Citizens lowered its outlook on ZoomInfo Technologies (ZI), moving the stock from Market Perform to Market Underperform and assigning a price target of $6.00, a level well under the prevailing market price of $7.32.
The analyst action arrived in the wake of ZoomInfo’s fourth-quarter 2025 financial release, which contained mixed signals for investors. On the positive side, non-GAAP earnings per share came in at $0.32, topping the consensus estimate of $0.28. That EPS result represented a roughly 14.29% upside relative to expectations when measured against the $0.28 forecast.
Revenue also exceeded forecasts. The company reported revenue of $319 million, a figure that appears in company reporting as $319.1 million, which was ahead of the consensus expectation of about $309 million (also cited as $309.25 million). Revenue growth year-over-year was 3%, a slowdown from the 5% growth seen in the prior quarter.
Other subscription-related metrics showed a similar moderation. Current remaining performance obligations (cRPO) reached $887 million, above the consensus estimate of $865 million, but the cRPO increase was 4% year-over-year versus 6% growth in the previous quarter. Those decelerating rates help explain part of the caution reflected in the analyst downgrade and the lowered price objective.
Market reaction after the earnings release was muted to negative. ZoomInfo’s shares fell about 1% in after-hours trading following the report. The move came against a broader backdrop in which the stock had already declined approximately 28% year-to-date, while the Nasdaq and the Russell 3000 were each up roughly 2% over the same span.
Despite the headline beats on EPS and revenue, the combination of cooling growth rates and a deep year-to-date drawdown appear to have prompted Citizens to reassess the stock’s near-term risk-reward profile. After the downgrade, the firm’s $6.00 target sat noticeably below the market price at the time, signaling expectations for further downside under the new rating.
What the numbers show
- Non-GAAP EPS: $0.32 vs. consensus $0.28.
- Revenue: $319 million (also reported as $319.1 million) vs. consensus roughly $309 million (also cited as $309.25 million).
- cRPO: $887 million vs. consensus $865 million; cRPO growth 4% year-over-year, down from 6% in the prior quarter.
- Share price: trading at $7.32 at the time of the downgrade; price target set at $6.00.
- Market moves: approximately 1% decline in after-hours trading post-earnings; about 28% year-to-date decline for the stock versus roughly 2% increases for both the Nasdaq and Russell 3000.