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The FTC settlement removes a major overhang, with the Redfin syndication agreement remaining intact through at least the mid-2030s and no material change to the go-to-market strategy.

The FTC matter was the last major legal overhang, which should reduce litigation-related sentiment pressure and allow investors to refocus on execution.

The company reaffirmed 3Q/4Q/2026 guidance, including Rentals growth in the high-20s in 3Q and ~30% for 2026.

Benchmark says Zillow continues to beat its own guidance and Street expectations.

The clearest evidence of real outperformance is in Rentals, where revenue grew 31% year-over-year versus Apartments.com at 9%.

Benchmark still sees execution and monetization improving, models 2027 EBITDA of approximately $940 million versus Street approximately $915 million, and reiterates a Buy rating with an $80 price target.

Zillow Rentals is now live as a connected app inside Google Gemini, making it the only real estate platform in Gemini’s connected apps ecosystem.

The integration allows renters to use Gemini to find apartments with tours available on Zillow, streamlining the search and booking process.

The company's presence within one of the largest AI assistants in the world ensures it is available to renters at a critical stage of their search.

Benchmark pushes back on the growing bear case around Zillow, arguing the current battle with Compass, MLSs, and Google is ultimately a fight over listings, while Zillow’s true advantage remains consumer demand and engagement.

The firm believes investors are overstating the risk from MLS feed disputes and Google’s expanding real-estate search products, noting there is little evidence consumers are abandoning Zillow’s position as the primary starting point for home search.

While legal and competitive pressures remain elevated, Benchmark argues Zillow only needs to retain enough inventory and consumer traffic to remain the highest-ROI lead-generation platform, leaving the stock better positioned than current sentiment suggests.

Citi remains constructive on the company, arguing that the competitive threat from Google’s national rollout of its Home Discovery listings product is more limited than headlines suggest.

The firm notes that Zillow continues to benefit from approximately 80% direct traffic mix, an increasingly integrated end-to-end homebuying experience, and a monetization model that has shifted towards success-based referrals through Zillow Preferred.

Citi believes Google’s pay-per-lead approach is more comparable to Zillow’s legacy lead-generation model than its current strategy, which reduces the risk of meaningful share disruption.

RBC reiterated Outperform, noting that the new "Zillow Preview" feature strengthens the company's competitive position and expands its role in the listing funnel by allowing sellers to list homes before MLS entry.

A 10% commission incentive should drive agent adoption, with partners potentially seeing 60–80% more listings than Compass.

The initiative may reduce legal risk, deepen partnerships, and drive incremental monetization across Premier Agent, Showcase, and adjacent products, supporting share gains.