ZoomInfo Downgraded with 4% Revenue Drop Forecast and 20% Workforce Cut
GTM•Jefferies downgraded ZoomInfo to Hold and cut its price target from $12 to $4, forecasting a 4% revenue decline in 2026 and 3% in 2027 as clients shift to building custom workflows. Company will roll out consumption-based pricing, product-led strategy, 20% workforce reduction and incur $45–$60 million in restructuring charges.
1. Jefferies Downgrade and Revised Outlook
Jefferies downgraded ZoomInfo to Hold, cutting its price target to $4 from $12. The firm forecasts revenue declines of 4% in 2026 and 3% in 2027, down from prior low-single-digit growth expectations.
2. Shift to Usage-Based and Product-Led Model
ZoomInfo plans to transition from subscription-based licensing to consumption-based pricing over the next 12–18 months and adopt a product-led growth approach. This strategy responds to client preference for building custom workflows using the company’s data.
3. Restructuring Charges and Cost Savings
The restructuring will include a 20% workforce reduction, affecting around 600 employees, and incur $45–$60 million in charges over the second and third quarters of 2026. The company anticipates more than $60 million in annualized savings and raised its adjusted operating margin guidance to roughly 37%.
