ZOOMINFO Technologies (GTM) Earnings Date & Reports
ZoomInfo Technologies Inc provides a go-to-market intelligence platform... Show more
GTM is expected to report earnings to fall 5.50% to 26 cents per share on August 03
ZoomInfo Technologies (GTM) Q1 2026 Earnings Recap: Beats Estimates but Slashes Full-Year Outlook
Key Takeaways
- ZoomInfo reported Q1 2026 revenue of $310.2 million, up 1.5% year-over-year and beating consensus estimates of approximately $308 million.
- Adjusted EPS came in at $0.28, surpassing expectations of $0.26, while GAAP EPS was $0.10.
- Adjusted operating income margin expanded to 35%, up from 33% a year ago, with strong unlevered free cash flow of $119.7 million.
- Net revenue retention held steady at 90%, but full-year 2026 revenue guidance was cut to $1.185–$1.205 billion, implying a 4% decline at the midpoint.
- Shares plunged over 30% in post-earnings trading due to the lowered outlook and strategic shifts including a 20% workforce reduction.
- Upmarket annual contract value (ACV) grew 5% year-over-year, supporting 1,900 customers with $100,000+ ACV.
Earnings Context and Why It Matters
ZoomInfo Technologies (GTM), a leading go-to-market intelligence platform, released its first quarter 2026 results on May 11, 2026, amid macroeconomic headwinds and AI-driven disruptions in sales and marketing tech. Investors closely watched for signs of stabilization after prior quarters of decelerating growth and downmarket weakness. This report matters as it highlights resilience in upmarket segments—75% of ACV—while revealing pressures from customer uncertainty and pricing model transitions. With net retention at 90% for the third straight quarter, the results underscore ZoomInfo's focus on efficiency and cash generation, but the guidance cut signals near-term challenges in a tough environment for B2B software providers.
ZoomInfo delivered Q1 revenue of $310.2 million for the quarter ended March 31, 2026, a 1.5% increase from $305.7 million in Q1 2025 and above consensus estimates of $307.95–$308 million.+Tops+Q1+EPS+by+2c,+offers+EPS+guidance+below+consensus/26469190.html) GAAP operating income rose 15% to $57.9 million (19% margin), while adjusted operating income increased 9% to $109.7 million (35% margin, up from 33%).
GAAP diluted EPS was $0.10, up from $0.08 year-over-year, and adjusted diluted EPS of $0.28 beat expectations of $0.26. Key metrics included net revenue retention (NRR) of 90%, consistent sequentially, and upmarket ACV growth of 5%. Customer count at $100,000+ ACV stood at 1,900, up 32 year-over-year but down 21 sequentially. Cash from operations was $114.7 million, supporting unlevered free cash flow of $119.7 million; the company repurchased $90.5 million in shares.
While Q1 results topped prior company guidance and Street estimates, Q2 guidance of $300–$303 million revenue and FY 2026 guidance well below prior ranges ($1.185–$1.205 billion revenue vs. previous $1.247–$1.267 billion) reflected conservatism amid transitions.
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Market Reaction and Investor Sentiment
Despite Q1 beats, GTM shares tumbled over 30% in post-earnings trading on May 12, 2026, from $6.04 to around $3.94, reflecting investor disappointment with the sharply reduced FY 2026 guidance—implying a 4% revenue decline—and announcements of a 20% workforce cut plus a shift to consumption-based pricing. High trading volume exceeded 26 million shares, signaling broad selloff. Analysts like DA Davidson cut price targets (e.g., to $5 from $7), maintaining Neutral ratings amid concerns over macro pressures and AI uncertainty, though some noted undervaluation potential.
Forward Outlook and Key Factors to Monitor
ZoomInfo's updated FY 2026 guidance projects revenue of $1.185–$1.205 billion, adjusted operating income of $437–$447 million (37% margin midpoint), adjusted EPS of $1.10–$1.12, and unlevered free cash flow of $400–$420 million. Q2 revenue is guided at $300–$303 million with adjusted operating income of $103–$106 million. These figures incorporate conservatism for macroeconomic fluctuations and execution risks from strategic shifts.
Investors should track progress on upmarket expansion, where ACV grew 5% year-over-year, and NRR stability at 90%. The transition to consumption-based pricing and 20% workforce reduction aim to boost efficiency but may create near-term headwinds in downmarket segments.
Broader dynamics include AI adoption impacts on sales workflows and competitive positioning, as evidenced by top rankings in G2 and Forrester reports. Share repurchases remain active, with over $1 billion authorization left. Upcoming catalysts: Q2 results in August and product innovations like ZoomInfo Copilot.
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General Information
a holding company which provides cloud based platform that offers information on the organizations and professionals for sales and marketing teams
Industry PackagedSoftware