It has been about a month since the last earnings report for Zeta Global Holdings (ZETA Quick QuoteZETA - Free Report) . Shares have added about 12.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Zeta due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Zeta Q2 Earnings Beat Estimates

Zeta Global Holdings reported impressive second-quarter 2026 results.

Earnings of 21 cents per share beat the Zacks Consensus Estimate of 20 cents by 5%. GAAP earnings improved to 3 cents per share as the company generated net income of $8.2 million compared with a net loss of $12.8 million a year ago.

Revenues surged 43.5% year over year to $442.8 million, surpassing the consensus estimate of $420.2 million by 5.4%. Growth reflected strong AI adoption, customer expansion and higher platform usage. Super-scaled customers and their average revenue per user each increased 17%.

The stock gained 6% since the earnings release on Aug. 4 in response to the better-than-expected results and as guidance was strong. For the third quarter of 2026, Zeta expects revenues between $469 million and $472 million, implying growth of 39-40%. The midpoint increased by $10 million from the prior outlook.

Adjusted EBITDA is projected between $115 million and $116 million, representing growth of 47-49%. The corresponding margin is expected between 24.4% and 24.7%.

Management raised its 2026 revenue guidance to $1.811-$1.824 billion from a prior midpoint of $1.785 billion. The revised range indicates growth of 39-40%, or 24-25% excluding M&A and political candidate revenues.

Adjusted EBITDA is now expected between $404.1 million and $406.3 million. Free cash flow guidance increased to $254.8-$255.8 million, while GAAP earnings guidance rose to 9-11 cents per share.

ZETA Benefits From Broad-Based Revenue Growth

Second-quarter revenues increased from $308.4 million in the year-ago period. Excluding acquisitions, revenues rose 28%, marking the company’s 21st consecutive quarter of more than 20% growth after excluding M&A and political candidate revenues.

Demand was broad-based across industries. Eight of Zeta’s top 10 verticals posted more than 20% trailing-12-month growth. Consumer and retail, financial services, automotive and healthcare accelerated from the preceding quarter.

The total sales pipeline expanded more than 60% year over year and increased by more than $100 million over the past 90 days. Pipeline creation per seller more than doubled, while average contract values for deals won increased more than 40%.

Zeta’s Customer Metrics Exceed Long-Term Model

The number of super-scaled customers, which generate at least $1 million in trailing-12-month revenues, reached 197. This compares with 168 a year earlier and 189 in the first quarter, marking seven consecutive quarters of sequential growth.

Super-scaled customer average revenue per user reached $1.8 million, up from $1.6 million a year ago. Both customer-count growth and ARPU growth exceeded the ranges in Zeta’s 2028 model.

Customers using more than one use case increased 90% year over year, while those employing at least five channels rose more than 50%. Cross-sell and upsell deals won advanced 43%, reflecting traction from the One Zeta sales initiative and Marigold cross-selling.

ZETA’s AI Adoption Supports Platform Expansion

More than 40% of super-scaled customers became monthly active Athena users within 130 days of its enterprise launch. Among all customers, the 20% that comprehensively adopted Zeta’s AI tools generated roughly 70% of revenues.

Within the super-scaled group, the 50% of customers with comprehensive AI adoption accounted for 75% of revenues. These AI-intensive users grew four times faster than customers still in the early stages of adoption.

Athena engagement is increasingly voice-based, with 83% of customer interactions conducted through spoken commands. Management also noted that 90% of new code generated during the quarter was automated, helping accelerate product development.

Zeta Delivers Margin and Cash Flow Gains

Adjusted EBITDA increased 56% year over year to $91.7 million. Adjusted EBITDA margin expanded 170 basis points to 20.7%, reflecting integration savings and restructuring benefits from Marigold.

Operating expenses totaled $425.8 million compared with $313.5 million a year ago. Cost of revenues was $181 million, while selling and marketing, general and administrative, and research and development expenses were $104 million, $75.9 million and $42.2 million, respectively.

Operating cash flow rose 65% to $69.2 million. Free cash flow advanced 73% to $58 million, while free cash flow margin improved 220 basis points to 13.1%.

Zeta ended the quarter with cash and cash equivalents of $310 million and long-term borrowings of $197.5 million. The company also repurchased $29.9 million of shares during the quarter.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Zeta has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Zeta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.