Source: davit kirakosyan
Roku Inc. Shares Soar Following Stellar Q4 Earnings
Shares of Roku Inc. (NASDAQ: ROKU) experienced a surge of over 10% intra-day on Friday, a response to the streaming platform operator’s impressive fourth-quarter earnings that surpassed analyst expectations. The optimistic forecast for 2026, which also exceeded market predictions, further fueled the stock’s upward momentum.
Q4 Earnings Report: A Snapshot
Roku reported an adjusted EPS (Earnings Per Share) of $0.53 in the fourth quarter, nearly double the consensus estimate of $0.27, representing a significant financial success for the company. This impressive financial performance can be attributed to its strategic planning and innovative business models.
The company’s total revenue reached $1.38 billion, in line with market expectations, and represented a 16% growth compared to the same period last year. This is an impressive feat during an era characterized by economic uncertainties due to the ongoing global pandemic.
Breakdown of Roku’s Revenue Streams
There are two main components of Roku’s revenue: platform revenue and devices revenue. Platform revenue, which comprises advertising and content distribution, rose by 18% to $1.22 billion. This increase demonstrates the evolving consumer habits, with a growing preference for streaming platforms over traditional television.
Meanwhile, devices revenue experienced a modest 3% growth to $171 million. While this growth rate is relatively low compared to the platform revenue, it still demonstrates the steady demand for Roku’s product offerings in a highly competitive market.
Roku’s Q1 2026 Revenue Projections
For the first quarter of 2026, Roku anticipates revenue of $1.2 billion, exceeding the consensus estimate of $1.17 billion. This projection reflects the company’s strong confidence in its growth trajectory and its potential to sustain its momentum in the coming years.
Moreover, the company expects full-year 2026 revenue to reach $5.5 billion, surpassing analyst projections of $5.34 billion. Such robust projections signal Roku’s strategic positioning and the potential for its continued expansion in the streaming market.
Streaming Hours and The Roku Channel’s Success
Roku reported that streaming hours on its platform increased 15% year over year to 145.6 billion for the full year 2025. This statistic underscores the platform’s increasing popularity among consumers.
The Roku Channel, in particular, has shown significant growth, ranking as the second most engaged app on the platform in the U.S. It accounted for 6.3% of total TV streaming in December 2025, up from 4.6% a year earlier, indicating its growing prominence in the streaming landscape.
Advertising Growth and Future Projections
In its report, Roku highlighted its advertising strength, noting that video advertising growth on its platform outpaced both the U.S. OTT (Over-The-Top) market and the broader digital advertising industry in 2025. This trend reflects the success of Roku’s strategic focus on advertising to drive revenue growth.
The company has set an ambitious goal for 2026: to reach 100 million streaming households globally. This target, coupled with the expected platform revenue growth of 18% to $4.89 billion, indicates Roku’s aspiration to continue its growth strategy.
For 2026, Roku projects a gross margin between 51% and 52%, while prioritizing disciplined operations and continued investment in platform expansion. This approach underscores Roku’s commitment to balancing sustainable growth with financial prudence, ensuring long-term profitability and shareholder value.
In conclusion, Roku’s impressive Q4 results and strong 2026 projections, underscored by its focus on advertising and platform expansion, demonstrate the company’s resilience and adaptability in the fast-paced, ever-evolving streaming industry.