We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zillow Q2 Earnings Surpass Estimates on Solid Revenue Growth
Read MoreHide Full Article
Key Takeaways
ZG beats Q2 2026 adjusted EPS and revenue estimates as total revenues rose 18% year over year.
Zillow's mortgage revenues jumped on 95% purchase loan origination growth, while rentals grew 31%.
Zillow expects Q3 2026 mortgage revenue growth above 50% and 2026 revenues of $2.92B-$2.96B.
Zillow Group, Inc. (ZG - Free Report) reported strong second-quarter 2026 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The company reported an 18% year-over-year increase in total revenues, primarily driven by robust growth in the mortgages segment, supported by continued strength in the rentals business and steady momentum in the residential segment, reflecting sustained demand across its integrated real estate platform.
Net Income
On a GAAP basis, the company reported a net loss of $4 million or a loss of 2 cents per share against a net income of $2 million or 1 penny per share in the year-ago quarter. Higher costs and operating expenses pressured the bottom line during the quarter.
Non-GAAP net income in the reported quarter was $118 million or 52 cents per share compared with $101 million or 40 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 44 cents.
Zillow Group, Inc. Price, Consensus and EPS Surprise
Quarterly revenues increased to $772 million from $655 million in the year-ago quarter. Healthy growth in all segments boosted the top line. The top line beat the Zacks Consensus Estimate of $759.5 million.
Residential revenues increased 7% to $465 million, primarily driven by the expansion of Zillow Preferred through increased connections in its fully integrated experience, with additional contributions from Zillow Showcase, New Construction and agent software tools.
The mortgages segment generated $84 million in revenues compared with $48 million in the year-earlier quarter, mainly due to 95% growth in purchase loan origination as the company’s mortgage strategy is encouraging more buyers to use Zillow Home Loans.
Rental revenues rose 31% to $209 million, primarily driven by a 42% increase in multifamily revenues.
Other Details
During the quarter, the company recorded a gross profit of $562 million compared with $489 million in the prior-year quarter, with respective margins of 73% and 75%. The operating expenses during the quarter were $572 million, up from $500 million in the prior-year quarter. Adjusted EBITDA was $176 million compared with $155 million a year ago, with respective margins of 23% and 24%.
Cash Flow & Liquidity
In the second quarter, Zillow generated $11 million in cash from operations compared with $87 million in the year-earlier quarter. During the first six months of 2026, the company generated $211 million in cash compared with $191 million in the year-ago period. As of June 30, 2026, it had $572 million in cash and cash equivalents, with $77 million of lease liabilities (net of current portion).
Outlook
For the third quarter of 2026, Zillow expects total revenues in the range of $745-$760 million. Total adjusted EBITDA is expected in the band of $180 million to $200 million. Management expects Mortgages’ revenues to grow more than 50% year over year. Residential revenue growth is projected to be flat, while rental revenues are expected to increase in the high 20% range.
For the fourth quarter of 2026, Zillow expects residential revenue growth to align with the purchase mortgage industry, while adjusted EBITDA is projected to be in the mid-single-digit range. For 2026, the company projects total revenues between $2.92 billion and $ 2.96 billion, and adjusted EBITDA is expected to be in the range of $730- $760 million.
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.
Analog Devices, Inc. (ADI - Free Report) is set to release third-quarter fiscal 2026 earnings Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.
Applied Materials, Inc. (AMAT - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 35.48% from the year-ago reported figure.
Applied Materials has a long-term earnings growth expectation of 32.44%. The company delivered an average earnings surprise of 6.06% in the last four reported quarters.
View the Zacks #1 Rank List
Image: Bigstock
Zillow Q2 Earnings Surpass Estimates on Solid Revenue Growth
Key Takeaways
Zillow Group, Inc. (ZG - Free Report) reported strong second-quarter 2026 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The company reported an 18% year-over-year increase in total revenues, primarily driven by robust growth in the mortgages segment, supported by continued strength in the rentals business and steady momentum in the residential segment, reflecting sustained demand across its integrated real estate platform.
Net Income
On a GAAP basis, the company reported a net loss of $4 million or a loss of 2 cents per share against a net income of $2 million or 1 penny per share in the year-ago quarter. Higher costs and operating expenses pressured the bottom line during the quarter.
Non-GAAP net income in the reported quarter was $118 million or 52 cents per share compared with $101 million or 40 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 44 cents.
Zillow Group, Inc. Price, Consensus and EPS Surprise
Zillow Group, Inc. price-consensus-eps-surprise-chart | Zillow Group, Inc. Quote
Revenues
Quarterly revenues increased to $772 million from $655 million in the year-ago quarter. Healthy growth in all segments boosted the top line. The top line beat the Zacks Consensus Estimate of $759.5 million.
Residential revenues increased 7% to $465 million, primarily driven by the expansion of Zillow Preferred through increased connections in its fully integrated experience, with additional contributions from Zillow Showcase, New Construction and agent software tools.
The mortgages segment generated $84 million in revenues compared with $48 million in the year-earlier quarter, mainly due to 95% growth in purchase loan origination as the company’s mortgage strategy is encouraging more buyers to use Zillow Home Loans.
Rental revenues rose 31% to $209 million, primarily driven by a 42% increase in multifamily revenues.
Other Details
During the quarter, the company recorded a gross profit of $562 million compared with $489 million in the prior-year quarter, with respective margins of 73% and 75%. The operating expenses during the quarter were $572 million, up from $500 million in the prior-year quarter. Adjusted EBITDA was $176 million compared with $155 million a year ago, with respective margins of 23% and 24%.
Cash Flow & Liquidity
In the second quarter, Zillow generated $11 million in cash from operations compared with $87 million in the year-earlier quarter. During the first six months of 2026, the company generated $211 million in cash compared with $191 million in the year-ago period. As of June 30, 2026, it had $572 million in cash and cash equivalents, with $77 million of lease liabilities (net of current portion).
Outlook
For the third quarter of 2026, Zillow expects total revenues in the range of $745-$760 million. Total adjusted EBITDA is expected in the band of $180 million to $200 million. Management expects Mortgages’ revenues to grow more than 50% year over year. Residential revenue growth is projected to be flat, while rental revenues are expected to increase in the high 20% range.
For the fourth quarter of 2026, Zillow expects residential revenue growth to align with the purchase mortgage industry, while adjusted EBITDA is projected to be in the mid-single-digit range. For 2026, the company projects total revenues between $2.92 billion and $ 2.96 billion, and adjusted EBITDA is expected to be in the range of $730- $760 million.
Zacks Rank
Zillow currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.
Analog Devices, Inc. (ADI - Free Report) is set to release third-quarter fiscal 2026 earnings Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.
Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.
Applied Materials, Inc. (AMAT - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 35.48% from the year-ago reported figure.
Applied Materials has a long-term earnings growth expectation of 32.44%. The company delivered an average earnings surprise of 6.06% in the last four reported quarters.