Roku Predicts Higher Revenue, Shares Climb

• Annual revenue forecast of $5.50 billion exceeds analyst estimates of $5.34 billion
• Platform revenue expected to grow 18% to $4.89 billion in 2026
• Growth driven by strong ad sales as more customers switch to streaming platforms and connected TV devices become primary viewing methods

Summary

Roku Inc. forecasts 2026 annual revenue above Wall Street expectations, projecting $5.50 billion compared to analysts' consensus estimate of $5.34 billion, according to LSEG data. The company's shares climbed following the announcement made on February 12.

Key Revenue Drivers:

• Recovery in the digital advertising market
• Accelerating consumer shift toward ad-supported streaming platforms
• Platform revenue specifically expected to grow 18% to $4.89 billion in 2026

Market Context:

Roku is capitalizing on fundamental changes in media consumption patterns, with streaming viewership expanding substantially. Connected TV devices have become primary viewing platforms for many households, positioning Roku favorably as customers increasingly migrate to streaming services. The company reports strong advertising sales momentum as this transition accelerates.

Market Implications:

The positive forecast signals confidence in the streaming advertising ecosystem's health and suggests the digital ad market downturn may be easing. Roku's optimistic outlook contrasts with some competitors facing headwinds in securing digital advertising dollars, as evidenced by Pinterest's concurrent downbeat revenue forecast reported the same day. The company's ability to monetize its platform through advertising demonstrates the viability of ad-supported streaming models as consumer preferences evolve away from traditional television and toward connected TV platforms.

The guidance reinforces Roku's position as a key beneficiary of cord-cutting trends and the broader digital transformation in media consumption.