Zeta Global beats estimates as revenue outlook tops consensus

By Grace Kim

What did the quarter show?

Zeta Global Holdings Corp. (NYSE: ZETA) shares rose 7.4% on Tuesday after the marketing-technology company posted third-quarter earnings per share (EPS) of $0.38, beating the $0.28 consensus estimate by $0.10. Revenue reached $492.66 million, ahead of the $471.08 million estimate.

Zeta shares traded as high as $34.92 and last traded at $34.83, compared with a $32.42 prior close. Approximately 3,105,205 shares traded by midday, 62% below the 8,120,875-share average daily volume.

Revenue climbed 46.1% from the same quarter a year earlier, when EPS stood at $0.18. Zeta also generated positive GAAP (generally accepted accounting principles) net income in the quarter and year to date. Return on equity (ROE), profit relative to shareholders’ equity, was 5.32%; net margin, profit as a share of revenue, was negative 0.15%.

Takeaway: The quarter beat on both headline measures, although the margin figures still show a mixed earnings picture.

What does the outlook imply?

Management guided fourth-quarter (Q4) revenue to $521 million–$525 million, above the $510.1 million consensus estimate. Management put full-year 2026 (FY2026) revenue guidance at about $1.9 billion, compared with a cited $1.8 billion consensus.

The same forecast called for FY2026 GAAP EPS of $0.22–$0.24, below the cited $0.80 consensus estimate. The figures may reflect different earnings definitions, complicating a direct comparison between the company’s outlook and analyst estimates.

Management also highlighted artificial intelligence (AI) adoption and new enterprise opportunities, without further detail.

Takeaway: The revenue forecast sits above consensus, while the profit forecast remains far below it.

How did analysts revise their views?

• Royal Bank of Canada raised its price target to $41 from $40 on Tuesday and maintained an “outperform” rating. The target stood 26.7% above the cited $32.36 share price.
• Needham & Company LLC reiterated a buy rating on Tuesday.
• Craig Hallum set a $38 target price in a Monday, October 12 report.
• Wall Street Zen upgraded the shares from hold to buy on Sunday, August 9.
• Canaccord Genuity Group raised its target to $37 from $30 and assigned a buy rating on Friday, October 9.

Twelve research analysts rate the stock a buy, two hold and one sell. MarketBeat.com lists the average rating as “Moderate Buy” and the consensus target price at $37.25.

Takeaway: Most analyst ratings leaned positive, but they did not resolve the gap between revenue guidance and EPS guidance.

Who increased their stakes?

Five institutional investors recently increased their Zeta positions:

• Bank of America Corp DE raised its stake 47.7% in the first quarter. It now holds 3,853,723 shares worth $61,351,000 after buying 1,244,057 shares.
• Dimensional Fund Advisors LP increased its position 75.7% in the first quarter to 2,864,071 shares worth $45,583,000, after purchasing 1,234,412 shares.
• Russell Investments Group Ltd. raised its position 50.3% in the third quarter to 925,219 shares worth $29,209,000, after acquiring 309,449 shares.
• Principal Financial Group Inc. grew its holdings 7,696.7% in the first quarter to 868,239 shares valued at $13,822,000, after purchasing 857,103 shares.
• Bank of New York Mellon Corp added 2.3% in the first quarter, taking its holding to 830,888 shares worth $13,228,000 after buying 18,550 shares.

Institutional investors and hedge funds own 87.75% of the company’s stock.

Takeaway: The position increases were broad, and institutional ownership remains concentrated.

What do valuation and liquidity show?

The 50-day moving average was $31.72, versus $22.83 for the 200-day average. Zeta’s market capitalization reached $8.74 billion.

The price-to-earnings (P/E) ratio was negative 1,738.25, the P/E-to-growth (P/E/G) ratio was 4.48, and beta (a measure of market sensitivity) was 1.25.

The current ratio (short-term assets relative to liabilities) and quick ratio (a stricter liquidity measure) both stood at 2.38, while the debt-to-equity ratio was 0.21.

Takeaway: Liquidity ratios were above 1, while the negative P/E makes trailing earnings comparisons unusual.

What does Zeta Global do?

Founded in 2007 and headquartered in New York, Zeta Global serves businesses across multiple markets. Its marketing-technology platform combines consumer data, analytics and campaign tools to identify audiences and engage customers throughout the marketing lifecycle.

Its products support customer acquisition, engagement and retention across email, mobile, social media and the web. The Zeta Marketing Platform and Zeta Data Cloud help clients manage audience insights and coordinate campaigns.

Takeaway: Zeta’s growth model joins consumer data, analytics and campaign execution.

The forward test is whether management can convert enterprise and AI adoption into earnings closer to consensus.