GTM Stock Forecast & Price Target

ZoomInfo Technologies is viewed favorably because it delivered better-than-feared results, with revenue of $310.0M up 1.5% Y/Y, non-GAAP EPS of $0.28, and unlevered free cash flow of $119.7M, all above expectations. Its 35.4% non-GAAP operating margin and $115.0M of operating cash flow show strong profitability and cash generation even in a challenged selling environment. The 20% workforce reduction, expected to cut annual run-rate operating expenses by about $60M, should improve operating leverage, while buybacks of 13.1M shares for $90M and over $1B of remaining authorization support shareholder returns.

ZoomInfo Technologies is facing a deteriorating fundamental setup as management cut its 2026 revenue midpoint by $62M to about $1.195B, implying roughly 4% year-over-year decline, after a regression in upmarket and downmarket trends, especially in software, and more cautious macro assumptions. The company’s move to a consumption-based pricing model may improve long-term flexibility, but it is likely to pressure near-term revenue visibility, seats, and net retention, which already slipped to 90% from 91% last quarter, while management sees an 18–24 month transition before non-seat-based ACV reaches about half of total ACV. Despite strong cash generation of $120M in unlevered free cash flow in 1Q26, the outlook is weighed down by heavy debt of about $1.3B, only about $175M in cash, and rising competition as customers shift go-to-market workflows into AI-native tools and embedded applications.