AnalystConsensusTarget updated the narrative for GTM

ZoomInfo Technologies’ analyst price target has risen to roughly $13, up from $11, as analysts cite improved revenue growth, strong Q3 execution, and increased optimism related to upmarket momentum as well as AI initiatives.

Analyst Commentary

Analyst insights following ZoomInfo Technologies' latest quarterly results present a mixed, nuanced picture, with shifting price targets accompanied by both optimism and lingering concerns over the company's growth trajectory.

• Bullish analysts have responded to strong third quarter execution and revenue performance by raising their price targets. This signals greater confidence in the company’s current strategy.
• Improved upmarket momentum and successful upsell initiatives, especially for products like Copilot and Operations, are seen as encouraging signs for future growth and customer retention.
• There is increased optimism regarding the company’s AI-driven offerings. Several analysts are incrementally more positive about ZoomInfo’s ability to harness these tools for sustainable expansion.
• Stability within the down-market segment and sequential improvements among smaller customers were identified as positives that could support consistent top-line growth.

• Bearish analysts remain cautious about persistent weaknesses in the down-market and modest large-customer additions. These factors may constrain broader growth opportunities.
• Despite some positive results, there are concerns that revenue acceleration will depend on more meaningful traction from AI-driven products, especially as competition intensifies.
• Certain analysts believe the company could underperform sector peers until improvements are realized in both free cash flow growth and margin expansion.
• Mixed growth and retention rates, combined with an uncertain small- and medium-sized business environment and evolving AI competition, are seen as ongoing challenges for the company’s ability to sustain higher valuations.

What's in the News

• ZoomInfo revised its earnings guidance for the full fiscal year ending December 31, 2025, raising its expected GAAP Revenue range to $1.237 billion to $1.240 billion. This is an increase from its previous guidance of $1.215 billion to $1.225 billion (Key Developments).
• The company provided specific fourth quarter guidance for 2025, projecting GAAP Revenue between $307 million and $310 million (Key Developments).
• ZoomInfo completed a major share buyback, repurchasing 69,867,155 shares, representing 20.06% of shares outstanding, for a total of $749.42 million as of October 29, 2025 (Key Developments).
• A new strategic partnership with Markaaz was announced to deliver an AI-powered B2B data platform. This partnership aims to integrate sales intelligence with credit and risk data for enterprise organizations, with a full launch expected in January 2026 (Key Developments).
• ZoomInfo unveiled Copilot Workspace, an AI-powered execution engine designed to unify sales and customer management workflows for revenue teams. This product integrates multiple GTM technologies into a single, intelligent workspace (Key Developments).

Valuation Changes

• The Fair Value Estimate has increased slightly to $12.35 from $11.65, reflecting improved expectations for the company’s intrinsic valuation.
• The Discount Rate has decreased marginally, moving from 9.25% to 9.22%, which suggests a modest reduction in perceived risk.
• The Revenue Growth Projection has risen significantly from 2.76% to 4.36%, indicating higher anticipated top-line expansion.
• The Net Profit Margin Forecast has edged down to 14.77% from 15.13%, pointing to slightly lower profitability expectations.
• The Future P/E Ratio has increased to 20.65x from 19.35x, suggesting higher valuation multiples based on projected earnings.