of $0.28 and $309.3 million, indicating robust market competitiveness.
- Weak Sales Outlook: Despite a 3.2% year-over-year revenue increase in Q4, the company projects current quarter sales between $306 million and $309 million, reflecting a significant sequential decline that may undermine investor confidence.
- Declining Operating Income: ZoomInfo anticipates adjusted operating income to fall between $105 million and $108 million, a decrease from the previous year, prompting a potential reevaluation of the company's future performance by the market.
- Cautious Annual Targets: Management's full-year sales guidance of $1.247 billion to $1.267 billion suggests only modest improvement, with a growth forecast of approximately 3.6% that may not meet market expectations for higher growth.
See More
ZoomInfo Q4 Sales Beat Expectations but Guidance Disappoints
- Strong Q4 Performance: ZoomInfo reported adjusted earnings per share of $0.32 and sales of $319.1 million in Q4, both exceeding Wall Street's expectations of $0.28 and $309.3 million, indicating robust market performance.
- Revenue Growth: The company's revenue increased by 3.2% year-over-year, while adjusted operating income rose approximately 6% to $122.6 million, reflecting progress in business expansion.
- Disappointing Guidance: Despite the strong Q4 results, management's guidance for current quarter sales between $306 million and $309 million indicates a significant sequential decline, raising investor concerns and leading to a stock price drop.
- Cautious Annual Targets: Management is targeting full-year sales between $1.247 billion and $1.267 billion, slightly above last year's $1.25 billion, but the adjusted operating profit guidance of $456 million to $466 million suggests only a modest 3.6% growth, highlighting weak growth prospects.
See More
ZoomInfo Reports Strong Q4 Earnings, Adjusts Guidance
- Earnings Beat: ZoomInfo reported Q4 earnings of $0.32 per share, surpassing the Street estimate of $0.28, indicating enhanced profitability and solidifying its market position.
- Revenue Growth: The company achieved quarterly revenue of $319.1 million, exceeding the consensus estimate of $309.4 million, reflecting strong demand for its products and services, which drives overall business growth.
- Future Guidance: ZoomInfo projects FY2026 adjusted EPS between $1.10 and $1.12, slightly above the market estimate of $1.10, while expecting sales of $1.247 billion to $1.267 billion, demonstrating confidence in future growth.
- Stock Price Reaction: Despite the strong performance, ZoomInfo shares dipped 22.5% to $5.66 in pre-market trading, reflecting market reactions to analysts lowering their price targets, which may impact investor confidence.
See More
Market Movers: AAppLovin, TSMC, BP, ON Semi, Credo, Upwork, ZoomInfo, and Others
- Stock Market Performance: Stock futures rose modestly on Tuesday, indicating a positive trend in the market.
- Tech Sector Influence: The increase in stock futures is attributed to a recent comeback in the technology sector, which has driven equities higher over the past two sessions.
See More
ZoomInfo Reports Record Q4 2025 Revenue and Profitability
- 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.
See More
ZoomInfo Technologies Reports Strong Quarterly Earnings Exceeding Expectations
- Earnings Beat: ZoomInfo Technologies reported earnings of 32 cents per share, surpassing the Street estimate of 28 cents, indicating enhanced profitability that is likely to positively impact stock prices.
- Revenue Growth: The quarterly revenue reached $319.1 million, exceeding the consensus estimate of $309.4 million, reflecting the company's sustained competitive strength in the market, which may attract more investor interest.
- Customer Base Expansion: As of December 31, 2025, ZoomInfo had 1,921 customers with an Annual Contract Value over $100,000, an increase of 34 from the previous quarter and 54 year-over-year, showcasing the company's success in acquiring high-value clients.
- Stable Net Revenue Retention: ZoomInfo's net revenue retention rate stood at 90%, indicating strong performance in customer retention and revenue growth, suggesting continued stability in cash flow and profitability moving forward.
See More
