Zillow Group (NASDAQ:Z) Announces Quarterly Earnings Results, Beats Estimates 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 for the quarter, beating analysts’ consensus estimates of $0.43 by $0.10, FiscalAI reports. Zillow Group had a return on equity of 1.37% and a net margin of 2.27%.The firm had revenue of $708.00 million during the quarter, compared to the consensus estimate of $705.10 million.

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%

NASDAQ Z traded down $2.25 during trading on Friday, reaching $41.43. The company’s stock had a trading volume of 3,859,800 shares, compared to its average volume of 4,113,406. The firm has a 50 day moving average price of $43.70 and a 200 day moving average price of $58.72. Zillow Group has a 12 month low of $39.05 and a 12 month high of $93.88. The firm has a market capitalization of $9.94 billion, a price-to-earnings ratio of 165.72, a price-to-earnings-growth ratio of 2.18 and a beta of 2.07.

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

Analyst Upgrades and Downgrades

Z has been the subject of a number of recent analyst reports. Zelman & Associates raised Zillow Group from a “hold” rating to a “strong-buy” rating in a research report on Thursday, February 12th. Mizuho cut Zillow Group from a “strong-buy” rating to a “hold” rating in a research note on Thursday, January 8th. Needham & Company LLC reaffirmed a “hold” rating on shares of Zillow Group in a report on Wednesday, February 11th. Zacks Research raised shares of Zillow Group from a “hold” rating to a “strong-buy” rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Zillow Group from $84.00 to $76.00 and set an “overweight” rating on the stock in a report on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $79.75.

Insider Buying and Selling

In other news, CTO David A. Beitel sold 3,966 shares of the firm’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 sale, the chief technology officer directly owned 136,690 shares in the company, valued at approximately $6,044,431.80. This trade represents a 2.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Dan Spaulding sold 5,361 shares of the firm’s stock in a transaction that occurred 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 sale, the insider owned 41,080 shares in the company, valued at $1,805,466. This represents a 11.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 60,801 shares of company stock valued at $2,683,986 in the last ninety days. Insiders own 25.03% of the company’s stock.

Institutional Trading of Zillow Group

A number of institutional investors have recently bought and sold shares of Z. IFC & Insurance Marketing Inc. bought a new position in shares of Zillow Group during the 4th quarter worth approximately $68,000. Advisory Services Network LLC acquired a new position in shares of Zillow Group during the 3rd quarter valued at $99,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Zillow Group by 186.3% during 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 acquiring an additional 1,092 shares during the period. Kestra Advisory Services LLC bought a new position in Zillow Group during the fourth quarter worth $153,000. Finally, Lido Advisors LLC bought a new position in Zillow Group during the third quarter worth $212,000. Institutional investors 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.