SEA (NYSE:SE) Releases Earnings Results, Misses Estimates By $0.10 EPS

Key Points

• SEA missed earnings estimates for the quarter, reporting EPS of $0.67 versus the $0.77 consensus. Despite the miss, the company posted strong revenue of $7.10 billion, which came in above expectations.
• Revenue growth remained very strong, rising 46.6% year over year, and management highlighted continued momentum across the business. The stock jumped on the report, reflecting investor focus on growth over the EPS shortfall.
• Key operating units showed broad strength, with Shopee delivering record results, SeaMoney rapidly scaling loan growth, and Garena posting its best quarter since 2021. Management also noted improving logistics and fulfillment efficiency, especially in Brazil and Taiwan.

SEA (NYSE:SE - Get Free Report) posted its earnings results on Tuesday. The Internet company based in Singapore reported $0.67 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.77 by ($0.10), FiscalAI reports. The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $6.46 billion. SEA had a return on equity of 15.20% and a net margin of 6.93%.The firm's revenue for the quarter was up 46.6% compared to the same quarter last year. During the same period last year, the company posted $0.65 EPS.

Here are the key takeaways from SEA's conference call:

• Sea delivered a very strong Q1 2026, with revenue up 47% year over year to $7.1 billion and adjusted EBITDA topping $1 billion for the first time. Management said it is leaning into growth investments while still maintaining financial discipline.
• Shopee posted record results, with GMV rising 30%, gross orders up 29%, and adjusted EBITDA of $223 million. Monetization improved meaningfully, helped by an 80% jump in ad revenue, faster buyer growth, and stronger engagement from Shopee VIP and content-led shopping.
• Sea is seeing encouraging momentum in logistics and fulfillment, including faster delivery times, lower delivery costs for instant services, and broader adoption of same-day and next-day options. Brazil and Taiwan were highlighted as key areas of expansion, with Brazil remaining profitable while the company continues to build out fulfillment infrastructure.
• SeaMoney continues to scale rapidly, with loan principal outstanding reaching $9.9 billion, up more than 70% year over year, while 90-day NPLs stayed stable at 1.1%. Growth is being driven by deeper penetration with existing users, expansion into off-Shopee use cases, and strong traction in Brazil.
• Garena had its best quarter since 2021, as bookings rose 20% and adjusted EBITDA increased 25% year over year. Free Fire and Arena of Valor both benefited from successful content collaborations and seasonal events, and management said it expects continued strong full-year bookings growth.

SEA Stock Up 12.0%

NYSE:SE traded up $10.19 during trading hours on Tuesday, hitting $95.06. The stock had a trading volume of 8,757,198 shares, compared to its average volume of 5,317,827. The company has a market cap of $58.09 billion, a PE ratio of 37.55, a price-to-earnings-growth ratio of 0.89 and a beta of 1.57. The company has a current ratio of 1.58, a quick ratio of 1.57 and a debt-to-equity ratio of 0.04. The business has a 50 day simple moving average of $86.21 and a two-hundred day simple moving average of $114.63. SEA has a 1-year low of $77.05 and a 1-year high of $199.30.

More SEA News

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Sea reported first-quarter revenue of $7.1 billion, topping analyst estimates and showing continued rapid growth across its business. Sea Limited Reports First Quarter 2026 Results
• Positive Sentiment: The company also posted net income of $438.2 million and adjusted EBITDA of about $1.0 billion, reinforcing that growth is still being backed by solid operating performance. Sea Limited Reports First Quarter 2026 Results
• Neutral Sentiment: Sea’s earnings per share missed estimates at $0.67 versus the $0.77 consensus, which tempers an otherwise strong report. Sea NYSE: SE Delivers Strong Q1 CY2026 Numbers, Stock Soars
• Neutral Sentiment: Several insider sales were disclosed, including transactions by COO Gang Ye and insiders Jingye Chen and Yanjun Wang, but the sales were relatively small compared with their remaining holdings.
• Negative Sentiment: The EPS miss may limit upside if investors become more focused on profitability execution rather than just top-line growth. Sea Limited shares rise on strong revenue beat

Analysts Set New Price Targets

A number of research firms recently issued reports on SE. JPMorgan Chase & Co. dropped their target price on shares of SEA from $170.00 to $168.00 and set an "overweight" rating for the company in a research report on Monday, April 20th. Weiss Ratings reissued a "hold (c-)" rating on shares of SEA in a research report on Friday, March 27th. Morgan Stanley set a $121.00 price objective on shares of SEA and gave the company an "overweight" rating in a research report on Friday, March 13th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $150.00 price objective on shares of SEA in a research report on Tuesday, March 3rd. Finally, Sanford C. Bernstein lowered their price objective on shares of SEA from $170.00 to $150.00 and set an "outperform" rating for the company in a research report on Wednesday, March 4th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, SEA presently has an average rating of "Moderate Buy" and a consensus price target of $161.66.

Insider Buying and Selling

In related news, insider Yanjun Wang sold 800 shares of SEA stock in a transaction on Monday, May 11th. The shares were sold at an average price of $83.74, for a total value of $66,992.00. Following the completion of the sale, the insider owned 18,000 shares in the company, valued at approximately $1,507,320. The trade was a 4.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jingye Chen sold 800 shares of SEA stock in a transaction on Monday, May 11th. The stock was sold at an average price of $83.74, for a total transaction of $66,992.00. Following the completion of the sale, the insider owned 210,400 shares of the company's stock, valued at approximately $17,618,896. This trade represents a 0.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,568,052 shares of company stock worth $137,823,797. Insiders own 0.22% of the company's stock.

Institutional Trading of SEA

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Captrust Financial Advisors increased its stake in shares of SEA by 4.2% in the second quarter. Captrust Financial Advisors now owns 27,188 shares of the Internet company based in Singapore's stock worth $4,348,000 after buying an additional 1,084 shares during the last quarter. Woodline Partners LP bought a new stake in shares of SEA in the first quarter worth $4,028,000. Armistice Capital LLC lifted its stake in SEA by 254.8% during the third quarter. Armistice Capital LLC now owns 22,000 shares of the Internet company based in Singapore's stock worth $3,932,000 after purchasing an additional 15,800 shares during the last quarter. Horizon Investments LLC lifted its stake in SEA by 11.4% during the third quarter. Horizon Investments LLC now owns 9,526 shares of the Internet company based in Singapore's stock worth $1,703,000 after purchasing an additional 978 shares during the last quarter. Finally, Williamson Legacy Group LLC bought a new position in SEA during the third quarter worth $1,232,000. Institutional investors own 59.53% of the company's stock.

SEA Company Profile

Sea Limited NYSE: SE is a Singapore-based consumer internet company that operates a trio of interconnected businesses across digital entertainment, e-commerce and digital financial services. Founded in 2009 as Garena and later rebranded as Sea, the company is headquartered in Singapore and listed on the New York Stock Exchange. Sea positions itself as a technology platform focused on enabling online consumers, merchants and developers primarily across Southeast Asia and adjacent markets.

Sea's digital entertainment arm, Garena, is a game developer and publisher that also organizes esports initiatives and operates online gaming platforms.

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