Zillow Group, Inc. Q2 2026 Earnings Recap

Zillow’s stock dropped 7.9% following Q2 as investors were likely disappointed by a cautious outlook and signs of deceleration, despite management’s emphasis on growth and platform engagement.

Key Takeaways

• Total revenue grew 18% YoY, above company outlook, driven by 14% growth in For Sale revenue and 31% growth in Rentals.
• Mortgages revenue surged 75% year over year, while residential revenue grew 7% in the For Sale segment.
• AI Mode engagement metrics highlight increased user interaction, though the product remains in early stages with 20% penetration among signed-in users.
• Management emphasized continued growth and brand strength, but did not provide clear upside guidance or margin expansion signals.
• The disconnect between solid revenue growth and the sharp stock decline suggests investor concerns over slowing momentum or future profitability pressures.