Zillow Group Q1 2026 earnings: revenue up 18%, profit margins widen
Zillow's Q1 2026 revenue grew 18% year over year to $708 million as mortgage and rentals businesses expanded quickly and profitability improved.
| Q1 2026 | Reported |
|---|---|
| EPS | $0.19 |
| Revenue | $708.0M |
Figures as reported by the company to the SEC for the quarter ended March 31, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total revenue rose 18% from a year earlier, landing near the top of the range Zillow had guided to, as growth in home-shopping, rentals and mortgage services all contributed.
- The ‘For Sale’ business (real estate marketplace and mortgages) grew 12% year over year to $514 million; within it, mortgage revenue jumped 56% as more homebuyers used Zillow to get a purchase loan, with loan volume nearly doubling.
- Rentals revenue climbed 42% year over year to $183 million, led by a 57% jump in listings from large apartment landlords (multifamily), an area Zillow has been pushing to expand.
- Net profit margin and per-share earnings improved sharply versus the prior year, reflecting the company converting more of its revenue growth into actual profit rather than just adding sales.
- Zillow bought back $626 million of its own stock during the quarter — about 13.5 million shares — which reduced its cash and investments balance from $1.3 billion to $788 million.
- For the next quarter, Zillow guided to revenue of $750–$765 million and said it expects mid-teens percentage revenue growth and wider profit margins for the full year.
- CEO Jeremy Wacksman said Zillow “once again outperformed the broader housing market,” which he described as essentially flat amid poor weather and volatile interest rates, while adding that housing affordability remains the industry’s central challenge.
- Wacksman pointed to a longer-term $1 billion annualized-revenue target for one of its newer initiatives, calling it a milestone rather than an end goal, as management continues investing in AI tools across the platform.
Q1 2026 in context
| Metric | Mar 2026 | Mar 2025 | Change |
|---|---|---|---|
| Revenue | $708M | $598M | +18.4% |
| Net income | $46M | $8M | +475.0% |
| Free cash flow | $166M | $68M | +144.1% |
| Diluted EPS | $0.19 | $0.03 | +533.3% |
| Gross margin | 73.3% | 76.8% | -3.5 pts |
| Operating margin | 5.1% | -1.5% | +6.6 pts |
| Net margin | 6.5% | 1.3% | +5.2 pts |
Figures for the quarter ended Mar 2026 and the quarter ended Mar 2025, as reported to the SEC.
How the stock took it
Zillow Group Inc closed at $43.88 on May 5, 2026, the last session before the report, and at $44.04 on May 7, 2026, the first session after it — +0.4% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Oct 30, 2025 | $68.87 | $71.53 | +3.9% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · verified fundamentals · earnings call