ZoomInfo Shares Drop 14% as 2026 Revenue Guidance Cuts Trigger Analyst Downgrades
ZoomInfo shares plunged 14% after the software firm cut its fiscal 2026 revenue guidance to mid-single-digit growth, citing weaker enterprise demand and extended sales cycles. At least four analysts downgraded the stock to Hold or Sell, slashing average price targets by more than 12%.
1. Full-Year Guidance Cut
ZoomInfo narrowed its fiscal 2026 revenue outlook to a mid-single-digit growth rate, down from the high-teens forecast issued earlier in the year. Management cited softer enterprise spending and longer sales cycles in large deals as the primary drivers of the revised outlook.
2. Analyst Downgrades
Following the guidance revision, at least four major Wall Street firms downgraded the stock from Buy to Hold or Sell. These analysts lowered their 12-month price targets by over 12% on average, pointing to stretched valuation given the softer growth profile.
3. Share Price Reaction
Shares of ZoomInfo tumbled 14% on heavy volume, marking the steepest single-day decline since the company’s Q4 2025 report. The drop erased more than $1.2 billion in market capitalization and drove the stock to its lowest level in three months.