New York, May 25, 2026, 17:03 EDT
ZoomInfo Technologies Inc. heads into Tuesday’s U.S. market reopening near a one-year low after another week of selling, leaving investors to decide whether its AI-and-pricing reset is a fix or a fresh revenue drag.
The Nasdaq-listed shares, now trading under the ticker GTM, closed Friday at $3.61, up 1.1% on the day but down about 6.5% from the prior Friday close. The stock traded last week between $3.46 and $4.05, keeping it close to the bottom of its 52-week range. Investing
That underperformance stands out because the broader market had a better week. U.S. exchanges were shut Monday for Memorial Day, while the S&P 500 rose 0.9%, the Dow gained 2.1% and the Nasdaq added 0.5% in the week ended May 22. New York Stock Exchange
The issue now is not just the last print. It is whether buyers return after a long weekend to a small-cap software name that has already absorbed a large guidance cut, a workforce reduction and a new set of analyst downgrades.
The pressure follows ZoomInfo’s May 11 report. The company said first-quarter revenue rose 1.5% to $310.2 million and adjusted operating income — a non-GAAP profit measure that excludes some costs — rose 9% to $109.7 million, but it cut full-year revenue guidance to $1.185 billion-$1.205 billion from a prior $1.247 billion-$1.267 billion. ZoomInfo also said it had 1,900 customers with $100,000 or more in annual contract value, or committed subscription revenue, down 21 from the prior quarter, and listed a May 27 appearance at the Jefferies Software Conference among upcoming investor events. SEC
Cost cuts came with the reset. A filing showed ZoomInfo’s board approved a restructuring plan expected to affect about 600 employees, or roughly 20% of first-quarter headcount, with estimated pre-tax charges of $45 million to $60 million and expected annual run-rate operating expense savings of about $60 million. Run-rate expenses refer to costs measured as if the current pace continues for a full year. SEC
Chief Executive Henry Schuck told employees the company planned to close its Israel site by year-end and was shifting resources upmarket. “The way our customers buy is shifting,” he wrote, pointing to consumption-based pricing — a model where clients pay more by usage rather than only fixed user seats. SEC
Analysts have not treated that as a clean positive. Jefferies analyst Surinder Thind downgraded ZoomInfo to Hold from Buy and cut his price target to $4 from $12, saying the firm had “materially reduced” its revenue-growth outlook for 2026 and did not expect conditions to improve in 2027. Jefferies cited weak client demand and artificial intelligence changing enterprise buying behavior. Investing
Piper Sandler analyst Billy Fitzsimmons also turned more cautious, cutting the stock to Underweight with a $4 target and calling the guidance change a “material expectations reset.” He cited churn in the software customer vertical, weaker upmarket momentum and execution risk from the move toward consumption pricing. Investing.com Canada
Competition gives the change more bite. Gartner Peer Insights lists Sales Navigator, D&B Hoovers and Apollo Platform among top alternatives to ZoomInfo Sales, underscoring that customers weighing data and sales-intelligence tools have other places to spend if pricing, workflow or AI tools move faster elsewhere. Gartner
The bull case is still there, but it needs proof. If enterprise customers use more data through the new model, ZoomInfo could trade near current levels as investors focus on cash flow, buybacks and cost savings rather than near-term revenue shrinkage.
But the risk is that renewals reset lower before usage grows. BTIG downgraded the stock to Neutral after saying the quarter left it with “materially higher conviction” that questions extend across the business, and warned the hybrid pricing rollout could become a near-term headwind as some customers renew at lower price points. TipRanks
That puts Tuesday’s open in a narrow frame. ZoomInfo does not need a broad market rally to recover. It needs investors to believe the lower guide was a bottom, not the first marker in a longer fight over how B2B data gets bought in an AI-heavy software market.
