ZoomInfo sinks 10% after results; Citizens cuts stock to Market Underperform

SelfRugger · 2026-02-11T20:59:32+00:00

ZoomInfo Technologies reported better-than-expected Q4 results, but shares fell 10% due to concerns about increasing competition and declining calculated billings. Citizens downgraded the stock, citing worries over net retention rates and high debt.

SelfRugger

2026-02-11 20:59:32

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ZoomInfo sinks 10% after results; Citizens cuts stock to Market Underperform

Vahid Karaahmetovic

Tue, February 10, 2026 at 8:26 PM GMT+9 1 min read

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Investing.com – ZoomInfo Technologies reported fourth-quarter results that largely beat market expectations, but shares tumbled sharply in premarket trading on Tuesday.

The stock was down more than 10% by 05:53 ET.

For the fourth quarter, revenue rose 3% year on year to $319.1 million, above the $309.3 million consensus. Non-GAAP EPS came in at $0.32, ahead of the $0.28 consensus estimate.

Non-GAAP operating margin was 38.4%, in line with expectations, while operating cash flow of $143.5 million and unlevered free cash flow of $135.2 million both exceeded consensus forecasts .

Calculated billings fell 2% year on year to $277.6 million, below consensus. Customers with more than $100,000 in annual contract value rose 3% to 1,921, while current remaining performance obligations (cRPOs) increased 4% to $887.4 million.

For the first quarter of 2026, the company guided to revenue of $306 million to $309 million, up 1% year on year at the midpoint, and non-GAAP EPS of $0.25 to $0.27. For full-year 2026, ZoomInfo expects revenue of $1.247 billion to $1.267 billion, also implying 1% growth at the midpoint, and non-GAAP EPS of $1.10 to $1.12.

Following the report, Citizens downgraded the stock to Market Underperform from Market Perform and set a $6 price target.

Analysts led by Patrick Walravens cited “increasing competition” from vendors such as Clay, Gong and Salesforce, concerns about a “persistent 90% net retention rate,” and uncertainty around a new $1 billion share repurchase authorization given the company’s roughly $1.3 billion in debt and about $180 million in cash.

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