Go-to-market intelligence provider ZoomInfo (NASDAQ:GTM) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 3.2% year on year to $319.1 million. The company expects next quarter’s revenue to be around $307.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.32 per share was 13.5% above analysts’ consensus estimates.
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ZoomInfo (GTM) Q4 CY2025 Highlights:
- Revenue: $319.1 million vs analyst estimates of $309.3 million (3.2% year-on-year growth, 3.2% beat)
- Adjusted EPS: $0.32 vs analyst estimates of $0.28 (13.5% beat)
- Adjusted Operating Income: $122.6 million vs analyst estimates of $118.9 million (38.4% margin, 3.2% beat)
- Revenue Guidance for Q1 CY2026 is $307.5 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $1.11 at the midpoint, in line with analyst estimates
- Operating Margin: 17%, up from 10% in the same quarter last year
- Annual Recurring Revenue: $1.28 billion (4.1% year-on-year growth, beat)
- Billings: $365 million at quarter end, in line with the same quarter last year
- Market Capitalization: $2.28 billion
StockStory’s Take
ZoomInfo’s fourth quarter was marked by a clear upmarket shift and ongoing AI-driven product expansion, but the market reacted negatively to the results. Management highlighted that growth was primarily fueled by larger enterprise customers and increasing adoption of its Copilot platform, with CEO Henry Schuck noting, “Upmarket again grew 6% in our seasonally largest upmarket quarter.” However, management acknowledged persistent challenges in the downmarket segment and lingering headwinds from changes in AI and search engine optimization (SEO) that weighed on customer acquisition and renewal rates.
Looking forward, ZoomInfo’s guidance reflects confidence in its new AI-powered offerings and an expectation that continued migration to consumption-based pricing models will underpin future growth. Management plans to accelerate customer adoption of Copilot and GTM Workspace, with Schuck stating, “We will rev our distribution engine and bring the go-to-market AI platform to all go-to-market professionals.” While the company expects upmarket momentum and product innovation to drive results, it remains cautious about potential pressure from the ongoing transition away from seat-based pricing and the need to address downmarket softness.
Key Insights from Management’s Remarks
Management attributed Q4 performance to strong enterprise demand, successful product migrations, and the scaling of AI-first solutions, while emphasizing continued cost discipline and capital return.
- Upmarket growth momentum: ZoomInfo continued its strategic pivot toward larger enterprise customers, with upmarket now representing 74% of total business and double-digit growth in $100,000-plus annual contract value cohorts. Management stressed these customers are “stickier” and renew at higher rates, contributing to improved profitability.
- AI product adoption: The Copilot platform, ZoomInfo’s AI-native workspace, now accounts for over 20% of total annual contract value. Management highlighted that customers migrating to Copilot are showing higher net retention and renewal rates, with ongoing investments to drive further adoption in 2026.
- Data quality and integration: Operations, the company’s data-as-a-service business, saw more than 20% growth as customers prioritize high-quality, actionable data to power AI workflows. Schuck explained that expanding integrations with platforms like Salesforce and HubSpot are critical to embedding ZoomInfo’s data into customers’ broader technology stacks.
- Pricing model evolution: The shift from seat-based to consumption and value-based pricing continued, with management expecting consumption-based revenue to become a larger share over time. Early feedback on new pricing models has been positive, especially among customers integrating ZoomInfo’s data into their own AI applications.
- Share repurchase and capital allocation: ZoomInfo announced an additional $1 billion share repurchase authorization, emphasizing its intent to return capital to shareholders while maintaining operational investments. Management views current market sentiment as disconnected from business fundamentals and plans to deploy cash flow opportunistically.
Drivers of Future Performance
ZoomInfo’s outlook centers on expanding enterprise adoption of its AI products, transitioning to new pricing models, and managing margin pressures tied to product innovation.
- Enterprise AI adoption focus: Management expects upmarket momentum to persist as more large customers adopt Copilot and GTM Workspace, which unify first- and third-party data for sales and marketing teams. This trend is anticipated to drive higher net retention and increased contract values.
- Consumption-based pricing transition: The ongoing move from seat-based to consumption and value-based pricing models is expected to drive more durable, scalable revenue. While this shift may create some short-term gross margin pressure, management believes it will improve long-term alignment between customer value and ZoomInfo’s financial performance.
- Downmarket headwinds and SEO recovery: Leadership remains focused on counteracting downmarket weakness, which has been exacerbated by AI-driven changes to SEO. Management is executing a new playbook to recover top-of-funnel demand and expects easier comparisons in the second half of 2026 to become a tailwind for overall growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) increased Copilot and GTM Workspace adoption rates among both new and existing enterprise customers, (2) the effectiveness of initiatives aimed at recovering downmarket and SEO-driven demand, and (3) the pace and impact of the shift to consumption-based pricing. Execution on these fronts will be critical for ZoomInfo’s ability to drive sustainable revenue growth and margin improvement.
ZoomInfo currently trades at $6.76, down from $7.32 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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