GET DAILY SIGNALSZoomInfo (GTM) Delivers Q3 Revenue Beat While Navigating a 2.9% Decline
Key Takeaways
- ZoomInfo reported Q3 2026 revenue of $308.8 million, beating the consensus estimate of $299.7 million but falling 2.9% year over year.
- Adjusted (non-GAAP) earnings per share came in at $0.29, in line with analysts' consensus of $0.29.
- Adjusted operating income of $119.1 million (a 38.6% margin) exceeded the consensus estimate of $114.3 million.
- Fourth-quarter revenue guidance of $295.5 million at the midpoint landed slightly above the $291.9 million consensus.
- Management raised full-year adjusted EPS guidance to $1.13 at the midpoint.
- The number of enterprise customers paying more than $100,000 annually slipped to 1,851, down 40 from the prior quarter.
Why These Results Matter at This Stage
ZoomInfo's third-quarter numbers come at an important time for the go-to-market software company. Demand has been softening as clients reconsider budgets and move away from traditional seat-based licensing toward consumption-based models and AI-driven solutions. Annualized revenue growth has slowed to around 1% over the past two years, far below the longer-term pace. This report provides a useful checkpoint on whether the company can hold its revenue line, protect margins, and show that its updated data and AI offerings can help counter pressure in the core business. I’m watching closely to see if the demand environment is starting to stabilize.
The Quarter in Detail
For the period ended September 30, 2026, revenue reached $308.8 million, down 2.9% from the same quarter last year yet 3% ahead of the $299.7 million consensus. Adjusted earnings per share of $0.29 matched expectations exactly. Adjusted operating income rose to $119.1 million, or a 38.6% margin, which topped the $114.3 million consensus.
Guidance for the fourth quarter was set at $295.5 million at the midpoint, roughly 1.2% above the $291.9 million analyst view, although still pointing to a year-over-year drop. Full-year adjusted EPS guidance was lifted slightly to $1.13 at the midpoint. On the GAAP side, operating margin fell to 7.6% from 21.2% a year earlier, and free cash flow margin eased to 28.2%. Enterprise customers with annual contracts above $100,000 totaled 1,851, a decline of 40 from the previous quarter. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Responded
Shares remained fairly steady right after the release, trading near $4.27 as investors balanced the revenue outperformance against the ongoing top-line contraction. The print was mixed overall: the revenue beat, in-line adjusted EPS, and modestly better forward guidance were constructive, yet the continued year-over-year revenue decline and smaller high-value customer base kept sentiment measured. Heading into the report, caution had been the prevailing tone given the demand challenges, and the limited price reaction indicates the market is still focused on the longer-term path back to growth rather than any single quarter’s upside.
What to Watch Going Forward
Looking ahead, attention will turn to whether ZoomInfo can steady its customer base and slow the drop in its largest accounts. Those relationships above $100,000 in annual spend remain a significant driver of revenue, so any further erosion would be notable. The shift toward consumption-based pricing and offerings such as Data-as-a-Service will be key to the growth narrative in the quarters ahead.
The move into AI is another area worth tracking. The company is framing its data as a “context layer” for AI agents on customer platforms, and it has highlighted strength among its biggest clients. If enterprises increasingly access data through APIs instead of traditional seats, both pricing dynamics and retention metrics will change in ways that merit close observation.
Margin and cash-flow trends also deserve attention. While adjusted profitability held up this quarter, both GAAP operating margin and free cash flow margin compressed on a year-over-year basis. How the company manages costs, capital returns, and investment in AI will influence earnings momentum into 2027. From what I see, these factors will shape the story more than any single quarter’s numbers.
Refining Research with AI Tools
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GTM in -2.75% downward trend, falling for three consecutive days on November 03, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GTM declined for three days, in 252 of 316 cases, the price declined further within the following month. The odds of a continued downward trend are 80%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GTM as a result. In 63 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 79%.
The Moving Average Convergence Divergence Histogram (MACD) for GTM turned negative on November 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 34 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
GTM moved below its 50-day moving average on November 05, 2026 date and that indicates a change from an upward trend to a downward trend.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for GTM crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 53%.
Following a +2.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where GTM advanced for three days, in 209 of 276 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
GTM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 96 of 168 cases where GTM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 52 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.229) is normal, around the industry mean (-1.942). P/E Ratio (-1.913) is within average values for comparable stocks, (15.235). Projected Growth (PEG Ratio) (1.250) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.069) among similar stocks. P/S Ratio (0.996) is also within normal values, averaging (70.854).
The Tickeron Price Growth Rating for this company is 77 (best 1 - 100 worst), indicating slightly worse than average price growth. GTM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GTM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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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