Zeta Global Holdings Corp. (NYSE: ZETA) saw its shares rally in late-morning trading on Friday, May 1, 2026, after the marketing technology company delivered a robust first-quarter earnings report and raised its 2026 revenue and free cash flow targets. The stock was trading at $19.17, up 75 cents, reflecting investor enthusiasm over the company's accelerating growth trajectory.
The company reported first-quarter revenue of $396.3 million, a 50% increase year-over-year and well above the consensus estimate of $370.4 million. This growth was fueled by strong adoption of its Athena by Zeta AI marketing agent, which during its launch week delivered over seven times more agent interactions and accounted for more than 60% of AI platform activity. The company also raised its full-year revenue midpoint to $1.785 billion, a $30 million increase from prior guidance.
Financial Highlights and Guidance
Adjusted EBITDA climbed to $66.1 million from $46.7 million in the same period last year, while free cash flow improved to $41.7 million from $28.2 million. Zeta guided second-quarter revenue between $419 million and $422 million, surpassing the $415.5 million consensus, and full-year revenue of $1.779 billion to $1.792 billion, above the $1.76 billion consensus.
Chief Executive David A. Steinberg highlighted that "Athena removes the barrier to enterprise-wide adoption," while Chief Financial Officer Chris Greiner noted the company's 19th consecutive beat-and-raise quarter as evidence of "sustained demand" in a market increasingly favoring platforms with proven results at scale.
Customer Growth and Marigold Contribution
Zeta's "super-scaled" customers—those generating at least $1 million in trailing twelve-month revenue—increased to 189, up from 159 a year ago. Average revenue per such customer rose 21% to $1.7 million. The Marigold acquisition contributed $55.6 million in first-quarter revenue, with the company guiding for roughly $198 million from Marigold in 2026. Excluding Marigold and political contributions, first-quarter revenue was $341 million, up 29%.
Analyst Reactions and Competitive Landscape
Analysts responded positively. Needham's Scott Berg reiterated a Buy rating and $25 price target, highlighting the quarter's strength, Marigold's standout performance, and Athena's progress. William Blair's Arjun Bhatia also maintained a Buy rating, noting improved organic growth and broader customer adoption. KeyBanc's Jack Nichols had raised his price target ahead of earnings, suggesting the company might be in the "early innings of a multi-pronged inflection" driven by Athena.
In its Q1 2026 analysis of email marketing service providers, Forrester ranked Zeta alongside Adobe, Braze, Salesforce, and eight others, with Zeta achieving the top strategy score. However, competition remains intense, and the company faces challenges including a GAAP net loss of $13.2 million and stock-based compensation of $53.0 million.
Risk Factors and Margin Considerations
Zeta cautioned that its guidance is subject to risks including macroeconomic uncertainties, AI trends, data-collection restrictions, and client retention. Nichols also noted that about a third of Zeta's revenue flows through lower-margin outside channels like social media, which could cap free cash flow growth. The key question is whether Athena can drive higher usage without inflating operating costs.