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The Zacks Consensus Estimate for SE’s second-quarter earnings is pegged at $1.00 per share, unchanged over the past 30 days but revised down by 3 cents over the past 60 days. The estimate indicates year-over-year growth of 17.6% from the 85 cents per share reported in the year-ago quarter.
The Zacks Consensus Estimate for revenues is pegged at $7.34 billion, suggesting year-over-year growth of 36.82%.
Sea Limited’s earnings missed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average negative surprise of 15.51%.
Let us see how things have shaped up for the upcoming announcement.
Factors Likely to Shape SE’s Q2 Results
Sea Limited’s aggressive investments in logistics, fulfillment, ShopeeVIP, AI capabilities and user acquisition are expected to have weighed on profitability in the second quarter of 2026. Management has reiterated that 2026 is a year for prioritizing growth-oriented investments aimed at further strengthening competitive advantage; however, they have also acknowledged that these initiatives are still in the early stages of improving unit economics. As a result, higher operating expenses are likely to have pressured Shopee’s margins during the quarter under review, even as revenue growth remained healthy.
Sea Limited’s rapidly expanding digital lending business is expected to have increased financial risk in the second quarter of 2026. While asset quality remained stable, the company continued to aggressively grow its loan portfolio across existing customers, new user segments and off-Shopee lending. This expansion was accompanied by a sharp rise in provision for credit losses, indicating higher costs associated with scaling the credit business. These elevated provisioning expenses likely continued to pressure earnings in the quarter under review despite strong lending growth.
However, Sea Limited’s growing AI adoption and strong execution in Brazil are anticipated to have supported second-quarter 2026 performance. AI-powered search, recommendations and content tools improved purchase conversion rates by 14%, while AI chatbots handled around 80% of customer queries, reducing customer service costs by roughly 30%. Meanwhile, Brazil remained Shopee’s fastest-growing profitable market, supported by improved delivery times, new fulfillment centers and rapid ShopeeMall expansion. Together, these initiatives are likely to have enhanced operating efficiency, customer engagement and market share in the upcoming announcement.
What Our Model Says About Sea Limited Stock
Our proven model does not conclusively predict an earnings beat for SE this time around. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Sea Limited currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Analog Devices (ADI - Free Report) currently has an Earnings ESP of +2.37% and carries a Zacks Rank #2. ADI shares have gained 39.3% in the year-to-date period. ADI is set to report its third-quarter fiscal 2026 results on Aug. 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials (AMAT - Free Report) presently has an Earnings ESP of +1.52% and a Zacks Rank #2. AMAT shares have surged 107.9% in the year-to-date period. AMAT is set to report its third-quarter fiscal 2026 results on Aug. 13.
Kingsoft Cloud (KC - Free Report) has an Earnings ESP of +12.5% and a Zacks Rank #2 at present. KC shares have returned 21% in the year-to-date period. KC is slated to report its second-quarter 2026 results on Aug. 19.
View the Zacks #1 Rank List
Image: Bigstock
Sea Limited's Q2 Earnings Ahead: What's in Store for the Stock?
Key Takeaways
Sea Limited (SE - Free Report) is scheduled to report second-quarter 2026 results on Aug. 11.
The Zacks Consensus Estimate for SE’s second-quarter earnings is pegged at $1.00 per share, unchanged over the past 30 days but revised down by 3 cents over the past 60 days. The estimate indicates year-over-year growth of 17.6% from the 85 cents per share reported in the year-ago quarter.
The Zacks Consensus Estimate for revenues is pegged at $7.34 billion, suggesting year-over-year growth of 36.82%.
Sea Limited’s earnings missed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average negative surprise of 15.51%.
Sea Limited Sponsored ADR Price and EPS Surprise
Sea Limited Sponsored ADR price-eps-surprise | Sea Limited Sponsored ADR Quote
Let us see how things have shaped up for the upcoming announcement.
Factors Likely to Shape SE’s Q2 Results
Sea Limited’s aggressive investments in logistics, fulfillment, ShopeeVIP, AI capabilities and user acquisition are expected to have weighed on profitability in the second quarter of 2026. Management has reiterated that 2026 is a year for prioritizing growth-oriented investments aimed at further strengthening competitive advantage; however, they have also acknowledged that these initiatives are still in the early stages of improving unit economics. As a result, higher operating expenses are likely to have pressured Shopee’s margins during the quarter under review, even as revenue growth remained healthy.
Sea Limited’s rapidly expanding digital lending business is expected to have increased financial risk in the second quarter of 2026. While asset quality remained stable, the company continued to aggressively grow its loan portfolio across existing customers, new user segments and off-Shopee lending. This expansion was accompanied by a sharp rise in provision for credit losses, indicating higher costs associated with scaling the credit business. These elevated provisioning expenses likely continued to pressure earnings in the quarter under review despite strong lending growth.
However, Sea Limited’s growing AI adoption and strong execution in Brazil are anticipated to have supported second-quarter 2026 performance. AI-powered search, recommendations and content tools improved purchase conversion rates by 14%, while AI chatbots handled around 80% of customer queries, reducing customer service costs by roughly 30%. Meanwhile, Brazil remained Shopee’s fastest-growing profitable market, supported by improved delivery times, new fulfillment centers and rapid ShopeeMall expansion. Together, these initiatives are likely to have enhanced operating efficiency, customer engagement and market share in the upcoming announcement.
What Our Model Says About Sea Limited Stock
Our proven model does not conclusively predict an earnings beat for SE this time around. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Sea Limited currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Analog Devices (ADI - Free Report) currently has an Earnings ESP of +2.37% and carries a Zacks Rank #2. ADI shares have gained 39.3% in the year-to-date period. ADI is set to report its third-quarter fiscal 2026 results on Aug. 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials (AMAT - Free Report) presently has an Earnings ESP of +1.52% and a Zacks Rank #2. AMAT shares have surged 107.9% in the year-to-date period. AMAT is set to report its third-quarter fiscal 2026 results on Aug. 13.
Kingsoft Cloud (KC - Free Report) has an Earnings ESP of +12.5% and a Zacks Rank #2 at present. KC shares have returned 21% in the year-to-date period. KC is slated to report its second-quarter 2026 results on Aug. 19.