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The Trade Desk to Release Q3 Earnings: Key Factors to Watch
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Key Takeaways
The Trade Desk is set to report Q3 earnings on Nov. 9, with revenues projected to fall 12% to $650.7 million.
Macro pressure in CPG and autos is weighing on Trade Desk's near-term visibility.
CTV, retail media growth, expanding advertiser partnerships and AI enhancements may support TTD's results.
The Trade Desk, Inc. (TTD - Free Report) is set to report third-quarter 2026 results on Nov. 9, after market close.
The Zacks Consensus Estimate for revenues is pinned at $650.7 million, down 12% from the prior-year reported number. The consensus estimate for earnings is pegged at 26 cents per share, down 42.2% year over year. The estimate has remained unchanged in the past seven days.
Image Source: Zacks Investment Research
For the September quarter, management expects revenues of at least $650 million and adjusted EBITDA of approximately $160 million.
Over the trailing four quarters, TTD’s earnings beat the Zacks Consensus Estimate once, matched it once and missed twice, resulting in an average negative surprise of 6.83%.
In the past year, shares of the company have lost 73.1% compared with the Zacks Internet Services industry’s decline of 3%.
Image Source: Zacks Investment Research
What Does Our Model Unveil for TTD?
Our proven model does not predict an earnings beat for Trade Desk 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. This is not the case here.
Trade Desk has an Earnings ESP of -4.89% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors at Play Ahead of TTD’s Q3 Results
The Trade Desk's third-quarter performance is likely to have been impacted by ongoing pressure on advertising budgets across key verticals such as Food & Drink and Home & Garden as consumer-packaged goods (“CPG”) brands face geopolitical tensions, inflation and consumer softness. While automotive is an “area of strength overall”, it is also impacted by tariffs, as noted in management's last earnings call. CPG and autos together account for about 25% of TTD’s business, increasing exposure to cautious enterprise budgets.
These pressures were visible in the second quarter of 2026, when revenues rose only 3% year over year to $715.1 million. Management's third-quarter guidance assumes no meaningful improvement in the macro backdrop.
Management highlighted that the economic uncertainty is putting pressure on lower-income consumers, prompting advertisers to prioritize cheaper media alternatives. The company also admitted that execution gaps contributed to the underperformance in the second quarter.
Rising expenses, coupled with investments, could compress margins if revenue growth slows. In the second quarter of 2026, operating expenses rose 6% year over year to $613.5 million, while platform operations expenses increased 22%. Operating expenses represented 85.8% of quarterly revenues. Adjusted EBITDA declined 11% year over year to $241.3 million, and the adjusted EBITDA margin contracted to 34% from 39%. Expenses increased amid continued investments in enhancing platform capabilities, particularly in more AI-powered tools.
In September, The Trade Desk announced an organizational realignment aimed at improving operational efficiency and aligning resources to the highest-priority opportunities. The restructuring involves reducing its workforce by approximately 15%, with substantial completion expected during the third quarter.
According to the SEC filing, the company expects cash restructuring and related charges of approximately $39 million to $51 million, partially offset by a $4 million to $5 million reversal of stock-based compensation. These charges are expected to be recognized in the third quarter and could weigh on GAAP profitability. Stiff competition in the ad landscape is an additional concern.
Continued momentum in key business areas, such as Connected TV (“CTV”), is expected to have cushioned TTD’s top-line performance in the to-be-reported quarter. CTV is benefiting from the ongoing shift from linear TV. In the second quarter, video — which includes CTV — represented a low-50s percentage share of the total business. The shift from linear TV to CTV is still in early stages, providing a long runway for growth. Audio contributed approximately 7% and remained the company's fastest-growing channel for four consecutive quarters.
International markets are also likely to have provided support. CTV revenues in both EMEA and APAC increased more than 50% year over year in the second quarter, showing that adoption is broadening beyond the United States.
Beyond CTV, retail media has emerged as a significant opportunity for Trade Desk. On the last earnings call, Trade Desk highlighted that participating retailers represented more than 80% of U.S. retail sales.
Trade Desk’s deeper relationships with major advertisers represent another positive. The company had 217 clients with Joint Business Plans (JBPs) in the second quarter, up 38% year over year. Management noted that revenues under those plans grew at six times the company’s overall revenue growth rate.
Management described JBPs as “much more than commercial agreements”, emphasizing that they provide a structured framework through which brands, agencies and Trade Desk can jointly plan, innovate and measure success. Management believes this longer-term alignment is helping JBP customers grow faster than the rest of the business.
Trade Desk is leaning into AI and measurement that tie media to outcomes. In August, TTD unveiled Kokai Zuma, the latest release of its Kokai platform. Zuma brings new agentic AI capabilities and a simpler measurement framework to improve navigation on the Kokai platform for buyers and focus more closely on business outcomes. TTD said that the latest enhancements to Zuma’s modeling and forecasting capabilities have generated an average 32% improvement in cost-per-acquisition performance in initial results.
In September, The Trade Desk expanded its healthcare advertising capabilities through enhanced integrations with Veeva Crossix and IQVIA Digital. The move gives pharmaceutical advertisers access to more granular campaign measurement and enables them to use healthcare-specific insights directly in media optimization and decision-making.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Telos is scheduled to report quarterly earnings on Nov. 9, 2026. The Zacks Consensus Estimate for TLS’ to-be-reported quarter’s earnings and revenues is pegged at 4 cents per share and $50 million, respectively. Shares of TLS have lost 23.2% in the past year.
Nebius Group N.V. (NBIS - Free Report) has an Earnings ESP of +50.82% and a Zacks Rank #2 at present. NBIS is scheduled to report quarterly figures on Nov. 12, 2026. The Zacks Consensus Estimate for NBIS’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 61 cents per share and $916.8 million, respectively. Shares of NBIS have rose 29.6% in the past year.
Angel Studios Inc (ANGX - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #2 at present. ANGX is scheduled to report quarterly figures on Nov. 10, 2026. The Zacks Consensus Estimate for ANGX’s to-be-reported quarter’s earnings and revenues is pegged at a loss of 7 cents per share and nearly $146.1 million, respectively. Shares of ANGX are down 46.9% in the past year.
View the Zacks #1 Rank List
Image: Bigstock
The Trade Desk to Release Q3 Earnings: Key Factors to Watch
Key Takeaways
The Trade Desk, Inc. (TTD - Free Report) is set to report third-quarter 2026 results on Nov. 9, after market close.
The Zacks Consensus Estimate for revenues is pinned at $650.7 million, down 12% from the prior-year reported number. The consensus estimate for earnings is pegged at 26 cents per share, down 42.2% year over year. The estimate has remained unchanged in the past seven days.
Image Source: Zacks Investment Research
For the September quarter, management expects revenues of at least $650 million and adjusted EBITDA of approximately $160 million.
Over the trailing four quarters, TTD’s earnings beat the Zacks Consensus Estimate once, matched it once and missed twice, resulting in an average negative surprise of 6.83%.
In the past year, shares of the company have lost 73.1% compared with the Zacks Internet Services industry’s decline of 3%.
Image Source: Zacks Investment Research
What Does Our Model Unveil for TTD?
Our proven model does not predict an earnings beat for Trade Desk 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. This is not the case here.
Trade Desk has an Earnings ESP of -4.89% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors at Play Ahead of TTD’s Q3 Results
The Trade Desk's third-quarter performance is likely to have been impacted by ongoing pressure on advertising budgets across key verticals such as Food & Drink and Home & Garden as consumer-packaged goods (“CPG”) brands face geopolitical tensions, inflation and consumer softness. While automotive is an “area of strength overall”, it is also impacted by tariffs, as noted in management's last earnings call. CPG and autos together account for about 25% of TTD’s business, increasing exposure to cautious enterprise budgets.
These pressures were visible in the second quarter of 2026, when revenues rose only 3% year over year to $715.1 million. Management's third-quarter guidance assumes no meaningful improvement in the macro backdrop.
Management highlighted that the economic uncertainty is putting pressure on lower-income consumers, prompting advertisers to prioritize cheaper media alternatives. The company also admitted that execution gaps contributed to the underperformance in the second quarter.
Rising expenses, coupled with investments, could compress margins if revenue growth slows. In the second quarter of 2026, operating expenses rose 6% year over year to $613.5 million, while platform operations expenses increased 22%. Operating expenses represented 85.8% of quarterly revenues. Adjusted EBITDA declined 11% year over year to $241.3 million, and the adjusted EBITDA margin contracted to 34% from 39%. Expenses increased amid continued investments in enhancing platform capabilities, particularly in more AI-powered tools.
In September, The Trade Desk announced an organizational realignment aimed at improving operational efficiency and aligning resources to the highest-priority opportunities. The restructuring involves reducing its workforce by approximately 15%, with substantial completion expected during the third quarter.
The Trade Desk Price and EPS Surprise
The Trade Desk price-eps-surprise | The Trade Desk Quote
According to the SEC filing, the company expects cash restructuring and related charges of approximately $39 million to $51 million, partially offset by a $4 million to $5 million reversal of stock-based compensation. These charges are expected to be recognized in the third quarter and could weigh on GAAP profitability. Stiff competition in the ad landscape is an additional concern.
Continued momentum in key business areas, such as Connected TV (“CTV”), is expected to have cushioned TTD’s top-line performance in the to-be-reported quarter. CTV is benefiting from the ongoing shift from linear TV. In the second quarter, video — which includes CTV — represented a low-50s percentage share of the total business. The shift from linear TV to CTV is still in early stages, providing a long runway for growth. Audio contributed approximately 7% and remained the company's fastest-growing channel for four consecutive quarters.
International markets are also likely to have provided support. CTV revenues in both EMEA and APAC increased more than 50% year over year in the second quarter, showing that adoption is broadening beyond the United States.
Beyond CTV, retail media has emerged as a significant opportunity for Trade Desk. On the last earnings call, Trade Desk highlighted that participating retailers represented more than 80% of U.S. retail sales.
Trade Desk’s deeper relationships with major advertisers represent another positive. The company had 217 clients with Joint Business Plans (JBPs) in the second quarter, up 38% year over year. Management noted that revenues under those plans grew at six times the company’s overall revenue growth rate.
The Trade Desk Revenue (Quarterly)
The Trade Desk revenue-quarterly | The Trade Desk Quote
Management described JBPs as “much more than commercial agreements”, emphasizing that they provide a structured framework through which brands, agencies and Trade Desk can jointly plan, innovate and measure success. Management believes this longer-term alignment is helping JBP customers grow faster than the rest of the business.
Trade Desk is leaning into AI and measurement that tie media to outcomes. In August, TTD unveiled Kokai Zuma, the latest release of its Kokai platform. Zuma brings new agentic AI capabilities and a simpler measurement framework to improve navigation on the Kokai platform for buyers and focus more closely on business outcomes. TTD said that the latest enhancements to Zuma’s modeling and forecasting capabilities have generated an average 32% improvement in cost-per-acquisition performance in initial results.
In September, The Trade Desk expanded its healthcare advertising capabilities through enhanced integrations with Veeva Crossix and IQVIA Digital. The move gives pharmaceutical advertisers access to more granular campaign measurement and enables them to use healthcare-specific insights directly in media optimization and decision-making.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Telos Corporation (TLS - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Telos is scheduled to report quarterly earnings on Nov. 9, 2026. The Zacks Consensus Estimate for TLS’ to-be-reported quarter’s earnings and revenues is pegged at 4 cents per share and $50 million, respectively. Shares of TLS have lost 23.2% in the past year.
Nebius Group N.V. (NBIS - Free Report) has an Earnings ESP of +50.82% and a Zacks Rank #2 at present. NBIS is scheduled to report quarterly figures on Nov. 12, 2026. The Zacks Consensus Estimate for NBIS’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 61 cents per share and $916.8 million, respectively. Shares of NBIS have rose 29.6% in the past year.
Angel Studios Inc (ANGX - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #2 at present. ANGX is scheduled to report quarterly figures on Nov. 10, 2026. The Zacks Consensus Estimate for ANGX’s to-be-reported quarter’s earnings and revenues is pegged at a loss of 7 cents per share and nearly $146.1 million, respectively. Shares of ANGX are down 46.9% in the past year.