ZoomInfo Technologies Inc. (GTM) experienced a significant 5.33% decline in post-market trading on Monday. The stock's sharp drop followed the company's release of its fourth-quarter and full-year 2025 financial results.
Despite reporting strong Q4 performance with adjusted earnings of $0.32 per share, beating the analyst estimate of $0.28, and revenue of $319.1 million, surpassing expectations of $309.4 million, investor sentiment turned negative. The primary driver of the sell-off was the company's guidance for the first quarter of 2026, which projected revenue between $306 million and $309 million, indicating a sequential decline from the previous quarter's results.
Furthermore, the full-year 2026 revenue outlook of $1.25 billion to $1.27 billion implies significantly slower growth, ranging from a slight decline of 0.2% to growth of 1.4%, compared to the 3% revenue growth achieved in 2025. This forecast for decelerating growth overshadowed the positive quarterly earnings beat, leading to the stock's plunge in the extended session.