Zillow Group (NASDAQ:Z) Releases Earnings Results, Beats Expectations By $0.10 EPS

Zillow Group (NASDAQ:Z) posted its quarterly earnings results on Wednesday. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.10, FiscalAI reports. The business had revenue of $708.00 million for the quarter, compared to analysts’ expectations of $705.10 million. Zillow Group had a return on equity of 1.37% and a net margin of 2.27%.

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

• Zillow reported strong Q1 results with 18% revenue growth to $708M, EBITDA of $182M above outlook, and net income of $46M, reflecting meaningful margin expansion year‑over‑year.
• Rentals accelerated again, with 42% year‑over‑year revenue growth, 76,000 multifamily properties onboarded and 2.7M average monthly rental listings, reinforcing management’s path to $1B+ annual rentals revenue.
• Zillow Home Loans is scaling quickly — mortgages revenue rose 56% and purchase origination volume jumped 96% to $1.5B, helping Zillow become a top‑25 purchase lender and creating a material long‑term growth/margin opportunity.
• Product and AI momentum: the new AI mode (live for ~5% of users) is showing deeper engagement, while Zillow Preview has rapidly onboarded broker partners and gained a realtor.com distribution pact, boosting Zillow’s integrated platform advantage.
• Near‑term margin headwinds include planned incremental legal costs (management flags ~$20M in Q2 tied to the FTC trial) and higher ad spend, which contribute to a Q2 EBITDA guide below Q1 on a nominal basis.

Zillow Group Stock Performance

Z traded down $2.25 during trading on Friday, reaching $41.43. 3,858,208 shares of the company’s stock were exchanged, compared to its average volume of 4,113,406. The company’s fifty day moving average price is $43.70 and its 200-day moving average price is $58.72. Zillow Group has a fifty-two week low of $39.05 and a fifty-two week high of $93.88. The firm has a market capitalization of $9.94 billion, a PE ratio of 165.72, a P/E/G ratio of 2.18 and a beta of 2.07.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Mizuho cut Zillow Group from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 8th. JPMorgan Chase & Co. dropped their price objective on Zillow Group from $84.00 to $76.00 and set an “overweight” rating for the company in a report on Thursday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Zillow Group in a report on Wednesday, January 21st. Zelman & Associates raised shares of Zillow Group from a “hold” rating to a “strong-buy” rating in a report on Thursday, February 12th. Finally, Zacks Research raised shares of Zillow Group from a “hold” rating to a “strong-buy” rating in a report on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $79.75.

Key Stories Impacting Zillow Group

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

• Positive Sentiment: Q1 results beat expectations, with Zillow reporting $0.53 per share in adjusted earnings versus $0.43 expected and revenue of $708 million, helping reinforce that its core business remains profitable. Zillow Group Reports First-Quarter 2026 Financial Results
• Positive Sentiment: Analysts and commentators highlighted strong growth in for-sale, rentals, and mortgages, with AI-driven tools and deeper monetization supporting Zillow’s long-term transformation into a broader real estate transaction platform. Zillow Q1 Earnings & Revenues Top Estimates on Strong For Sale Growth
• Positive Sentiment: Zacks Research upgraded Zillow from hold to strong-buy, which may have added to sentiment around the stock’s valuation after recent weakness. Zillow Group upgraded by Zacks Research
• Neutral Sentiment: Several bullish commentary pieces argued the company’s earnings power remains intact and that AI fears are overstated, but these were opinion-driven rather than new fundamental catalysts. Zillow Group: AI Fears Are Misplaced
• Neutral Sentiment: Zillow also expanded AI tools and pre-marketing features, which supports the long-term story but is not an immediate revenue driver by itself. Zillow Group leans into AI as revenue climbs 18% in flat housing market
• Negative Sentiment: Multiple law firms launched or continued securities class action investigations into Zillow, creating a legal overhang that can weigh on investor confidence. Rosen Law Firm securities class action investigation
• Negative Sentiment: Investors also reacted to softer guidance and commentary around lower traffic, with reports noting higher profit but declining site/app visits and a less-impressive near-term outlook. Zillow Posts Higher Profit, Lower Traffic in First Quarter
• Negative Sentiment: Several brokerages cut price targets after the report, suggesting analysts think upside is more limited in the near term despite maintaining generally constructive ratings. JPMorgan and KBW price target changes

Insider Activity

In other news, CTO David A. Beitel sold 3,966 shares of the business’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $44.22, for a total value of $175,376.52. Following the completion of the transaction, the chief technology officer owned 136,690 shares of the company’s stock, valued at $6,044,431.80. The trade was a 2.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Dan Spaulding sold 5,361 shares of the business’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $43.95, for a total transaction of $235,615.95. Following the completion of the transaction, the insider directly owned 41,080 shares of the company’s stock, valued at $1,805,466. This trade represents a 11.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 60,801 shares of company stock worth $2,683,986. Corporate insiders own 25.03% of the company’s stock.

Hedge Funds Weigh In On Zillow Group

Institutional investors and hedge funds have recently made changes to their positions in the company. IFC & Insurance Marketing Inc. acquired a new position in shares of Zillow Group in the 4th quarter valued at $68,000. Advisory Services Network LLC acquired a new position in shares of Zillow Group in the 3rd quarter valued at $99,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Zillow Group by 186.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the financial services provider’s stock valued at $118,000 after buying an additional 1,092 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Zillow Group in the 4th quarter valued at $153,000. Finally, EFG International AG acquired a new position in shares of Zillow Group in the 4th quarter valued at $196,000. Institutional investors and hedge funds own 71.01% of the company’s stock.

About Zillow Group

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.