Zillow Q3 revenue rises 7% despite weak housing market

Overview

• US real estate platform's Q3 revenue rose 7% yr/yr, outperforming the broader real estate category

• Company posted Q3 net loss, compared to net income a year ago

• Adjusted net income and adjusted EPS increased yr/yr

Outlook

• Zillow did not provide specific financial guidance for Q4 or full-year 2026

Result Drivers

• HIGHER MORTGAGE RATES - Co said elevated mortgage rates reduced housing transaction volume, weighing on residential revenue

• MORTGAGE ORIGINATION GROWTH - Co attributed higher mortgage revenue to increased purchase loan origination volume

• RENTALS DEMAND - Co said growth in rentals revenue was driven by strong multifamily segment performance

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate services peer group is "buy"

• Wall Street's median 12-month price target for Zillow Group, Inc. is $42.00, about 34% above its November 3 closing price of $31.35

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 2 - Realty Income's Q3 revenue beats; raises 2026 AFFO per share outlook

• Nov 3 - LGI Homes Q3 adjusted EPS beats on higher closings, cost controls

• Nov 2 - Offerpad Q3 revenue falls 41% as housing demand slows

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)