Go-to-market intelligence provider ZoomInfo (NASDAQ: GTM) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 1.2% year on year to $310.4 million. Guidance for next quarter’s revenue was better than expected at $299.5 million at the midpoint, 1.6% above analysts’ estimates. Its non-GAAP profit of $0.28 per share was 5.8% above analysts’ consensus estimates.

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StockStory’s Take

ZoomInfo’s second quarter results were met with a positive market reaction, with management attributing performance to ongoing progress in enterprise solutions and a focus on profitability and free cash flow. CEO Henry Schuck emphasized that “operations business, which is primarily data and not tied to seats, continued to perform well, delivering 20% growth and underscoring the durability of that business.” The leadership team highlighted the company’s ability to secure its largest contract to date, as well as resilience in upmarket segments, despite persistent weakness in downmarket and software verticals. Management also pointed to improvements in gross retention, with CFO Michael O’Brien noting that more selective customer onboarding in lower segments helped limit churn.

Looking ahead, ZoomInfo’s updated guidance is shaped by its transition to a hybrid consumption-based pricing model and continued investment in AI-driven go-to-market tools. Management believes the introduction of more flexible pricing and packaging, combined with product releases like GTM.AI and enhanced data integrations, will support long-term customer retention and expansion. Schuck explained, “We have a number of releases coming out in the back half of the year that…completely change the game for go-to-market practitioners.” Leadership acknowledged near-term uncertainty as customers adapt to these changes but remains focused on capitalizing on increased demand for embedded intelligence and Agentic workflows across enterprise clients.

Key Insights from Management’s Remarks

Management credited the quarter’s performance to upmarket expansion, new product capabilities, and continued operational discipline, while also acknowledging challenges in the software and downmarket segments.

• Strong upmarket momentum: The company’s strategic focus on larger enterprise customers resulted in 76% of business now coming from upmarket, with growth in $100,000+ and $1 million+ annual contract value (ACV) customer counts. Management sees this shift as contributing to a more resilient customer base.
• Operations business robustness: Operations, primarily data-driven and not tied to seat-based licenses, posted 20% year-over-year growth. This segment is highlighted as a stable revenue source, especially amid volatility in other verticals.
• Hybrid pricing and packaging transition: The upcoming rollout of a hybrid consumption-based pricing model aims to provide customers with more flexibility, enabling access to ZoomInfo’s platform through both traditional seat licenses and usage-based options. Management is testing various migration pathways before a broad rollout.
• AI integrations and GTM.AI launch: The introduction of GTM.AI, an API-first platform, allows customers to embed ZoomInfo’s data into custom Agentic workflows and applications. This positions ZoomInfo to serve customers who are increasingly building their own AI-driven tools and interfaces.
• Cost discipline and restructuring: Management executed a restructuring plan that reduced headcount by 15% year-over-year, incurring a one-time charge but positioning the company for improved efficiency and profitability. The company also repurchased equity and retired outstanding debt, bolstering its capital structure.

Drivers of Future Performance

Management’s outlook for the coming quarters is anchored by expectations for growth from hybrid pricing, upmarket customer wins, and expanded AI-driven product offerings.

• Hybrid pricing model adoption: The shift to a hybrid consumption and seat-based pricing model is designed to better align with evolving customer buying patterns, particularly as go-to-market teams adopt more programmatic and AI-assisted workflows. Management expects this transition to drive higher retention and incremental expansion opportunities over time.
• AI and embedded data expansion: Continued investment in products like GTM.AI and broader integrations with leading AI platforms (such as Codex, Gemini, and Copilot) are enabling ZoomInfo to embed its data and insights directly into customers’ business processes. Management believes this will deepen customer engagement and support new use cases for go-to-market intelligence.
• Upmarket retention and growth: The focus on large enterprise customers is expected to provide greater revenue stability and expansion potential. Management sees ongoing improvements in gross retention and anticipates that new product capabilities will help offset ongoing headwinds in the software and downmarket segments.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will closely monitor (1) the pace of customer adoption and revenue contribution from the hybrid pricing model, (2) the scalability and market impact of new AI-driven products like GTM.AI, and (3) upmarket customer retention and expansion trends amid ongoing software sector headwinds. We will also watch for progress on cost control and restructuring initiatives as further signs of operational discipline.

ZoomInfo currently trades at $4.07, up from $3.66 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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