ZoomInfo Shares Slide Over 6% After 1% Growth Guidance Sparks Downgrades
ZoomInfo reported fourth-quarter revenue and EPS above estimates yet guided just 1% full-year revenue growth at midpoint, sending shares down over 6% midday and prompting Citizens JMP to downgrade to Market Underperform. RBC Capital and others trimmed price targets, citing intensifying competition and a persistent 90% net retention rate.
1. Q4 Financial Performance
ZoomInfo delivered fourth-quarter revenue and EPS that exceeded consensus, underscoring steady demand for its sales intelligence platform.
2. 2026 Growth Outlook
Management issued full-year 2026 guidance projecting approximately 1% revenue growth at the midpoint, signaling a material deceleration from recent trends and tempering investor expectations.
3. Analyst Downgrades and Target Cuts
Citizens JMP Securities downgraded the stock to Market Underperform over intensifying competition and concerns about a 90% net retention rate, while RBC Capital and other firms lowered price targets, labeling the outlook underwhelming.
4. Market Reaction
Shares plunged over 6% in afternoon trading, marking the 26th move greater than 5% in the past year; the stock is down 31% year-to-date and trading nearly 46% below its 52-week high.