Jefferies Forecasts $1.205B Roku Q1 Revenue, 13–14% Microsoft M365 Growth
Jefferies reiterated its Outperform rating and $140 price target on Roku ahead of its Q1 report, forecasting $1.205 billion in revenue (18% y/y) and $136 million in adjusted EBITDA. It also previewed Microsoft’s fiscal Q3, projecting 13–14% M365 commercial growth, 37–38% Azure constant-currency growth and $141 billion fiscal 2026 capex guidance.
1. Roku Q1 Earnings Forecast
Jefferies reaffirmed its Outperform rating and $140 target on Roku, modelling $1.205 billion in Q1 revenue above guidance and consensus. Platform revenue is seen rising 22% year-over-year to $1.075 billion, with advertising up 19% to $577 million and subscriptions up 25% to $499 million, while device sales dip 7% to $130 million, driving an adjusted EBITDA outlook of $136 million.
2. Microsoft Fiscal Q3 Preview
Jefferies projects Microsoft’s M365 Commercial growth at 13–14% constant-currency for fiscal Q3, with Copilot adoption under scrutiny. Azure is forecast to grow 37–38% c-c, reflecting normalized beats versus tougher GPU and CPU capacity constraints, while modelling $141 billion in fiscal 2026 capex and modest operating margin expansion despite AI investment pressures.