PomegraZillow Stock Falls 9% After Q3 Earnings Miss
Why is Zillow stock down today?
Zillow (Z) stock fell about 9% to near $31 on Thursday after a third-quarter earnings miss, as weak home sales and a soft fourth-quarter forecast sent shares as much as 15% lower early.
Key numbers
| Q3 revenue | $724M+7% YoY, vs ~$754M expected |
|---|---|
| Adjusted EPS | $0.55vs $0.58–$0.60 expected (estimates differ by source) |
| Q4 revenue guidance | $635M–$665Mabout flat YoY |
| Residential revenue | $419M-4% YoY |
| Rentals revenue | $220M+26% YoY |
| Share price Thursday | $31.25-9.3% |
What happened
Zillow (Z) stock fell about 9% to near $31 on Thursday after a third-quarter earnings miss, as weak home sales and a soft fourth-quarter forecast sent shares as much as 15% lower early. Sales rose 7% from a year ago to $724 million, but analysts expected about $754 million. Adjusted profit was 55 cents a share, short of the roughly 59 cents expected. For the next quarter, Zillow forecast sales of $635 million to $665 million, about flat from last year and below expectations.
Why it matters
Zillow is the most-visited US real estate website, so its results offer a read on how healthy the housing market is. Higher mortgage rates have kept fewer people buying homes, and Zillow's home-sales business shrank 4% as a result. Its rental and mortgage businesses kept growing. The CEO also cautioned against assuming the housing market improves in 2027.
Who this affects
- MarketbearishMedium impact
- Investors in housing-linked stocks face a weaker outlook.
- CompanybearishHigh impact
- Zillow shareholders hit by falling shares and cut price targets.
- CompetitorsneutralLow impact
- Rivals tied to home sales face the same slow market.
- IndustrymixedMedium impact
- Agents increasingly pay Zillow only after a home sale closes.
Zillow vs Compass, Rocket Companies, Opendoor
How we got here
Housing stocks rally as Treasury yields fall; Zillow rises 8% to $33.37.
Zillow reports Q3 revenue of $724M, below estimates; shares fall about 15% after hours.
Shares open sharply lower, then trade about 9% down as analysts cut price targets.
What to watch
- Zillow's Q4 results versus its $635M–$665M revenue forecast.Q1 2027
- Mortgage purchase volumes; Zillow warned of a 10–15% industry decline in Q4.Q4 2026
- Rollout of Preferred agent program to all connections, expected by first half of 2027.H1 2027
Educational content only. Not investment advice.
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