Roku (NASDAQ:ROKU) Announces Quarterly Earnings Results

Key Points

• Roku beat quarterly expectations: Earnings were $1.20 per share versus the $0.53 consensus, while revenue reached $1.50 billion compared with estimates of $1.41 billion.
• Advertising drove growth and profitability: Revenue rose 24% year over year, with advertising revenue up 23% and contributing a larger share of gross profit.
• Investors face limited near-term visibility: Roku provided no earnings call or financial guidance because of the pending approximately $22 billion Fox acquisition; analysts maintain a consensus “Hold” rating with a $156.17 price target.

Roku (NASDAQ:ROKU - Get Free Report) posted its earnings results on Monday. The company reported $1.20 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.67, FiscalAI reports. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.41 billion.

Roku Stock Performance

NASDAQ ROKU traded up $0.40 during trading on Monday, hitting $155.52. The stock had a trading volume of 4,475,162 shares, compared to its average volume of 3,275,080. The company has a market capitalization of $23.08 billion, a PE ratio of 66.46 and a beta of 2.05. The company's 50-day moving average price is $155.15 and its two-hundred day moving average price is $127.57. Roku has a 12 month low of $78.53 and a 12 month high of $160.22.

Analyst Ratings Changes

ROKU has been the subject of a number of research analyst reports. Guggenheim cut Roku from a "buy" rating to a "neutral" rating and boosted their target price for the company from $145.00 to $160.00 in a research note on Friday, August 7th. Zacks Research upgraded Roku from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. Wedbush reiterated a "neutral" rating and issued a $155.00 price objective on shares of Roku in a research report on Thursday, September 24th. Fox Advisors set a $157.00 target price on Roku in a research note on Friday, July 17th. Finally, Citigroup raised their target price on shares of Roku from $120.00 to $157.00 and gave the stock a "neutral" rating in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and eighteen have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $156.17.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported third-quarter earnings of $1.20 per share, more than double the $0.53 analyst consensus, while revenue reached $1.50 billion, exceeding expectations of $1.41 billion. Roku Releases Third Quarter 2026 Financial Results
• Positive Sentiment: Revenue increased 24% year over year, and advertising revenue grew 23%. Advertising also generated a higher gross-profit contribution, supporting Roku’s improved profitability. Roku’s Ads Drive a 7-Fold Jump in Profit
• Positive Sentiment: Roku said Fox has received all foreign regulatory approvals for its proposed acquisition of Roku. The progress reduces uncertainty around the approximately $22 billion transaction and helped narrow the deal spread. Roku/Fox Deal Spread Narrows
• Neutral Sentiment: Roku did not host an earnings call or provide financial guidance because of the pending Fox transaction. Investors therefore have less visibility into fourth-quarter and full-year operating trends. Roku Third Quarter 2026 Financial Results
• Negative Sentiment: Management expects marketing expenses to increase in the fourth quarter. Although lower marketing spending helped the latest quarter’s profit surge, higher upcoming costs could pressure near-term margins. Roku Earnings Reaction

Insider Buying and Selling at Roku

In other news, insider Mustafa Ozgen sold 3,410 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $530,732.40. Following the completion of the transaction, the insider directly owned 25,569 shares of the company's stock, valued at $3,979,559.16. This trade represents a 11.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Charles Collier sold 20,538 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $156.99, for a total transaction of $3,224,260.62. Following the transaction, the insider owned 22,700 shares of the company's stock, valued at $3,563,673. The trade was a 47.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 116,733 shares of company stock valued at $17,851,635 over the last quarter. Insiders own 13.45% of the company's stock.

About Roku

Roku, Inc NASDAQ: ROKU operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.

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