Zillow Shares Fall 7% on Q1 Results, FTC Alleges $100M Anti-Competitive Payment
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Zillow Group reported its first-quarter 2026 results, with revenue up 18% year-over-year to $708 million, GAAP net income of $46 million, and adjusted EPS of $0.53. The company also executed $626 million in share buybacks. Following the earnings release, Zillow's shares declined approximately 7.4% in after-hours trading. Concurrently, the Federal Trade Commission (FTC) has alleged that Zillow paid Redfin approximately $100 million over nine years to terminate advertising contracts, syndicate Zillow listings, and restrict rivals' access to listings and ads. This news follows yesterday's report that a federal judge rejected Zillow's motion to dismiss the antitrust lawsuit. The combination of the negative market reaction to Q1 results and the specific, material allegations from the FTC regarding anti-competitive practices presents significant headwinds for Zillow, impacting investor sentiment and potentially leading to substantial legal liabilities. Analysts have already begun cutting price targets, reflecting increased caution. Investors should closely monitor the progression of the FTC lawsuit and its potential financial implications.
At the time of this announcement, Z was trading at $43.68 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $10B. The 52-week trading range was $39.05 to $93.88. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.