ZoomInfo's AI-Driven Growth and Valuation Potential: A Compelling Long-Term Buy?

In late 2025, ZoomInfo (GTM) has emerged as a focal point for investors, driven by a recent 'Buy' rating from BTIG and a strategic pivot toward AI-powered go-to-market (GTM) solutions. The stock's 5% surge following the analyst upgrade underscores growing confidence in the company's ability to navigate macroeconomic headwinds while capitalizing on sector-specific tailwinds. This article evaluates whether ZoomInfo's de-risked growth trajectory, bolstered by AI innovation and improved profitability, justifies a long-term investment thesis.

Strategic AI-Driven Growth: A Catalyst for Competitive Edge

ZoomInfo's strategic focus on AI has positioned it as a leader in the B2B SaaS space. The company's GTM Workspace and GTM Studio tools, enhanced in 2025, leverage AI to automate data enrichment, predictive lead scoring, and workflow optimization, directly addressing pain points in sales and marketing operations according to analysis. These innovations have not only improved customer retention-evidenced by a 90% net revenue retention (NRR) rate in Q3 2025-but also expanded the upmarket segment, which now accounts for 73% of total annual contract value (ACV) as reported.

The success of these AI-driven solutions is reflected in ZoomInfo's ability to secure its largest-ever contract, an eight-figure deal closed after an 11-month sales cycle. This achievement highlights the company's capacity to deliver scalable, high-impact solutions to enterprise clients, a critical factor in sustaining growth in a competitive market according to internal data. Furthermore, AI's role in reducing manual tasks-such as data cleansing and campaign testing-has enabled ZoomInfo's clients to achieve productivity gains of up to 47%, according to internal metrics.

Financial Performance: Profitability and Operational Efficiency

ZoomInfo's financials in Q3 2025 demonstrate a clear de-risking of its growth model. The company reported a 37% adjusted operating income margin, the highest since 2024, alongside a 5% year-over-year revenue increase to $318.0 million as per Q3 2025 results. This margin expansion, coupled with a 37% adjusted operating income of $117.7 million, signals improved cost discipline and pricing power, particularly in the upmarket segment as reported.

Operational efficiency has also been a hallmark of ZoomInfo's strategy. The company reduced its employee headcount while maintaining growth, a move BTIG highlighted as a key factor in its bullish rating. Share repurchases totaling $86.6 million in Q3 2025 further underscore management's confidence in the business's capital allocation, with 8.3 million shares repurchased at an average price of $10.46 as reported.

Sector Tailwinds: AI Adoption and Interest Rate Dynamics

The broader B2B SaaS sector is undergoing a transformation driven by AI adoption. According to industry analysis, AI tools that integrate into enterprise workflows-such as ZoomInfo's Copilot-command valuation multiples of 8–12x revenue, significantly higher than the median 6.0x for the sector according to research. This premium is justified by AI's ability to deliver measurable ROI, particularly in sales and marketing automation, where ZoomInfo's clients report 20–30% reductions in cost per acquisition according to client data.

Interest rate expectations also play a pivotal role in ZoomInfo's valuation. As of 2025, the SaaS sector trades at a median 6.0x enterprise value/revenue (EV/Revenue), a stabilization from the post-2021 corrections driven by Fed rate hikes according to industry analysis. However, companies with strong Rule of 40 metrics (growth rate + profit margin >40%)-such as ZoomInfo, which reported a 37% margin and 5% revenue growth-see their multiples rise by 2.2x compared to peers according to valuation research. BTIG's $13 price target, implying a 32.16 P/E ratio, aligns with this trend, as the firm argues ZoomInfo's AI-driven efficiency and profitability make it less sensitive to rate volatility than unprofitable SaaS peers according to analyst commentary.

Valuation Justification: A Buy for the Long Term?

ZoomInfo's valuation appears compelling when viewed through the lens of sector trends and operational execution. Its Rule of 40 score (growth + margin) exceeds the industry average, and its upmarket ACV mix of 73%-a 10-percentage-point increase over two years-demonstrates a sustainable path to higher-margin revenue as reported. Additionally, the company's ability to secure multi-year contracts (with pricing discounts of 10–20%) and manage hidden fees-such as overage charges for enrichment credits-further strengthens its long-term profitability .

However, risks remain. The SaaS sector's valuation multiples are still sensitive to macroeconomic shifts, and ZoomInfo's reliance on AI-driven differentiation means it must continue innovating to maintain its edge. That said, the company's $1.237–$1.240 billion full-year 2025 revenue guidance and BTIG's bullish stance suggest a strong alignment between strategic execution and investor expectations as reported.

Conclusion

ZoomInfo's strategic pivot to AI, combined with its improved profitability and sector tailwinds, presents a compelling case for a long-term investment. The recent analyst upgrade from BTIG, supported by the company's largest-ever contract and robust financial metrics, underscores its potential to outperform in a maturing SaaS market. While macroeconomic uncertainties persist, ZoomInfo's focus on upmarket expansion, operational efficiency, and AI-driven value creation positions it as a resilient player in the B2B SaaS landscape. For investors seeking exposure to AI-enabled growth with a de-risked model, ZoomInfo's current valuation offers an attractive entry point.