Benchmark reiterated its buy recommendation and raised price target to $80 for Zillow Group (NASDAQ: ZG) following the company’s settlement with the U.S. Federal Trade Commission. The agreement concludes litigation between the two parties, according to analyst Daniel Kurnos of Benchmark.
Zillow’s second-quarter revenue reached $772 million, exceeding the consensus estimate of $757.91 million and marking an 18% year-over-year increase. Net loss narrowed to $4 million, or negative $0.02 per share, compared with a net profit of $0.01 per share in the same period last year. The stock has gained 7.6% over the past week, trading at $37.92.
Benchmark emphasized that the FTC settlement does not alter Zillow’s commercialization strategy, noting the partnership was structured for specific purposes. The firm’s Rentals business analysis remains unchanged, and Kurnos stated the litigation resolution is viewed as favorable.
Reactions to Zillow’s Q2 results were mixed among other analysts. Bernstein downgraded the stock to market-perform, citing concerns over revenue growth. Evercore ISI also downgraded Zillow to neutral, citing a weaker outlook for the second half of 2026 and shifts in monetization strategy. Zillow’s full-year guidance suggests fourth-quarter revenue growth of 8% to 9% at the midpoint, following an expected deceleration to approximately 11% in Q3 from the prior year.
