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For the first quarter of 2026, Roku expects total net revenues of approximately $1.2 billion, indicating an increase of 18% year over year. The company anticipates Platform revenues to grow 21% year over year, and Devices revenues are expected to decline mid-single digits from the prior year. It expects first-quarter total gross profit of approximately $530 million and adjusted EBITDA of approximately $130 million.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.2 billion, suggesting year-over-year growth of 17.88%. The consensus mark for earnings is pinned at 34 cents per share. The estimate indicates year-over-year growth of 278.95%.
In the last reported quarter, the company delivered an earnings surprise of 29.63%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 97.81%.
Our proven model does not conclusively predict an earnings beat for Roku this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Roku is expected to have entered the first quarter with solid platform-driven momentum, reflecting improving monetization, a clear profitability inflection and sustained engagement gains following its 2025 exit. The company exited the previous quarter with platform revenues growing 18% to $1.224 billion, reflecting continued strength in advertising and distribution activities.
Several factors likely supported the first-quarter performance. Platform revenues are expected to have benefited from an easier year-ago comparison and the full-quarter contribution from Frndly TV. On the content side, the Milan Cortina 2026 Winter Olympics, which aired through NBC's coverage on Roku's Sports Experience in February, is expected to have lifted streaming hours and sports-driven subscription activity, extending the nearly 75% year-over-year increase in sports-led sign-ups seen in the prior quarter. The Roku Channel added over 50 new free ad-supported channels across January and February 2026, expanding its FAST content library while increasing available ad inventory and monetization surfaces. In March, Roku extended its Howdy service to Amazon's (AMZN - Free Report) Prime Video platform, extending its owned-and-operated subscription distribution beyond its native ecosystem.
Deepening integrations with The Trade Desk (TTD - Free Report) and Amazon through their respective DSPs likely supported demand diversification and improved programmatic fill rates, with The Trade Desk’s expanding connected TV budgets representing a meaningful tailwind.
However, several factors likely weighed on the results. Devices revenues are expected to have declined, while the retail environment remains competitive with Amazon Fire TV and Alphabet's (GOOGL - Free Report) Google continuing to compete aggressively for connected TV OS share. Alphabet continues to hold structural distribution advantages through its Android TV licensing network. Political advertising, which typically skews toward the second half of election cycles, is expected to have been largely absent in the quarter.
Top-Line Growth Estimates for Q1
The Zacks Consensus Estimate for first-quarter 2026 Devices revenues is pegged at $132.41 million, and for Platform revenues, it is pinned at $1.07 billion.
Compared to the broader industry, ROKU's valuation remains elevated despite the prospect of a modest quarter. The stock currently trades at a forward 12-month Price-to-Earnings ratio of 46.19X, versus the industry average of 24.32X. This near-double premium is difficult to justify given that near-term profitability remains nascent, device margins continue to operate in negative territory, and competitive pressures from Amazon and Alphabet across connected TV operating system distribution continue to weigh on long-term monetization assumptions, even as demand partnerships with The Trade Desk provide incremental support.
ROKU’s P/E Valuation
Image Source: Zacks Investment Research
Investment Considerations
Roku's platform fundamentals remain intact, with sustained engagement growth, expanding DSP partnerships and a broadening monetization surface through Ads Manager and Premium Subscriptions. However, device margins remain structurally negative, near-term profitability is still developing and competitive pressure from Amazon and Alphabet across connected TV OS distribution adds uncertainty to longer-term assumptions.
Conclusion
Roku's platform trajectory remains constructive, underpinned by improving monetization, content-driven engagement and a deepening programmatic advertising stack. That said, with the stock trading at a significant premium to the industry average, the near-term risk-reward does not appear compelling enough to warrant fresh exposure at current levels. Existing shareholders are better served holding their positions, while new investors may want to wait for a more attractive entry point before initiating a position in ROKU.
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Should You Buy, Sell or Hold Roku Stock Ahead of Q1 Earnings?
Key Takeaways
Roku (ROKU - Free Report) is slated to report first-quarter 2026 results on April 30.
For the first quarter of 2026, Roku expects total net revenues of approximately $1.2 billion, indicating an increase of 18% year over year. The company anticipates Platform revenues to grow 21% year over year, and Devices revenues are expected to decline mid-single digits from the prior year. It expects first-quarter total gross profit of approximately $530 million and adjusted EBITDA of approximately $130 million.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.2 billion, suggesting year-over-year growth of 17.88%. The consensus mark for earnings is pinned at 34 cents per share. The estimate indicates year-over-year growth of 278.95%.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
ROKU’s Earnings Surprise History
In the last reported quarter, the company delivered an earnings surprise of 29.63%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 97.81%.
Roku, Inc. Price and EPS Surprise
Roku, Inc. price-eps-surprise | Roku, Inc. Quote
Earnings Whispers for ROKU
Our proven model does not conclusively predict an earnings beat for Roku this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
ROKU has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Upcoming Results of Roku
Roku is expected to have entered the first quarter with solid platform-driven momentum, reflecting improving monetization, a clear profitability inflection and sustained engagement gains following its 2025 exit. The company exited the previous quarter with platform revenues growing 18% to $1.224 billion, reflecting continued strength in advertising and distribution activities.
Several factors likely supported the first-quarter performance. Platform revenues are expected to have benefited from an easier year-ago comparison and the full-quarter contribution from Frndly TV. On the content side, the Milan Cortina 2026 Winter Olympics, which aired through NBC's coverage on Roku's Sports Experience in February, is expected to have lifted streaming hours and sports-driven subscription activity, extending the nearly 75% year-over-year increase in sports-led sign-ups seen in the prior quarter. The Roku Channel added over 50 new free ad-supported channels across January and February 2026, expanding its FAST content library while increasing available ad inventory and monetization surfaces. In March, Roku extended its Howdy service to Amazon's (AMZN - Free Report) Prime Video platform, extending its owned-and-operated subscription distribution beyond its native ecosystem.
Deepening integrations with The Trade Desk (TTD - Free Report) and Amazon through their respective DSPs likely supported demand diversification and improved programmatic fill rates, with The Trade Desk’s expanding connected TV budgets representing a meaningful tailwind.
However, several factors likely weighed on the results. Devices revenues are expected to have declined, while the retail environment remains competitive with Amazon Fire TV and Alphabet's (GOOGL - Free Report) Google continuing to compete aggressively for connected TV OS share. Alphabet continues to hold structural distribution advantages through its Android TV licensing network. Political advertising, which typically skews toward the second half of election cycles, is expected to have been largely absent in the quarter.
Top-Line Growth Estimates for Q1
The Zacks Consensus Estimate for first-quarter 2026 Devices revenues is pegged at $132.41 million, and for Platform revenues, it is pinned at $1.07 billion.
ROKU Price Performance & Stock Valuation
Shares of Roku have increased 5.4% in the year-to-date period, while the Zacks Consumer Discretionary sector and the Zacks Broadcast Radio and Television declined 6.4% and 3.1%, respectively.
ROKU’s YTD Price Performance
Image Source: Zacks Investment Research
Compared to the broader industry, ROKU's valuation remains elevated despite the prospect of a modest quarter. The stock currently trades at a forward 12-month Price-to-Earnings ratio of 46.19X, versus the industry average of 24.32X. This near-double premium is difficult to justify given that near-term profitability remains nascent, device margins continue to operate in negative territory, and competitive pressures from Amazon and Alphabet across connected TV operating system distribution continue to weigh on long-term monetization assumptions, even as demand partnerships with The Trade Desk provide incremental support.
ROKU’s P/E Valuation
Image Source: Zacks Investment Research
Investment Considerations
Roku's platform fundamentals remain intact, with sustained engagement growth, expanding DSP partnerships and a broadening monetization surface through Ads Manager and Premium Subscriptions. However, device margins remain structurally negative, near-term profitability is still developing and competitive pressure from Amazon and Alphabet across connected TV OS distribution adds uncertainty to longer-term assumptions.
Conclusion
Roku's platform trajectory remains constructive, underpinned by improving monetization, content-driven engagement and a deepening programmatic advertising stack. That said, with the stock trading at a significant premium to the industry average, the near-term risk-reward does not appear compelling enough to warrant fresh exposure at current levels. Existing shareholders are better served holding their positions, while new investors may want to wait for a more attractive entry point before initiating a position in ROKU.