GTM: Future Upside Will Depend On AI Demand And Upmarket Momentum

Analysts have nudged their average price target on ZoomInfo Technologies modestly higher, to roughly $13 per share, citing Q3 outperformance; improving upmarket traction; early benefits from AI offerings like Copilot; and signs of stabilization in the downmarket customer base despite ongoing growth headwinds.

Analyst Commentary

Street research following the Q3 report reflects a cautiously constructive stance, with several firms modestly lifting price targets while maintaining mixed ratings that balance improving execution against lingering growth concerns.

Bullish Takeaways

• Bullish analysts highlight a solid Q3 beat, noting that better than expected top line performance and raised full year guidance support a case for gradual multiple expansion.
• Improving traction upmarket and evidence of more stable trends in the downmarket customer base are viewed as early signs that growth could re-accelerate if demand conditions continue to normalize.
• New AI driven offerings, including Copilot and related operations tools, are seen as important incremental growth levers that could enhance win rates, upsell momentum, and long term revenue durability.
• Some research desks describe the tone on management execution as improving, with enhanced confidence that the company can navigate macro headwinds while protecting margins and free cash flow.

Bearish Takeaways

• Bearish analysts argue that, despite Q3 outperformance, the pace of improvement is too modest to justify a major re rating, as revenue growth remains in the mid single digits and large customer additions are limited.
• Persistent weakness in the down market and uneven upmarket momentum are seen as signals that retention and expansion trends may not yet be on a sustainably stronger footing.
• The stock is viewed by some as likely to lag faster growing front office software peers until unlevered free cash flow growth and margins inflect meaningfully higher alongside revenue.
• Several notes caution that the AI opportunity, while promising, still needs clearer proof of material contribution to growth, especially given an evolving competitive landscape and uncertain SMB demand.

What's in the News

• Forrester's commissioned Total Economic Impact study found a composite ZoomInfo customer achieved a 316% ROI, $7.6 million in quantified benefits, and payback in under six months, driven by better data quality, productivity, and revenue growth (Forrester TEI study, client announcement).
• ZoomInfo launched its AI Builder Catalog, a specialized dataset that uses verifiable proof of work signals like open source code, academic publications, and patents to help recruiters identify top and emerging AI talent beyond traditional resumes (product announcement).
• The company raised full year 2025 GAAP revenue guidance to a range of $1.237 billion to $1.240 billion, up from its prior outlook of $1.215 billion to $1.225 billion (corporate guidance).
• ZoomInfo updated fourth quarter 2025 guidance, projecting GAAP revenue between $307 million and $310 million (corporate guidance).
• From July 1 to October 29, 2025, ZoomInfo repurchased about 11.2 million shares for $117.22 million, completing a broader buyback of roughly 69.9 million shares for $749.42 million under its February 2024 authorization (buyback update).

Valuation Changes

• Fair Value Estimate: Unchanged at approximately $12.35 per share, reflecting a stable intrinsic value assessment.
• Discount Rate: Risen slightly from about 9.58% to 9.60%, indicating a marginally higher required return on equity risk.
• Revenue Growth: Effectively unchanged at roughly 3.86% annually, suggesting no material revision to long term top line expectations.
• Net Profit Margin: Stable at about 15.24%, with no meaningful change to long run profitability assumptions.
• Future P/E: Increased very modestly from roughly 19.19x to 19.20x, implying a slightly higher valuation multiple on forward earnings.