By Kit Norton

Shares of ZoomInfo Technologies tumbled Tuesday following the market-intelligence company's decision to slash full-year guidance, leading to several analyst downgrades as artificial intelligence claims another software victim.

The stock sank 32% to $4.13 on Tuesday and was on pace for a record closing low after the company reported late Monday better-than-expected first-quarter earnings and revenue. but reduced its full-year revenue and operating income outlook.

The company expects 2026 sales between $1.185 billion and $1.205 billion, down from its previous view of $1.247 billion to $1.267 billion. ZoomInfo also now forecasts adjusted operating income of $437 million to $447 million, below its earlier $456 million to $466 million expectation. The company maintained its adjusted full-year earnings prediction of $1.10 to $1.12 a share. Wall Street is calling for earnings of $1.10 a share for the year, according to FactSet.

"In a world that is increasingly driven by AI and intelligent automation, ZoomInfo data and our go-to-market context is the ultimate competitive advantage," CEO Henry Schuck said in the earnings release.

However, Wall Street isn't buying it.

BTIG analysts Allan Verkhovski and Nick Dannewitz downgraded ZoomInfo to Neutral from Buy on Tuesday without including a price target.

"When we initiated coverage on GTM last December, we were constructive on the company's differentiated data asset and the potential for accelerating upmarket annual contract value growth, coupled with an AI-driven product cycle to transition the business into a mid-single-digit grower over the next several years. Following the Q1 print, however, we are left with materially higher conviction that questions now extend across the broader business," the analysts wrote.

The firm noted that ZoomInfo as is accelerating a transition to a hybrid pricing model in in the third quarter, which will provide greater pricing flexibility and create a near-term headwind as a number of customers renew at lower price points.

"Our takeaway is that management is increasingly focused on profitability, with an objective of operating at 40% margins upon a return to durable growth," the BTIG analysts wrote. "In our view, GTM is unlikely to receive the benefit of the doubt on a return to durable growth while signs of competitive pressure and AI-related disruption risk continue to mount."

Separately, Canaccord Genuity analyst David Hynes downgraded ZoomInfo to Hold from Buy with a price target of $5, down from $12. Piper Sandler also downgraded ZoomInfo to Underweight from Neutral with a price target of $4, down from $7.

Hynes wrote that ZoomInfo's changes to licensing flexibility to streamline the cost structure are positives for the long-term, but they "effectively put the brakes on any near-term recovery story."

Joining the trend, a Stifel analyst team, led by J. Parker Lane, also downgraded ZoomInfo to Hold from Buy, cutting their price target from $12 to $4.

"During the quarter, the company saw a regression in up and down-market related to AI and agentic confusion, which resulted in elongated sales cycles and caused pauses in purchasing decisions, particularly in the software vertical," the team wrote, adding this was what led to ZoomInfo's decision to cut full-year guidance.

"We think the prudent and necessary move for software incumbents is to pivot to more consumption-based pricing, and we are encouraged to see GTM move in that direction," Stifel analysts added. "However, it's clear that it will take time to work its way through the model, and we struggle to see a catalyst in the near-term as the company works to introduce the new pricing."

ZoomInfo stock has fallen 59% this year and 94% below its record closing high of $77.35 from November 18, 2021. Investors have been selling off software plays with the overwhelming sentiment being that AI will disrupt the industry, rendering some offerings obsolete.

Write to Kit Norton at kit.norton@barrons.com

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May 12, 2026 10:18 ET (14:18 GMT)

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