Zillow Group beats Q1 expectations but shares drop on cautious Q2 revenue forecast.

Zillow Group reported better-than-expected Q1 results with 18% year-over-year revenue growth and improved profit margins, driven by its shift from search to deeper workflow integration. Despite strong free cash flow and share buybacks supporting its value, shares fell about 5% after hours due to a Q2 revenue forecast below market expectations and declining website traffic. The company aims for $5 billion in revenue with 45% margins, highlighting resilience amid AI disruption and cost discipline. Investors should watch upcoming quarters for signs of sustained growth and margin expansion.