Zeta Global Holdings Corp. shares tumbled 5.23% during after-hours trading on Tuesday, as investors reacted negatively to the company’s full-year earnings guidance despite better-than-expected second-quarter results.

The company reported Q2 revenue of $443 million, surpassing the consensus estimate of $420.6 million, and swung to a net income of $8 million, or $0.03 per share. However, the focus quickly shifted to Zeta’s outlook for fiscal 2026, where GAAP earnings per share were guided to just $0.09 to $0.11. This fell dramatically short of the LSEG IBES estimate of $0.96 per share, rattling market confidence.

The stark bottom-line shortfall overshadowed the top-line beat and an improved Q3 revenue forecast of $469 million to $472 million, which also came in above analyst expectations. The after-hours decline reflects the market’s sensitivity to the weak profitability projection, even as the company raised its full-year revenue guidance to a range of $1.811 billion to $1.824 billion.