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ZG · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Zillow Group Inc Class A (ZG) stock moving?
Zillow's Q3 2026 results on Nov 4 were a clear miss: adjusted EPS of $0.55 against $0.67 expected and sales of $724M against $773M. Management also cut full-year 2026 sales guidance to $2.841B-$2.867B from $2.920B-$2.960B, below the $2.942B consensus, and guided Q4 sales to $635M-$665M against $708.7M expected. The stock gave back its earnings-day gain, falling 9.4% on Nov 5 to $31.21 on about 1.9M shares. It then slid to $29.51 on Nov 10, a new low for the 30-day window, on volume of 1.5M. Since Oct 22 the shares are down about 16%. Analysts responded with a wave of price target cuts from Nov 3 to Nov 9, with Cantor at $26, Wells Fargo at $30, Susquehanna at $32, Bernstein at $34, Canaccord at $34, Evercore at $35 and Citizens at $40 among the lower-to-mid targets. KeyBanc downgraded the stock to Sector Weight on Nov 9. Buy-rated firms, including Citigroup at $42, UBS at $43 and StoneX at $70, have stayed constructive, but their targets are also falling. A separate SEC filing from Oct 27 disclosed a $212.5M settlement of a securities class action, of which about $48M is expected to be covered by insurance. That settlement removes a litigation overhang, but it is a cash cost payable after preliminary court approval. Overall, the fundamental news is negative, and the price is trading near the lower end of recent analyst targets.
News behind the analysis
- Zillow Stock Tumbles on Q3 Double Miss, Weak GuidanceZillow shares fell after hours on Nov 4 when Q3 results missed expectations on both earnings and sales. The company's weak outlook added to the selling pressure.
- Zillow Gr Q3 Adj. EPS $0.55 Misses $0.67 Estimate, Sales $724.000M Miss $773.042M EstimateQ3 adjusted EPS of $0.55 came in below the $0.67 estimate, and sales of $724M missed the $773M consensus. These figures are the core of the earnings miss.
- Zillow Group Lowers FY2026 Sales Guidance from $2.920B-$2.960B to $2.841B-$2.867B vs $2.942B EstFull-year 2026 sales guidance was cut to $2.841B-$2.867B, below the $2.942B consensus. The lower range is the main guidance change.
- Zillow Gr Sees Q4 Sales $635.000M-$665.000M vs $708.661M EstQ4 sales guidance of $635M-$665M sits well below the $708.7M estimate. This implies continued weakness heading into year-end.
- Keybanc Downgrades Zillow Group to Sector WeightKeyBanc cut its rating on Zillow to Sector Weight, a downgrade from Overweight. It is the most recent rating change in the coverage.
- Citigroup Maintains Buy on Zillow Group, Lowers Price Target to $42Citigroup kept its Buy rating but cut its price target to $42. The target still implies upside from the Nov 10 close of $29.51.
- Susquehanna Maintains Neutral on Zillow Group, Lowers Price Target to $32Susquehanna kept a Neutral rating and lowered its price target to $32. The new target is close to the current share price.
- UBS Maintains Buy on Zillow Group, Lowers Price Target to $43UBS maintained its Buy rating and cut its price target to $43. It is one of several Buy-rated firms still showing upside.
- Cantor Fitzgerald Maintains Neutral on Zillow Group, Lowers Price Target to $26Cantor Fitzgerald kept a Neutral rating and cut its price target to $26, the lowest target in the coverage list. It sits below the current share price.
- Wells Fargo Maintains Equal-Weight on Zillow Group, Lowers Price Target to $30Wells Fargo kept an Equal-Weight rating and lowered its price target to $30. The move came the day after the earnings-driven sell-off.
About ZILLOW GROUP INC CLASS A
Zillow Group runs the most visited US real estate website and apps, where people search for homes to buy or rent and connect with agents, lenders and landlords. Its brands include Zillow, Trulia, StreetEasy and HotPads, and it draws the large majority of US real estate web traffic. ZG is the voting Class A share; Z is the non-voting Class C share of the same company.
How it makes money
Most of its revenue comes from residential advertising. The main program is Premier Agent, where real estate agents pay for buyer leads, often through a referral fee charged when a deal closes. Rentals is the fastest-growing segment, earning money from landlord and property-manager listings. In Q3 2026 it brought in about $220 million of roughly $724 million total revenue, around 30%. Zillow also earns money from mortgage lending (Zillow Home Loans) and software for agents, such as ShowingTime and Follow Up Boss.
What usually moves ZG
- US existing-home sales volume
- Mortgage interest rates
- Growth in the rentals business
- Agent commission rules and industry litigation
- Website traffic and share of real estate audience