The Trade Desk Q1 EPS Misses Estimates, Price Target Cut to $25, Shares Slide 12%
TTD•The Trade Desk reported Q1 2026 revenue of $689 million, up 11.9%, and adjusted EPS of $0.28, missing the $0.32 estimate. After higher taxes, platform spending and Q2 guidance about $22 million short, Needham cut its price target to $25 and shares plunged roughly 12%.
1. Q1 Financial Results
The Trade Desk delivered Q1 2026 revenue of $689 million, an 11.9% year-over-year increase, but posted adjusted earnings of $0.28 per share versus analyst estimates of $0.32. GAAP net income fell to $40 million from $51 million in the prior year as tax expenses rose.
2. Cost Pressures and Guidance
Higher platform investment costs and an increased tax burden weighed on profitability. Management forecast Q2 revenue of at least $750 million, roughly $22 million below consensus, signaling slower mid-year growth expectations.
3. Analyst Reaction and Stock Impact
Needham cut its price target from $32 to $25 following the mixed quarter and weaker guidance. Shares declined approximately 12% on the price-target reduction and underlying earnings miss.
