ZoomInfo Technologies Inc. (NASDAQ:GTM) is one of the oversold software stocks to buy according to Wall Street analysts. On May 13, Mizuho downgraded ZoomInfo Technologies Inc. (NASDAQ:GTM) from Neutral to Underperform and slashed its price target from $10 to $3. The firm cited ZoomInfo’s deteriorating revenue outlook and the growing risks tied to its business model overhaul.
The downgrade was a response to ZoomInfo’s Q1 2026 financial report, which came out on May 11. In the earnings report, ZoomInfo said that revenue reached $310.2 million, a 1.5% increase year over year. The growth came from the ongoing shift in how the company prices and packages its products.
ZoomInfo’s adjusted earnings per share for the quarter was $0.28, which was well ahead of the $0.26 consensus estimate. Management said during the earnings call that this beat was driven in large part by disciplined cost management. The strategy pushed the adjusted operating margin up 240 basis points year over year to 35%.
Despite the assuring performance, ZoomInfo’s management cut the company’s full-year 2026 revenue outlook to $1.185-$1.205 billion. They had previously guided for $1.247-$1.267 billion. This downward revision was one of the reasons Mizuho downgraded the stock, although the core concern was ZoomInfo’s plan to shift from a subscription-based pricing model to one based on consumption. Mizuho said it views this shift as a path forward, but the analysts are worried that revenue from the new model may not grow fast enough to replace the revenue being lost as customers cancel their existing subscriptions.
ZoomInfo Technologies Inc. (NASDAQ:GTM) is a software and data intelligence company. It provides sales, marketing, recruiting, and operations teams with cloud-based go-to-market intelligence platforms. Its products use artificial intelligence, automation, and proprietary business databases to help enterprises identify prospects, generate leads, and improve customer engagement.
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