Zillow Q4 Boost from AI Search, Rentals Growth Fails to Avert 38.9% Stock Slide
In Q4 2025 Zillow’s Residential segment saw improved Premier Agent performance and AI-enabled search tools boosting engagement, while Rentals expanded through multifamily listings. Despite this, Zillow’s stock is down 38.9% over the past year, forward P/S at 3.69 and 2026 EPS estimates have fallen 4.1% in 60 days.
1. Residential Segment Gains
Zillow’s Residential segment delivered solid momentum in Q4 2025, supported by enhanced Premier Agent performance and the rollout of AI-enabled search functionality. Improved touring workflows and partner integrations further increased user engagement and conversion rates across the platform.
2. Rentals Expansion and Financing Integration
The Rentals business benefited from expanded multifamily relationships and a richer listing inventory, driving higher listing volumes. Meanwhile, Zillow Home Loans and tighter coordination between financing, touring and agent connections aim to boost transaction attachment rates within the housing super app ecosystem.
3. Valuation Pressure and Outlook
Zillow’s stock has declined 38.9% over the past year, trading at a forward 12-month P/S of 3.69. Analysts have trimmed 2026 EPS estimates by 4.1% in the past 60 days, reflecting ongoing affordability pressures and muted transaction volumes in the housing market.