Company forecasts low- to mid-single-digit revenue decline for Q3 as AI-generated code adoption accelerates by late 2026.
Ziff Davis (ZD) projected Q3 revenue to fall by low- to mid-single digits, citing rapid adoption of AI-authored code expected to impact nearly all segments by the end of 2026. The outlook reflects broader industry shifts toward automation and efficiency gains in software development.
In Q2 2026, Ziff Davis completed the sale of its Connectivity business to Accenture for $1.2 billion, a deal valued at 14.5 times the unit’s trailing earnings. The divestiture aligns with the company’s strategy to streamline operations amid evolving market conditions.
Management did not disclose immediate market reactions to the revenue guidance or asset sale during the earnings call.