The Trade Desk (TTD) announced its first-quarter 2026 earnings on May 8, reporting an adjusted earnings per share (EPS) of 28 cents, which fell short of the Zacks Consensus Estimate by 12.5% and down from 33 cents in the prior-year quarter. However, revenues rose 12% to $688.9 million, exceeding management guidance of at least $678 million and beating the consensus estimate by 1.4%.
Following the earnings announcement, TTD’s stock price dropped 8.4%, closing at $21.52. Year-to-date, the stock has decreased by 43.3%, with losses of 72.5% over the past year. The company is facing stiff competition in the digital advertising sector and slower revenue growth compared to prior quarters. Looking ahead, second-quarter revenues are projected to reach $750 million, indicating only 8% growth year-over-year.
Despite strong cash flow figures—$392 million in operating cash flow and $276 million in free cash flow—concerns loom due to ongoing macroeconomic challenges and increased competition. TTD’s international business, which comprises about 18% of total revenues, and growth in the connected television (CTV) segment are seen as long-term growth drivers amidst these headwinds.
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