Zillow Group (NASDAQ: ZG) Navigates Mixed Q2 2026 Results and Analyst Downgrade

• Bernstein downgraded Zillow Group from Outperform to Market Perform and lowered its price target from $50 to $38.
• Zillow Group reported second-quarter 2026 revenue of $772 million, exceeding the analyst estimate of approximately $758 million.
• Adjusted EPS was $0.52, above the consensus estimate of approximately $0.45.
• Despite strong revenue and adjusted profitability, Zillow Group reported a GAAP net loss of $4 million, or $0.02 per diluted share. Analysts had expected net income of approximately $21 million.

Zillow Group (NASDAQ: ZG) is a leading online real estate marketplace. The company provides digital platforms and services for buying, selling, renting, and financing homes. It operates in a competitive housing technology market.

On August 6, 2026, Bernstein downgraded Zillow Group to Market Perform from Outperform and lowered its price target to $38 from $50. With the stock trading at approximately $36.89 at the time, the new target implied potential upside of about 3%.

The downgrade followed Zillow’s second-quarter results and weaker-than-expected guidance for the second half of 2026. Bernstein expressed concerns about the company’s revenue outlook and the pace of growth in its Residential segment.

Zillow Group reported second-quarter revenue of $772 million, an 18% year-over-year increase. Revenue exceeded the consensus estimate of approximately $758 million, supported by growth in the company’s Rentals and Mortgages businesses.

The company’s adjusted EPS was $0.52, surpassing the analyst estimate of approximately $0.45. Adjusted net income reached $118 million, while adjusted EBITDA was $176 million.

However, Zillow reported a GAAP net loss of $4 million, compared with net income of $2 million in the same quarter a year earlier. The company also reported a GAAP diluted loss of $0.02 per share. The loss was largely associated with approximately $36 million in impairment and restructuring costs.

Zillow Group CEO Jeremy Wacksman said the company had “delivered another quarter of strong results and consistent execution.” However, investors remained concerned about the company’s weaker third-quarter revenue outlook, the slower housing market, and the difference between adjusted profitability and GAAP results.

Zillow’s stock has experienced substantial volatility, trading between approximately $29.03 and $90.22 over the past year. This wide range reflects continued uncertainty surrounding housing demand, mortgage activity, revenue growth, and the company’s transition toward its Preferred agent model.