GTM: Future Revenue Will Depend On Upside From New AI Segment

Analysts have raised their average price target for ZoomInfo Technologies, increasing it by approximately $1 per share to $13. They cite improving upmarket momentum, stabilization in the down-market segment, and growing optimism around AI-driven initiatives, despite ongoing challenges in customer additions and revenue growth trajectory.

Analyst Commentary

Following ZoomInfo Technologies' latest quarterly results, analysts delivered a mix of cautiously optimistic and more guarded views regarding the company's prospects. Their commentary reflects prevailing trends in valuation adjustments, business execution, and expectations for future growth.

Bullish Takeaways

• Several bullish analysts have raised their price targets for ZoomInfo, signaling growing confidence in the company's improving upmarket momentum and its ability to stabilize trends in the down-market segment.
• Recent quarterly results were generally viewed as positive, with notable top line beats and sequential improvements across customer bases. There is renewed optimism around AI-driven offerings such as Copilot.
• There is greater belief that the company's operational execution is strengthening, supported by incremental improvements in revenue guidance and consistent upsell momentum in key business units.
• Stabilization in existing customer segments and growth opportunities stemming from AI initiatives are highlighted as key factors supporting the potential for greater revenue acceleration in the future.

Bearish Takeaways

• Bearish analysts caution that, despite positive signals, overall growth and customer additions remain sluggish, particularly in the down-market and among larger enterprise clients.
• Some skepticism persists regarding ZoomInfo's ability to outperform front office software peers until unlevered free cash flow growth and margins become more decisive alongside revenue.
• Concerns linger over the uncertain small and medium business backdrop and intensifying competition in the AI segment. Both of these factors could limit broader upside potential.
• A few analysts maintained more cautious or negative ratings, emphasizing that meaningful valuation re-ratings will require sustained improvement in execution and more tangible traction from emerging AI product lines.

What's in the News

• Launched the AI Builder Catalog, empowering recruiters to identify exceptional AI talent by surfacing verifiable proof-of-work signals across open source contributions, academic publications, patents, and technical communities (Key Developments).
• Announced a strategic partnership with Markaaz to deliver an AI-powered B2B data platform, integrating sales intelligence with credit and risk data for enterprise organizations. Launch set for January 2026 (Key Developments).
• Introduced ZoomInfo Copilot Workspace, an AI-powered platform enabling revenue teams to execute go-to-market strategies and manage workflows through unified AI-driven insights and automations (Key Developments).
• Revised full-year 2025 GAAP revenue guidance upward to a range of $1.237 billion to $1.240 billion, signaling increased business confidence (Key Developments).
• Completed share repurchases totaling 69,867,155 shares, or 20.06% of total shares, for $749.42 million as part of its ongoing buyback program (Key Developments).

Valuation Changes

• Fair Value: Remained nearly flat at $12.35 per share, indicating stable analyst consensus on intrinsic worth.
• Discount Rate: Increased slightly from 9.22% to 9.57%, suggesting marginally higher perceived risk or required return.
• Revenue Growth: Declined moderately from 4.36% to 3.86%, reflecting lowered expectations for sales expansion over time.
• Net Profit Margin: Improved slightly from 14.77% to 15.24%, indicating expectations for stronger profitability.
• Future P/E: Dropped from 20.65x to 19.19x, signaling a modest reduction in the company’s forward earnings multiple.