Zillow Group (Z) is a leading real estate technology company reimagining how people buy, sell, rent, and finance homes across the United States. Headquartered in Seattle, Washington, Zillow operates the most visited real estate app and website in the country, connecting hundreds of millions of consumers with trusted local agents, loan officers, and innovative digital tools.
The company has built a diversified real estate marketplace spanning residential listings, rentals, mortgages, and agent software solutions like Zillow Showcase and Zillow Pro. Its portfolio also includes legacy brands such as Trulia, StreetEasy, and HotPads, reinforcing its dominant position in online real estate.
Zillow's Soft Stock Performance
Zillow's stock has had a turbulent 2026, trading near the lower end of its 52-week range and well below its 200-day moving average. Shares recently closed at $36.28, far off the stock's 52-week high above $80, as investors weighed softer housing demand, elevated mortgage rates, and lingering legal overhangs, including the Taylor v. Zillow litigation. The latter of which was dismissed on July 27, but this has done little to help Z stock's performance lately.
By contrast, the tech-heavy Nasdaq Composite ($NASX) has climbed roughly 15% year-to-date (YTD), buoyed by AI-driven optimism and resilient corporate earnings. Z stock, however, has fallen more than 46% over the same stretch, a stark underperformance that underscores company-specific headwinds outweighing the broader market's risk-on rally in growth and technology names.
Previous Quarterly Results
In its recent first-quarter 2026 report, Zillow posted revenue of $708 million, up 18% year-over-year (YoY) and near the high end of company guidance, matching Wall Street's expectations. Diluted earnings per share came in at $0.19, sharply higher than $0.03 a year earlier, and topped analyst estimates. For the next quarter, consensus projects EPS of roughly $0.45 on revenue between $750 million and $765 million, reflecting Wall Street's continued confidence in the company's growth trajectory as it heads into its next earnings release.
Net income reached $46 million, lifting net margin to 6%, a 520-basis-point improvement YoY. Adjusted EBITDA totaled $182 million at a 26% margin, roughly flat despite incremental legal costs. Segment strength was broad-based: Residential revenue rose 8% to $450 million, Mortgage revenue surged 56% to $64 million on booming purchase-loan originations, and Rentals revenue jumped 42% to $183 million, powered by robust growth in multifamily listings.
Management raised its subsequent-quarter revenue guidance to $750–$765 million, up from an earlier range, citing resilient consumer demand for its Premier Agent, Showcase, and New Construction offerings. Cash and investments stood at $788 million after $626 million in share buybacks during the quarter. Leadership remains focused on expanding Zillow's "housing super app" strategy while flagging mortgage-rate volatility and competitive dynamics as ongoing watch items heading into the next reporting period.
Zillow is set to release its second-quarter 2026 results today after the market close.
Zillow Lays Off 500 People
Zillow Group is laying off just over 500 employees in a new restructuring aimed at powering its next phase of growth, CEO Jeremy Wacksman announced in a company blog post.
The move comes as Wacksman described the housing market as largely flat, even as Zillow keeps pushing its "super app" strategy to serve buyers, sellers, renters, and agents in one integrated experience. He called the cuts a difficult but necessary step to maintain a disciplined cost structure and put "the right people in the right positions," while insisting Zillow's core mission and consumer products remain unchanged. Wacksman added that the company continues to outperform the broader housing category and sees its growth opportunity as larger than ever.
Zillow has not detailed how the cuts will affect specific divisions. This marks the company's second layoff round this year, following roughly 200 job cuts in January tied to annual performance reviews.
The Verdict on Z Stock
Zillow's latest round of layoffs signals a company tightening its cost structure even as it doubles down on its housing super app ambitions, a balancing act investors will be watching closely.
Wall Street, however, remains largely constructive as Z stock carries a consensus "Moderate Buy" rating from 31 analysts, split between 15 "Strong Buy," one "Moderate Buy," and 15 "Hold" calls, with a mean price target of $60.02, implying roughly 64% upside from current levels. For investors comfortable with near-term volatility, that gap between sentiment and price may present a compelling entry point.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
