We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Trade Desk Q1 Earnings Miss Estimates, Revenues Up Y/Y, Stock Down
Read MoreHide Full Article
Key Takeaways
TTD posted Q1 revenue growth of 12% and topped its revenue guidance despite missing EPS estimates.
Trade Desk launched Koa Agents and OpenTTD to expand AI-driven media optimization capabilities.
TTD expects Q2 revenue of at least $750M and full-year adjusted EBITDA margin of at least 40%.
The Trade Desk, Inc. (TTD - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 28 cents, which missed the Zacks Consensus Estimate by 12.5%. The bottom line compared unfavorably with 33 cents posted in the prior-year quarter.
Revenues increased around 12% year over year to $688.9 billion. It beat the consensus mark by 1.4%. The figure came above the company’s revenue expectation of at least $678 million for the first quarter.
In the quarter, the company maintained strong momentum, with customer retention remaining above 95% for more than a decade. The company expanded its innovation portfolio through the launch of Koa Agents, an AI-powered media optimization solution, and OpenTTD, a unified login and analytics platform.
Strategic partnerships with LinkedIn, Pacvue, Skai, Dollar General and Paramount further strengthened its position across connected TV, retail media and programmatic advertising. The company also continued expanding the adoption of Unified ID 2.0 and OpenAds among advertisers and publishers.
Trade Desk delivered another strong quarter. Management highlighted that the company’s strategic upgrades and operational improvements played a key role in driving the outperformance. Despite ongoing macroeconomic challenges, management remains confident in Trade Desk’s ability to lead innovation within the programmatic advertising ecosystem. The company continues to focus on helping marketers maximize value through objective, transparent and data-driven media buying across the open internet.
After the announcement of the results, shares lost around 13% in the pre-market trading session today. In the past year, the stock has plunged 66.9% against the Zacks Internet – Services industry’s growth of 140.9%.
Image Source: Zacks Investment Research
Segment Details
Video, including connected TV (CTV), accounted for a low-50% share of the company’s business in the first quarter and continued to expand as part of the overall channel mix. Mobile contributed a high-20% share during the quarter, while display represented a low double-digit percentage. Audio accounted for nearly 6% of the business and delivered the strongest year-over-year growth among all channels.
TTD’s Operating Details
Adjusted EDITDA was $206 million compared with $208 million in the year-ago quarter, while adjusted EDITDA margin came in at 30%, down from 34%.
Balance Sheet & Cash Flow
As of March 31, 2026, cash & cash equivalents were $878.4 million compared with $658.2 million as of March 31, 2025.
In the quarter, net cash generated from operating activities totaled $391.8 million, while free cash flow amounted to $276 million.
The company repurchased approximately $164 million during the first quarter of 2026. As of March 31, 2026, $327 million remained available under its authorized share repurchase program.
Outlook
For the second quarter, Trade Desk expects revenue of at least $750 million and adjusted EBITDA of approximately $260 million.
For the remainder of 2026, the company anticipates headcount growth to remain below revenue growth, reflecting its continued focus on productivity improvements and operating leverage. Management also plans to prioritize investments that directly support revenue expansion and AI-driven innovation. As a result, the company continues to expect the full-year 2026 adjusted EBITDA margin to be at least 40%, broadly in line with 2025 levels.
Trade Desk remains confident in its long-term growth outlook as the leading independent platform in the rapidly expanding digital advertising industry. The company believes strong execution across key growth areas, including CTV, retail media, agentic AI, supply path optimization and international expansion, positions it well to capitalize on significant opportunities ahead.
Flex Ltd. (FLEX - Free Report) reported fourth-quarter fiscal 2026 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line compared favorably with 73 cents posted in the prior-year quarter.
Revenues increased 17% year over year to $7.5 billion. It beat the consensus mark by 8.1%. The growth was primarily driven by strong momentum across all three segments, with Cloud and Power Infrastructure emerging as the standout performer.
Fortive Corporation (FTV - Free Report) reported first-quarter 2026 adjusted EPS of 70 cents from continuing operations, which surpassed the Zacks Consensus Estimate of 64 cents. The bottom line increased 25.4% year over year.
Revenues increased 7.7% year over year to $1069.4 million. The top line beat the Zacks Consensus Estimate by 3.8%. Core revenues jumped 5.3%.
Sensata Technologies Holding plc (ST - Free Report) reported first-quarter 2026 adjusted EPS of 86 cents, up from 78 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.4%.
Revenues for the quarter reached $934.8 million, up 2.6% from a year ago. The figure came near to the upper end of management’s expectations ($917-$937 million) and beat the consensus estimate by 0.7%. Strength Aerospace, Defense and Commercial Equipment segments drove the top-line performance.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Zacks
Trade Desk Q1 Earnings Miss Estimates, Revenues Up Y/Y, Stock Down
Key Takeaways
The Trade Desk, Inc. (TTD - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 28 cents, which missed the Zacks Consensus Estimate by 12.5%. The bottom line compared unfavorably with 33 cents posted in the prior-year quarter.
Revenues increased around 12% year over year to $688.9 billion. It beat the consensus mark by 1.4%. The figure came above the company’s revenue expectation of at least $678 million for the first quarter.
In the quarter, the company maintained strong momentum, with customer retention remaining above 95% for more than a decade. The company expanded its innovation portfolio through the launch of Koa Agents, an AI-powered media optimization solution, and OpenTTD, a unified login and analytics platform.
Strategic partnerships with LinkedIn, Pacvue, Skai, Dollar General and Paramount further strengthened its position across connected TV, retail media and programmatic advertising. The company also continued expanding the adoption of Unified ID 2.0 and OpenAds among advertisers and publishers.
Trade Desk delivered another strong quarter. Management highlighted that the company’s strategic upgrades and operational improvements played a key role in driving the outperformance. Despite ongoing macroeconomic challenges, management remains confident in Trade Desk’s ability to lead innovation within the programmatic advertising ecosystem. The company continues to focus on helping marketers maximize value through objective, transparent and data-driven media buying across the open internet.
After the announcement of the results, shares lost around 13% in the pre-market trading session today. In the past year, the stock has plunged 66.9% against the Zacks Internet – Services industry’s growth of 140.9%.
Image Source: Zacks Investment Research
Segment Details
Video, including connected TV (CTV), accounted for a low-50% share of the company’s business in the first quarter and continued to expand as part of the overall channel mix. Mobile contributed a high-20% share during the quarter, while display represented a low double-digit percentage. Audio accounted for nearly 6% of the business and delivered the strongest year-over-year growth among all channels.
TTD’s Operating Details
Adjusted EDITDA was $206 million compared with $208 million in the year-ago quarter, while adjusted EDITDA margin came in at 30%, down from 34%.
Balance Sheet & Cash Flow
As of March 31, 2026, cash & cash equivalents were $878.4 million compared with $658.2 million as of March 31, 2025.
In the quarter, net cash generated from operating activities totaled $391.8 million, while free cash flow amounted to $276 million.
The Trade Desk Price, Consensus and EPS Surprise
The Trade Desk price-consensus-eps-surprise-chart | The Trade Desk Quote
The company repurchased approximately $164 million during the first quarter of 2026. As of March 31, 2026, $327 million remained available under its authorized share repurchase program.
Outlook
For the second quarter, Trade Desk expects revenue of at least $750 million and adjusted EBITDA of approximately $260 million.
For the remainder of 2026, the company anticipates headcount growth to remain below revenue growth, reflecting its continued focus on productivity improvements and operating leverage. Management also plans to prioritize investments that directly support revenue expansion and AI-driven innovation. As a result, the company continues to expect the full-year 2026 adjusted EBITDA margin to be at least 40%, broadly in line with 2025 levels.
Trade Desk remains confident in its long-term growth outlook as the leading independent platform in the rapidly expanding digital advertising industry. The company believes strong execution across key growth areas, including CTV, retail media, agentic AI, supply path optimization and international expansion, positions it well to capitalize on significant opportunities ahead.
TTD’s Zacks Rank
Trade Desk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Peers in the Same Space
Flex Ltd. (FLEX - Free Report) reported fourth-quarter fiscal 2026 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line compared favorably with 73 cents posted in the prior-year quarter.
Revenues increased 17% year over year to $7.5 billion. It beat the consensus mark by 8.1%. The growth was primarily driven by strong momentum across all three segments, with Cloud and Power Infrastructure emerging as the standout performer.
Fortive Corporation (FTV - Free Report) reported first-quarter 2026 adjusted EPS of 70 cents from continuing operations, which surpassed the Zacks Consensus Estimate of 64 cents. The bottom line increased 25.4% year over year.
Revenues increased 7.7% year over year to $1069.4 million. The top line beat the Zacks Consensus Estimate by 3.8%. Core revenues jumped 5.3%.
Sensata Technologies Holding plc (ST - Free Report) reported first-quarter 2026 adjusted EPS of 86 cents, up from 78 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.4%.
Revenues for the quarter reached $934.8 million, up 2.6% from a year ago. The figure came near to the upper end of management’s expectations ($917-$937 million) and beat the consensus estimate by 0.7%. Strength Aerospace, Defense and Commercial Equipment segments drove the top-line performance.