IAC (NASDAQ:IAC) Shares Gap Down on Disappointing Earnings

Key Points

• Big earnings miss: IAC reported Q1 EPS of -$0.94 versus a -$0.34 consensus and revenue of $422.9M (est. $520.3M), sending the stock to gap down from $45.17 to an $41.78 open.
• Management cut its 2026 outlook and the company posted an operating and net loss amid a 12.2% year‑over‑year revenue decline; investors are also watching cash of roughly $960M against materially higher liabilities and margin pressure.
• Despite the selloff, several analysts upgraded IAC or raised targets (JPMorgan to Overweight, targets as high as $66), leaving a consensus price target near $51 and an overall "Moderate Buy" view.

IAC Inc. (NASDAQ:IAC - Get Free Report) shares gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $45.17, but opened at $41.78. IAC shares last traded at $42.5660, with a volume of 284,237 shares.

The company reported ($0.94) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.34) by ($0.60). IAC had a negative return on equity of 2.43% and a negative net margin of 4.35%.The business had revenue of $422.89 million for the quarter, compared to analyst estimates of $520.27 million. During the same quarter in the previous year, the firm posted ($2.64) EPS. The business's revenue for the quarter was down 12.2% on a year-over-year basis.

IAC News Summary

Here are the key news stories impacting IAC this week:

• Positive Sentiment: JPMorgan upgraded IAC to "Overweight" and raised its price target from $46 to $52, citing a more constructive view on the company’s assets and upside potential — a near-term catalyst lifting sentiment. JPMorgan Chase & Co. Issues Positive Forecast for IAC
• Positive Sentiment: Several firms have recently issued buy ratings and above-consensus price targets (median around $51; some targets as high as $66), providing additional analyst support for the stock. IAC Inc. (IAC) Stock Falls on Q1 2026 Earnings
• Neutral Sentiment: Ask.com/Ask Jeeves — a legacy asset — was officially shut down; this is largely symbolic for IAC’s portfolio and unlikely to move fundamentals materially. Popular 1990s internet search giant shuts down
• Neutral Sentiment: Transcript from a prior quarter’s earnings call is available for investors who want deeper detail on segment commentary and strategy. IAC (IAC) Q3 2025 Earnings Transcript
• Negative Sentiment: IAC’s Q1 2026 results disappointed: revenue (~$422.9M) missed estimates, the company reported an operating and net loss (EPS -$0.94 vs. consensus near -$0.34), revenue was down year‑over‑year and management cut 2026 outlook — the primary driver of near-term selling pressure. IAC 1Q Revenue Slides as People's Print Business Weighs on Results, 2026 Outlook Cut
• Negative Sentiment: Reported balance-sheet items drew attention: cash of roughly $960M but materially higher total liabilities year-over-year; investors may be focused on margin pressure and how the company will stabilize revenue. IAC Inc. (IAC) Stock Falls on Q1 2026 Earnings

Wall Street Analysts Forecast Growth

Several research firms have issued reports on IAC. Benchmark boosted their target price on IAC from $57.00 to $60.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. TD Cowen boosted their target price on IAC from $60.00 to $66.00 and gave the stock a "buy" rating in a research report on Monday. Zacks Research upgraded IAC from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 11th. The Goldman Sachs Group boosted their target price on IAC from $48.00 to $56.00 and gave the stock a "buy" rating in a research report on Tuesday, April 28th. Finally, Wall Street Zen upgraded IAC from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. Ten research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $51.00.

Institutional Investors Weigh In On IAC

Institutional investors have recently modified their holdings of the company. Elevation Wealth Partners LLC purchased a new stake in shares of IAC during the 4th quarter worth approximately $25,000. Hantz Financial Services Inc. boosted its stake in shares of IAC by 173.4% during the 4th quarter. Hantz Financial Services Inc. now owns 782 shares of the company's stock worth $31,000 after acquiring an additional 496 shares in the last quarter. Advisory Services Network LLC purchased a new stake in shares of IAC during the 3rd quarter worth approximately $38,000. JFS Wealth Advisors LLC purchased a new stake in shares of IAC during the 3rd quarter worth approximately $39,000. Finally, Quarry LP purchased a new stake in shares of IAC during the 4th quarter worth approximately $59,000. Hedge funds and other institutional investors own 88.90% of the company's stock.

IAC Price Performance

The company has a 50 day moving average price of $40.01 and a 200 day moving average price of $37.62. The firm has a market cap of $3.01 billion, a PE ratio of -31.86 and a beta of 1.03. The company has a current ratio of 2.75, a quick ratio of 2.75 and a debt-to-equity ratio of 0.29.

IAC Company Profile

IAC NASDAQ: IAC is a publicly traded holding company headquartered in New York City that builds and invests in consumer-focused internet businesses. Through its portfolio of digital media brands, online marketplaces and subscription services, IAC delivers content and connections across a range of verticals, including lifestyle, finance, home services and personal care. The company's operations span North America and parts of Europe, where its brands reach millions of visitors each month.

In the digital publishing space, IAC's Dotdash Meredith division develops original content and data‐driven journalism across more than a dozen specialty sites.

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