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

Zillow Group (NASDAQ:Z) released its earnings results on Wednesday. The financial services provider reported $0.53 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.10, FiscalAI reports. The company had revenue of $708.00 million during the quarter, compared to the consensus estimate 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 Trading Down 5.2%

Z stock traded down $2.25 during midday trading on Friday, hitting $41.43. The company had a trading volume of 3,858,848 shares, compared to its average volume of 4,113,406. Zillow Group has a 52 week low of $39.05 and a 52 week high of $93.88. The stock’s 50 day moving average price is $43.70 and its 200 day moving average price is $58.72. The stock has a market cap of $9.94 billion, a price-to-earnings ratio of 165.72, a PEG ratio of 2.18 and a beta of 2.07.

Insider Transactions at Zillow Group

In other Zillow Group news, CEO Jeremy Wacksman sold 13,661 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $44.25, for a total value of $604,499.25. Following the completion of the sale, the chief executive officer owned 116,322 shares in the company, valued at approximately $5,147,248.50. The trade was a 10.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO David A. Beitel sold 3,966 shares of the business’s stock in a transaction that occurred 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 sale, 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 SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 60,801 shares of company stock valued at $2,683,986. Insiders own 25.03% of the company’s stock.

Hedge Funds Weigh In On Zillow Group

A number of hedge funds and other institutional investors have recently made changes to their positions in Z. IFC & Insurance Marketing Inc. bought a new position in shares of Zillow Group during the fourth quarter valued at approximately $68,000. Advisory Services Network LLC bought a new position in shares of Zillow Group during the third quarter valued at approximately $99,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Zillow Group by 186.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the financial services provider’s stock valued at $118,000 after acquiring an additional 1,092 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of Zillow Group during the fourth quarter valued at approximately $153,000. Finally, EFG International AG bought a new position in shares of Zillow Group during the fourth quarter valued at approximately $196,000. Institutional investors own 71.01% of the company’s stock.

Trending Headlines about 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

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on Z. JPMorgan Chase & Co. dropped their target price on Zillow Group from $84.00 to $76.00 and set an “overweight” rating for the company in a research report on Thursday. Needham & Company LLC restated a “hold” rating on shares of Zillow Group in a research report on Wednesday, February 11th. Weiss Ratings restated a “sell (d-)” rating on shares of Zillow Group in a research report on Wednesday, January 21st. Zacks Research upgraded Zillow Group from a “hold” rating to a “strong-buy” rating in a research report on Wednesday. Finally, Keefe, Bruyette & Woods dropped their target price on Zillow Group from $60.00 to $50.00 and set a “market perform” rating for the company in a research report on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Zillow Group has an average rating of “Moderate Buy” and a consensus price target of $79.75.

Zillow Group Company Profile

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.