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Z · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Zillow Group, Inc. Class C Capital Stock (Z) stock moving?
Zillow's Q3 2026 report on Nov 4 was a clear miss: adjusted EPS of $0.55 against $0.67 expected, sales of $724M against $773M, and a net loss of $158M. Management cut FY2026 sales guidance to $2.841B-$2.867B from $2.920B-$2.960B, below the $2.980B consensus, and guided Q4 sales to $635M-$665M against $740.8M expected. Housing activity is weakening, with newly pending listings down 17% in October, the largest year-over-year drop since 2023. Since the report, the stock has fallen from a $33.90 close on Nov 4 to $28.98 on Nov 10, which is the lowest close in the 30-day data. Volume spiked to about 10.9M shares on Nov 5, roughly 2.3 times the 30-day average of about 4.8M, and Nov 10 traded about 6.0M shares on a further decline. Analysts have turned more cautious: Citigroup kept a Buy but cut its target to $42, KeyBanc downgraded to Sector Weight on Nov 9, RBC cut its target to $45 from $55 while keeping Outperform, and Needham and Susquehanna kept Hold and Neutral ratings. The $212.5M securities class action settlement agreed on Oct 27 adds to the cost picture, although about $48M is expected to be covered by insurance. Positives are product-driven: the AI Mode feature was opened to all signed-in users and Zillow reported a shift in buyer connections toward preferred partners. Remaining analyst targets of $42-$45 still sit well above the current price, but near-term estimates are being revised down and the next catalyst is Q4 results in early 2027.
News behind the analysis
- Zillow Group Reports Third Quarter 2026 Financial ResultsZillow reported a Q3 2026 net loss of $158 million and revenue growth of 7% year over year. The results came in below expectations.
- Zillow Gr Q3 Adj. EPS $0.55 Misses $0.67 Estimate, Sales $724.000M Miss $773.042M EstimateAdjusted EPS of $0.55 missed the $0.67 estimate and sales of $724M missed the $773M estimate. This was a double miss versus consensus.
- Zillow Group Lowers FY2026 Sales Guidance from $2.920B-$2.960B to $2.841B-$2.867B vs $2.980B EstFull-year 2026 sales guidance was cut to $2.841B-$2.867B from $2.920B-$2.960B, below the $2.980B consensus. The cut is a key negative for the outlook.
- Zillow Gr Sees Q4 Sales $635.000M-$665.000M vs $740.755M EstQ4 2026 sales guidance of $635M-$665M sits well below the $740.8M estimate. This points to a sharp near-term revenue slowdown.
- Zillow Stock Tumbles on Q3 Double Miss, Weak GuidanceShares fell in extended trading after Q3 results missed expectations and guidance disappointed. The stock dropped more than 9% the next session.
- Zillow's Troubles Are Far From Over, Wall Street Analyst Warns As Housing Market WeakensAn analyst warned that Zillow's problems will persist as housing demand weakens. The stock fell over 9% after the Q3 miss and guidance cut.
- Zillow Reports October 2026 Housing Market DataNewly pending listings fell 17% in October, the largest year-over-year drop since 2023. This signals weaker transaction activity ahead for the platform.
- KeyBanc Downgrades Zillow Group to Sector WeightKeyBanc cut its rating on Zillow Group from Overweight to Sector Weight. The downgrade follows its earlier price target cut to $42.
- Citigroup Maintains Buy Rating on Zillow Group, Lowers Price TargetCitigroup kept its Buy rating but cut its price target from $52 to $42. Several other brokers also lowered targets after the Q3 report.
About Zillow Group, Inc. Class C Capital Stock
Zillow Group runs Zillow, the most-visited US real estate website and app, along with brands such as Trulia, StreetEasy and HotPads, where people search for homes to buy or rent. What sets it apart is its huge consumer audience, which it uses to connect home shoppers with real estate agents, its own mortgage lender (Zillow Home Loans) and rental property managers. This is the Class C share (Z), which has no voting rights; the voting Class A share trades separately as ZG.
How it makes money
Residential revenue made up about 58% of the approximately $724 million in Q3 2026 revenue. It comes mainly from Premier Agent, where real estate agents pay for leads from buyers, and Zillow is moving more of these agents to Zillow Preferred, a model where agents pay a share of their fee only when a deal closes. It also includes Showcase listing upgrades, new-construction advertising and agent software such as Follow Up Boss. Rentals revenue was about 30%, mostly from apartment and multifamily landlords paying to advertise, and it has been the fastest-growing part of the business. Mortgage origination through Zillow Home Loans was about 10%. Zillow currently reports net losses under standard accounting (GAAP) but positive adjusted EBITDA.
What usually moves Z
- Mortgage rates and home sale volumes
- Agent adoption of the Zillow Preferred pay-at-closing model
- Growth of the rentals and multifamily business
- Legal and industry changes to agent commissions and listing rules
- Competition for home-search traffic, including AI search tools