ZoomInfo Technologies Inc. (GTM) experienced a significant pre-market plunge of 9.56% on Tuesday, as investor sentiment turned negative following the company's latest financial updates.
The sell-off was triggered by ZoomInfo's first-quarter 2026 revenue guidance of $306 million to $309 million, which indicates a sequential decline from the fourth quarter's $319.1 million. While the company reported strong Q4 2025 results that beat analyst estimates, with adjusted earnings of $0.32 per share versus the $0.28 consensus and revenue of $319.1 million exceeding the $309.4 million expectation, the forward outlook overshadowed these positive results.
Adding to the pressure, JP Morgan cut its price target on ZoomInfo to $12 from $14. The full-year 2026 revenue guidance of $1.25 billion to $1.27 billion implies significantly slower growth compared to the 3% increase achieved in 2025, ranging from a slight decline to minimal expansion.