Zillow Group, Inc (Z) AI Stock Analysis
Z AI stock analysis summary
AI ResearchZillow Group, Inc. operates a network of digital real estate platforms covering home sales, rentals, and mortgage services across the United States. Revenue grew to $2.81B over the trailing twelve months, with annual net income turning positive at $23.0M in FY2025. The company maintains a net cash position of $124.0M as of June 30, 2026.
- Market cap
- $6.93B
- Revenue (TTM)
- $2.81B
- P/E
- 134.0x fwd 9.9x
- 1Y return
- -58.4% S&P 500 16.8%
- Avg. target
- $41.83 35.7% vs last close
Bull case
- Quarterly revenue rose 17.9% year-over-year for the period ending June 30, 2026, alongside 533.3% quarterly earnings growth.
- Forward P/E is 9.9x with a PEG ratio of 0.93, comparing to a peer median forward P/E of 14.1x.
- The balance sheet carries $124.0M in net cash with a low debt-to-equity ratio of 0.13 as of June 30, 2026.
Bear case
- The stock fell 58.4% over the trailing 12 months, trailing the S&P 500 gain of 16.8%.
- Gross margins compressed each year from 84.8% in FY2021 down to 74.1% in FY2025.
- Trailing twelve-month operating margin is 4.7%, which sits below the peer median operating margin of 13.3%.
What Zillow does
Zillow Group, Inc. is a digital real estate company operating mobile applications and websites across the United States, including Zillow Rentals, Trulia, StreetEasy, and HotPads. It operates in three primary segments: Homes, Internet, Media & Technology (IMT), and Mortgages. The Homes segment handles home resales and offers title and escrow services for real estate transactions. The IMT segment delivers premier agent services, rental marketplaces, new construction listings, dotloop transaction management software, and real estate advertising. The Mortgage segment provides home loans, marketing products, and custom quote tools to connect buyers with lending solutions.
Growth and profitability
Zillow generated $2.58B in revenue during FY2025, up 15.5% from $2.24B in FY2024 and expanding at a 5-year CAGR of 9.7%. Gross margin stood at 74.1% in FY2025, continuing a downward trend from 84.8% in FY2021. The business recorded positive annual net income of $23.0M and a net margin of 0.9% in FY2025, improving from net income of -$112.0M in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue growth reached 17.9% year-over-year, while quarterly earnings grew 533.3%, lifting trailing twelve-month revenue to $2.81B with a net profit margin of 2.0% and EPS of $0.23.
Balance sheet and cash flow
As of June 30, 2026, Zillow held $682.0M in cash and short-term investments against total debt of $558.0M, resulting in net cash of $124.0M. The company maintains a current ratio of 1.92 and a debt-to-equity ratio of 0.13 alongside shareholders' equity of $4.31B. In FY2025, operating cash flow reached $368.0M and free cash flow was $235.0M. Cash deployment in FY2025 included $133.0M in capital expenditures and $670.0M dedicated to share buybacks, contributing to a 5-year share count decline of 10.3%.
Valuation and performance
Zillow trades at a market capitalization of $6.93B and an enterprise value of $6.35B. Its forward P/E ratio is 9.9x, below the 14.1x median of its US-listed Communication Services peers, while its trailing P/E of 134.0x sits above the peer median of 16.2x. Zillow's enterprise value-to-EBITDA multiple is 18.3x versus the peer median of 10.0x, and its price-to-sales ratio is 2.5x compared to 0.8x for the peer group. Over the past year, the stock fell 58.4%, while the S&P 500 gained 16.8%.
What analysts expect
Wall Street coverage includes 1 Strong Buy, 1 Buy, and 5 Hold ratings. The mean price target of $41.83 represents a 35.7% premium over the last close of $30.82. For the fiscal year ending December 31, 2026, consensus expectations project revenue of $2.95B and EPS of $2.22, reflecting 35.1% earnings growth. Next fiscal year estimates project revenue of $3.29B and EPS of $2.77 across 6 analysts. Over the last four quarters, Zillow has beaten EPS estimates 2 times. The next earnings date is November 4, 2026.
Key risks and what to watch
- The stock displays elevated market sensitivity with a beta of 2.02 and a short interest of 10.1% of float.
- FY2025 share repurchases of $670.0M substantially exceeded the annual free cash flow of $235.0M.
- The company has missed analyst EPS targets in 2 of the last 4 quarters.
- Trailing twelve-month return on equity remains modest at 1.2%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this Z AI stock analysis
This page is an AI-written research summary of Zillow Group, Inc (Z). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: Z income statement, Z balance sheet, Z key metrics, Z analyst forecast, Z chart. See the Z stock overview for the latest quote and news.
Z AI stock analysis FAQ
Does Zillow pay a dividend?
Zillow Group does not pay a dividend. Capital allocation has focused on capital expenditures of $133.0M and share repurchases of $670.0M during FY2025.
What are analysts' price targets for Z stock?
The mean analyst price target is $41.83, which is 35.7% above the last close price of $30.82. Current ratings consist of 1 Strong Buy, 1 Buy, and 5 Hold recommendations.
How much debt does Zillow have?
As of June 30, 2026, Zillow held $558.0M in total debt against $682.0M in cash and short-term investments, leaving the company with $124.0M in net cash and a debt-to-equity ratio of 0.13.
When is Zillow's next earnings report?
Zillow is scheduled to report its next earnings on November 4, 2026.