revenue growth
3.5–5 pct
Q3 2025
official guidance
ZILLOW GROUP, INC.
Last · NasdaqGS$32.43+3.16 (+10.80%)live · yahoo · 1h ago
Market cap$7.29B41.4M sh
P/E · TTM141fwd 11.0 · eps 0.23
Beta—vs S&P 500
Div yield0.00%annual · TTM
52w range
$27.25$76.32
Volume1.3Msession
| Revenue | $1.5B |
|---|---|
| Operating income | $26.0M |
| Net income | $42.0M |
| Free cash flow | $141.0M |
| Operating margin | 1.8% |
| Net margin | 2.8% |
| Return on equity | 1.0% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong bookings and capital returns are offset by expected second-half deceleration and unquantified AI monetization.
Cognizant delivered a strong Q2—$5.2 billion of revenue, up 7.2% year over year in constant currency, 18% bookings growth, 15.6% adjusted operating margin, and a 1.4x trailing book-to-bill—and raised 2025 revenue growth guidance to 4%-6% and adjusted EPS to $5.08-$5.22. However, the outlook still embeds discretionary weakness and a Q4 exit rate around 1% at the midpoint, while AI monetization and pricing remain largely unproven; the results support holding the stock, not chasing it.
Themes
- Q2 2025 Results
- Large Deals
- Agentic Ai
- Genai Productivity
- Belcan Integration
- Healthcare Demand
Near term
Q3 revenue guidance is only 3.5%-5% growth, with just over 200 basis points of inorganic contribution from Belcan.
Large-deal ramps should support revenue, but management expects second-half investments and merit costs to offset some margin benefit.
The planned $2 billion of 2025 shareholder returns, including approximately $1.4 billion of repurchases, could support near-term valuation.
Health Sciences faces pressure from Medicaid changes and tariff uncertainty affecting life-sciences clients.
Longer term
Bookings quality improved: six Q2 deals exceeded $100 million, including two roughly $1 billion mega-deals, with higher trailing ACV and a mix of renewals, new business, productivity, and innovation work.
AI adoption is broadening, with more than 2,500 early GenAI engagements versus 1,400 in Q1, but Vector 1 productivity work remains materially ahead of the more strategic Vector 2 and Vector 3 opportunities.
Cognizant may gain share if its domain expertise, operations capabilities, and reusable AI tooling create a defensible system-integrator layer around frontier models.
The company is trying to expand from technology implementation into running client processes with combined digital and human labor, which could enlarge the addressable spend but also expose legacy BPO revenue to automation cannibalization.
Competitive risk remains material: frontier-model vendors could move further into consulting, while Cognizant has not yet quantified premium pricing, recurring IP revenue, or margin uplift from its agent platforms.
Red flags
Management described IP-on-the-edge, Agent Foundry, and agentic AI pricing as early-stage and did not provide revenue, attach-rate, backlog, or margin contribution metrics.
The CFO acknowledged limited visibility and disclosed a wide range of possible outcomes, including a negative Q4 exit rate at the low end and only around 1% at the midpoint.
The 7.2% Q2 growth rate benefited from approximately 400 basis points of Belcan inorganic growth, making the underlying organic trajectory less impressive than the headline.
The $400 million third-quarter non-cash tax charge is excluded from adjusted results and does not change the underlying demand uncertainty.
Management pushed back on OpenAI entering services, but the answer relied on the complexity of enterprise implementation rather than evidence that Cognizant can defend pricing against increasingly capable model vendors.
Forward outlook
revenue growth
4–6 pct
FY 2025
official guidance
operating margin
15.5–15.7 pct
FY 2025
official guidance
adjusted eps
5.08–5.22 $per share
FY 2025
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$0.60
Est. revenue
755.0M
Earnings transcripts
- Motley Fool
Zillow (ZG) Q2 2026 Earnings Call Transcript
ZILLOW GROUP, INC.
- Issuer webcast
Q2 2026 earnings call transcript
ZILLOW GROUP, INC.
- Issuer IR
Q2 2026 earnings call transcript
ZILLOW GROUP, INC.
- Issuer IR
Q1 2026 earnings call transcript
ZILLOW GROUP, INC.
- Issuer webcast
Q1 2026 earnings call transcript
ZILLOW GROUP, INC.
- Issuer webcast
Q4 2024 earnings call transcript
ZILLOW GROUP, INC.