Zeta Global (NYSE:ZETA) Posts Earnings Results, Beats Expectations By $998.88 EPS

Key Points

• Zeta reported a headline EPS of $999.00, beating the $0.12 consensus, but management and analysts note the number is driven by one‑time accounting items so investors are focusing on revenue and guidance instead.
• Underlying momentum was strong: Q1 revenue was $396M (+50% YoY) with adjusted EBITDA of $66M (+42% YoY), and management raised the 2026 revenue midpoint while issuing Q2 and full‑year guidance (~$1.8B).
• Product and deal drivers include heavy early adoption of Athena, wins credited to the Supergraph, and faster‑than‑expected integration of Marigold, but GAAP profitability remains weak (net margin ~‑2.4%) and costs have risen.

Zeta Global (NYSE:ZETA - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $999.00 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $998.88, Zacks reports. Zeta Global had a negative net margin of 2.42% and a positive return on equity of 1.35%.

Here are the key takeaways from Zeta Global's conference call:

• Delivered Q1 revenue of $396M (+50% YoY; +29% ex‑Marigold) and adjusted EBITDA of $66M (+42% YoY), and raised the 2026 revenue midpoint by $30M while increasing adjusted EBITDA and free cash flow guidance.
• Athena adoption was cited as a major driver—management reported a 7x increase in agentic interactions in week one, 60% of AI usage driven by Athena, and said Athena helped win marquee deals (including a global apparel retailer that consolidated four vendors to Zeta).
• Zeta emphasized its proprietary data moat—Supergraph was credited for recent wins and for enabling a Fortune 100 telco expansion expected to drive an ~18x increase in spend with Zeta in 2026 versus 2025.
• Management said the Marigold acquisition is integrating ahead of expectations, with better-than-forecast revenue, rising RPOs and early cross‑sell traction; synergies are expected to benefit margins later in 2026.
• GAAP cost of revenue rose 190 bps to 41% due to a heavier social/agency mix, though adjusted EBITDA beat guidance and GAAP losses narrowed as the company said it is pacing toward full‑year GAAP EPS positivity and continues share repurchases.

Zeta Global Stock Performance

Shares of NYSE:ZETA traded up $0.67 during mid-day trading on Thursday, reaching $18.48. The company had a trading volume of 17,938,290 shares, compared to its average volume of 6,222,793. The company has a current ratio of 1.60, a quick ratio of 1.60 and a debt-to-equity ratio of 0.24. The firm has a market cap of $4.51 billion, a price-to-earnings ratio of 890.50, a PEG ratio of 1.84 and a beta of 1.28. The company's 50-day moving average price is $17.01 and its 200-day moving average price is $18.27. Zeta Global has a one year low of $12.10 and a one year high of $24.90.

Institutional Trading of Zeta Global

Institutional investors have recently modified their holdings of the business. DV Equities LLC purchased a new stake in shares of Zeta Global during the 4th quarter valued at approximately $29,000. Binnacle Investments Inc purchased a new stake in shares of Zeta Global during the 3rd quarter valued at approximately $30,000. National Bank of Canada FI lifted its stake in shares of Zeta Global by 223.1% during the 3rd quarter. National Bank of Canada FI now owns 1,835 shares of the company's stock valued at $36,000 after buying an additional 1,267 shares in the last quarter. Federation des caisses Desjardins du Quebec lifted its stake in shares of Zeta Global by 159.3% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 1,880 shares of the company's stock valued at $38,000 after buying an additional 1,155 shares in the last quarter. Finally, Advisors Asset Management Inc. lifted its stake in shares of Zeta Global by 34.2% during the 1st quarter. Advisors Asset Management Inc. now owns 4,579 shares of the company's stock valued at $62,000 after buying an additional 1,168 shares in the last quarter. 87.75% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Zeta Global

Here are the key news stories impacting Zeta Global this week:

• Positive Sentiment: Company says revenue growth accelerated to ~50% and it delivered a "beats and raises" quarter (19th consecutive). This underpins investor confidence in demand and AI-driven product momentum. Zeta Global Revenue Growth Accelerates to 50% (Business Wire)
• Positive Sentiment: Zeta provided Q2 revenue guidance of $419.0M–$422.0M versus a $416.1M consensus — a mild beat that suggests continued top-line momentum and helped lift sentiment. (Guidance disclosed with Q1 results.)
• Positive Sentiment: Full‑year 2026 revenue guidance of roughly $1.8B was issued in line with expectations, signaling management confidence in sustaining growth for the year. (Guidance disclosed with Q1 results.)
• Positive Sentiment: KeyBanc/KeyCorp has been recently positive on the name (Overweight, $22 target), which supports buying interest from institutional investors. Zeta Global upgraded to overweight (MSN)
• Neutral Sentiment: Zeta reported a headline EPS of $999.00 for the quarter (a very large beat vs. the $0.12 consensus) — this appears driven by one‑time accounting items and is not a sustainable operating profit signal; investors are focused more on revenue and guidance. View Press Release
• Neutral Sentiment: Pre‑earnings press coverage emphasized AI tailwinds and inclusion on lists of SaaS names to own into results, which likely amplified positive investor positioning. Wall Street warms to Zeta Global (Yahoo)
• Negative Sentiment: Despite revenue strength, Zeta still reported a negative net margin (~‑2.4%) and historically modest profitability metrics; investors may discount the EPS beat until underlying margins and recurring profitability improve. View Press Release

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ZETA shares. Morgan Stanley boosted their target price on shares of Zeta Global from $23.00 to $27.00 and gave the company an "equal weight" rating in a research note on Thursday, January 15th. KeyCorp upgraded shares of Zeta Global from a "sector weight" rating to an "overweight" rating and set a $22.00 price target for the company in a research note on Tuesday. DA Davidson lifted their price target on shares of Zeta Global from $29.00 to $30.00 and gave the stock a "buy" rating in a report on Thursday, February 26th. Wall Street Zen raised shares of Zeta Global from a "hold" rating to a "buy" rating in a report on Saturday, April 11th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Zeta Global in a report on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $28.27.

About Zeta Global

Zeta Global, founded in 2007 and headquartered in New York City, is a leading data-driven marketing technology company. The firm's mission centers on helping brands acquire, grow and retain customers through a unified customer lifecycle management platform. Over the years, Zeta Global has built a reputation for leveraging big data and predictive analytics to power digital marketing programs across multiple channels.

At the core of Zeta's offering is the Zeta Marketing Platform, which combines identity resolution, audience insights and real-time engagement capabilities.

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