Roku (NASDAQ:ROKU) Issues Earnings Results, Beats Estimates By $0.67 EPS

by · The Cerbat Gem

Roku (NASDAQ:ROKU – Get Free Report) issued its earnings results on Monday. The company reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.41 billion.

Roku Stock Up 0.3%

Shares of Roku stock traded up $0.40 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. Roku has a twelve month low of $78.53 and a twelve month high of $160.22. The business’s 50 day moving average is $155.15 and its two-hundred day moving average is $127.57. The stock has a market cap of $23.08 billion, a price-to-earnings ratio of 66.46 and a beta of 2.05.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on ROKU shares. Seaport Research Partners downgraded shares of Roku from a “buy” rating to a “neutral” rating in a research report on Friday, August 7th. JPMorgan Chase & Co. began coverage on shares of Roku in a report on Monday, August 24th. They issued a “neutral” rating and a $160.00 target price on the stock. Rosenblatt Securities reissued a “buy” rating and set a $160.00 price target on shares of Roku in a research report on Monday, August 10th. Wells Fargo & Company lowered Roku from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $167.00 to $165.00 in a research note on Friday, August 14th. Finally, Zacks Research raised Roku from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eighteen have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $156.17.

View Our Latest Stock Report on ROKU

Insider Buying and Selling at Roku

In other Roku news, insider Gilbert Fuchsberg sold 4,824 shares of the company’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total value of $750,807.36. Following the transaction, the insider directly owned 40,168 shares of the company’s stock, valued at $6,251,747.52. This represents a 10.72% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 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, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $151.09, for a total value of $302,180.00. Following the transaction, the director owned 9,629 shares in the company, valued at $1,454,845.61. The trade was a 17.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 116,733 shares of company stock worth $17,851,635 in the last 90 days. Company insiders own 13.45% of the company’s stock.

Roku News Summary

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

About Roku

(Get Free Report)

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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