| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 3.2x | 17.8x | Top tier | |
Growth | 56 | 7.8% | 7.1% | Around median | |
Quality | 71 | 2.9% | 4.5% | Top tier | |
Safety | 66 | — | 2.6x | Around median | |
Capital Return | 63 | — | 2.12% | Around median | |
Momentum | 95 | 39.5% | 2.9% | Top tier | |
Sentiment | 33 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ziff Davis operates a portfolio of specialized digital brands across four segments following the sale of the Connectivity business: Technology & Shopping, Gaming & Entertainment, Health & Wellness, and Cybersecurity & Martech. Its assets include CNET, PCMag, IGN, Humble Bundle, MedPage Today, Lose It!, IPVanish, and smtp.com, and it generates revenue from advertising and performance marketing, subscriptions and licensing, and other sources such as the Semantic Labs business. In Q2 FY2026, advertising and performance marketing revenue declined 6% year over year, subscription and licensing revenue remained nearly stable, while other revenue increased by approximately $3.7 million and more than doubled its previous level, supported by Semantic Labs.
Q2 FY2026 revenue was approximately $286.7 million, down 2.7% from $294.8 million, and gross profit was $241.0 million, representing a calculated gross margin of approximately 84.1%. The financial statements reported net income of $624.5 million and earnings per share of $17.16, coinciding with the completion of the sale of Connectivity to Accenture for $1.2 billion, while adjusted EBITDA from continuing operations was $76.8 million with a margin of 26.8%, compared with $79.8 million and 27.1% in Q2 FY2025. Adjusted diluted earnings per share rose 13.2% to $1.03, driven primarily by a lower share count resulting from repurchases.
The performance mix was varied in Q2 FY2026: Technology & Shopping revenue declined 5% while its adjusted EBITDA increased by more than 8%, Gaming & Entertainment revenue grew by approximately 1%, Health & Wellness revenue declined by nearly 5% and its adjusted EBITDA by nearly 10%, while Cybersecurity & Martech revenue and adjusted EBITDA each grew by approximately 1%. The company generated free cash flow of $54 million, up 100% year over year, and ended the quarter with approximately $1.6 billion in cash and cash equivalents and $100 million in long-term investments, with cash exceeding outstanding debt by $734 million.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $61.5, which is above the top of the 52-week range of $58.06, within a wide target range of $48 to $75, with the consensus rating classified as Buy. No published price-to-earnings ratio is available, and Q2 FY2026 net income of $624.5 million and earnings per share of $17.16 coincided with the sale of Connectivity for $1.2 billion; therefore, the quarterly figure alone is not suitable as a recurring basis for valuation. The risks of revenue contraction and AI-powered search disruption remain an important justification for the wide range of analyst targets.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
EDGAR filings showed net income of $624.5 million and earnings per share of $17.16 in Q2 FY2026, compared with revenue of $286.7 million. These figures coincided with the completion of the sale of Connectivity to Accenture for $1.2 billion, while the company explained that continuing operations results exclude the partial-period results of the sold business and present them within discontinued operations. To evaluate the continuing business, management provided adjusted diluted earnings per share of $1.03 and adjusted EBITDA of $76.8 million, metrics that are less affected by the large transaction.
Management said on the August 7, 2026 call that the percentage of queries related to the company's sites that display Google's AI-powered summaries increased from approximately 36% to 50%. The decline in traditional search referrals contributed to a 5% decline in Technology & Shopping revenue in Q2 FY2026, following declines of 13% in the previous quarter and 18% in Q4 FY2025. The company is attempting to offset this through Instagram, Facebook, TikTok, YouTube, newsletters, connected television, and events, in addition to converting citations of CNET, PCMag, and IGN in AI answers into marketing partnerships.
The sale of Connectivity to Accenture was valued at approximately $1.2 billion, based on a multiple of 14.5 times adjusted EBITDA less capital expenditures for the last 12 months. The company plans to use approximately $200 million to settle tax obligations related to the transaction, with the vast majority to be paid by the end of Q1 FY2027, and it will also repay in cash $149 million of convertible debt due on November 1, 2026. At the same time, it spent more than $200 million to repurchase 4.5 million shares from the beginning of 2026 through the date of the call, while keeping acquisitions small at $9.2 million during the same period.
Cybersecurity & Martech was one of the positive areas, with revenue and adjusted EBITDA growing by approximately 1%, supported by IPVanish's fifth consecutive quarter of growth and double-digit growth at smtp.com. Gaming & Entertainment revenue grew by nearly 1% due to a record quarter at Humble Bundle, but the segment's adjusted EBITDA declined slightly because of marketing and content costs and weakness in IGN advertising. In contrast, Technology & Shopping revenue declined 5% despite an increase of more than 8% in its adjusted EBITDA, while Health & Wellness revenue declined by nearly 5% and its adjusted EBITDA by nearly 10% due to weakness in healthcare professional advertising at MedPage Today.
Management expects Q3 FY2026 revenue to increase sequentially but remain lower by a low- to mid-single-digit percentage than the prior year, with a modest improvement in adjusted EBITDA margin compared with Q2 FY2026. In Q4 FY2026, the company expects a further improvement in the rate of revenue decline, but the adjusted margin will remain slightly lower year over year. It also expects adjusted earnings per share to continue benefiting from the lower share count, while the non-GAAP tax rate remains between 24% and 25% annually, excluding taxes on the Connectivity sale.
By the August 7, 2026 call, the majority of new or updated code at Ziff Davis was AI-authored, after its share nearly doubled during a single quarter. The company's teams shipped 24% more code in Q2 FY2026 compared with Q1 FY2026, with fewer engineering employees and stable initial quality indicators. Management aims for nearly all code to be AI-authored before the end of 2026, and Humble Bundle has already used an agentic programming approach in redeveloping its platform to accelerate feature launches.
