Strong Q1: Sea Limited's Revenue Up 46.6%, Target Lifted to $157
Sea Limited's GAAP revenue jumped 46.6% year-over-year to $7.1 billion in Q1 2026, with gross profit up 40.7% to $3.1 billion, net income rising 6.7% to $438.2 million and adjusted EBITDA growing 9.3% to $1.0 billion. Jefferies raised its price target to $157 from $150, signaling over 60% upside potential.
1. Robust Q1 Financial Performance
Sea Limited reported GAAP revenue of $7.1 billion in Q1 2026, a 46.6% increase year-over-year, while gross profit rose 40.7% to $3.1 billion. Net income climbed 6.7% to $438.2 million and adjusted EBITDA reached $1.0 billion, up 9.3%.
2. Analyst Raises Price Target
Jefferies reiterated its Buy rating and boosted the price target to $157 from $150, implying more than 60% potential upside and reflecting confidence in Sea Limited’s growth trajectory.
3. Emerging Margin and Cost Pressures
Shopee’s 2026 guidance suggests potential margin compression, and SeaMoney faces higher loan-loss provisions tied to an 80.4% surge in its loan book, which could pressure near-term profitability.