Shares of Roku Inc (NASDAQ:ROKU) rallied in early trading on Friday, after the company reported upbeat first-quarter results.
Here are the key analyst insights:
- KeyBanc Capital Markets analyst Justin Patterson maintained an Overweight rating, while raising the price target from $140 to $150.
- JPMorgan analyst Cory Carpenter reiterated an Overweight rating, and raised the price target from $125 to $150.
- Rosenblatt Securities analyst Barton Crockett reaffirmed a Buy rating, and raised the price target from $118 to $150.
- Needham analyst Laura Martin reiterated a Buy rating, while taking the price target higher from $110 to $140.
Check out other analyst stock ratings.
KeyBanc Capital Markets: Roku reported revenues of $1.25 billion EBITDA of $148 million. It topped consensus estimates of $1.20 billion and $131 million, respectively. Key positives of the quarter, Patterson said in a note, include:
- The company's advertising revenue growth accelerated to 27% year-on-year, benefiting from third-party (3P) DSPs (demand-side platforms)
- This was the quarter for sign-ups, while subscriptions were growing by 30% year-on-year
Roku announced an expanded integration with Google DV360 in March. This gives Roku “broad coverage among major DSPs (Roku also works with the Amazon DSP, The Trade Desk, Yahoo, and FreeWheel)," the analyst wrote.
Management raised their 2026 guidance for revenue from $5.5 billion to $5.54 billion. Management increased Ebitda from $635 million to $675 million, he further stated.
JPMorgan: Roku reported platform revenue growth of 28% year-on-year, versus market expectations of 23%-24%, driven by "a strong Winter Olympics and Super Bowl," Carpenter said. The company raised its 2026 platform revenue growth guidance from 18% to 21%, above investor expectations of 19%, he added.
Although Roku did not witness any impact on advertising spend from the Iran war or macro challenges, management "embedded conservatism" in their guidance for the back half of the year, the analyst stated. "We believe Roku's updated outlook includes minimal contribution from political (~$100M in 2024), World Cup, and the new home screen," which suggests more upward estimate revisions through the year, he further wrote.
Rosenblatt Securities: Roku's revenues grew 22% year-on-year $1.25 billion, beating expectations of a 17% rise, Crockett said. Growth in platform sales accelerated to 28% year-on-year, from 18% in the previous quarter, he added.
Ads Manager’s advertiser count doubled year-on-year in the quarter, the analyst stated. Subscriptions grew, with Apple (NASDAQ:AAPL) TV being launched on Premium Subscriptions in the US and Mexico, he further mentioned.
Needham: Roku reported strong results for the quarter, Martin said. The company's installed base of more than 100 million streaming households makes the company "the largest gatekeeper for TV monetization," he added.
Since the company's operating system uses 50% less memory, "rising memory costs are driving faster 3rd party TV adoption of Roku’s OS," which is further increasing its installed base, the analyst stated. Moreover, GenAI has made unique data and content more valuable and "Roku has unique 1st-party data, at scale, and it aggregates premium content, which is a unique value equation for large advertisers," he further wrote.
ROKU Price Action: Shares of Roku had risen by 3.05% to $120.11 at the time of publication on Friday.
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