Zillow Group (Z) Q2 2026: Strong Beat but Guidance Sparks Selloff
As seen on the 24/7 Wall St. homepage on August 5, 2026.
Mortgage revenue jumped 75% to $84 million, yet the stock is selling off after management cut its industry view to a low to mid single digit decline in purchase originations for the rest of 2026. Full-year revenue guidance of $2.92 billion to $2.96 billion is what the call has to defend.
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Zillow posted Q2 2026 earnings per share of $0.52, clearing the consensus estimate of $0.45 by nearly 15%, while revenue of $772 million came in about 2% above the $758 million Wall Street had expected. The standout inside the report was mortgage revenue, which surged 75% to $84 million, signaling that Zillow's push deeper into the home-financing stack is gaining real traction.
The market reaction turned negative on the call, where management revised its outlook for the broader mortgage market to a low to mid single-digit decline in purchase originations for the remainder of 2026. That industry-level caution landed harder than the beat, because purchase originations are the fuel that drives Zillow's transaction-dependent business lines.
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Full-year revenue guidance of $2.92 billion to $2.96 billion is now the number investors will be measuring every data point against. The tension between a strong mortgage-revenue print and a dimmer industry forecast is the central story heading into the back half of the year.