SAN JOSE, May 1, 2026, 09:03 PDT
- Roku bumped up its 2026 platform revenue outlook, crediting a first-quarter boost from both advertising and subscription growth.
- Friday, shares climbed, with investors shrugging off softness in the devices business.
- The primary cost concern for the back half is still higher memory prices.
Roku Inc lifted its full-year forecast for platform revenue following stronger-than-anticipated gains in first-quarter advertising and subscriptions, sparking a rise in the streaming platform’s shares on Friday. Roku now projects platform revenue growth of almost 21% for the year, targeting roughly $5.0 billion. That’s an increase from its previous outlook for 18% growth, or $4.89 billion.
The significance here: Roku’s real profit engine isn’t hardware—it’s the platform side that gets Wall Street’s attention. Advertisers are shifting budgets to connected TV, meaning internet-based viewing on smart TVs and streaming gadgets, because it lets them target audiences and track campaign performance with much greater precision than old-school linear TV ever could.
In April, Roku crossed the 100 million mark for global streaming households, expanding its advertising and subscription reach. That kind of scale hands Roku more negotiating power as advertisers and media firms compete for attention on the TV home screen.
Total net revenue hit $1.25 billion in the March quarter, a 22% jump year-over-year. Platform revenue climbed 28% to $1.13 billion. Net income came in at $85.7 million, swinging from last year’s $27.4 million loss.
Advertising revenue jumped 27%, hitting $612.7 million, while subscriptions brought in $518.5 million—up 30%—according to the filing. On the other hand, devices revenue slipped 16% to $117.6 million, highlighting the gap between Roku’s platform business and its squeezed hardware segment.
Roku is looking for net revenue of roughly $1.3 billion in the second quarter, with adjusted EBITDA set at $170 million. For the full year, the company puts adjusted EBITDA at $675 million. Adjusted EBITDA excludes interest, tax, depreciation, amortization, and certain other charges.
The stock last changed hands at $121.49, marking a 4.2% gain after climbing to an intraday peak of $129.39. Following the upbeat forecast, Reuters said shares jumped 10% in after-hours trading.
Roku’s top brass—founder and CEO Anthony Wood, along with CFO Dan Jedda—told shareholders in their letter that they still see the company on track for $1 billion in free cash flow by 2028, or possibly ahead of that mark. During the quarter, Roku bought back $100 million worth of shares, pushing total repurchases to $250 million since Q3 under its $400 million program.
Analysts wasted little time. Needham’s Laura Martin bumped her price target on Roku up to $140 from $110, telling Benzinga the company is “the largest gatekeeper for TV monetization.” KeyBanc, JPMorgan, and Rosenblatt followed suit, nudging their targets higher to $150. Benzinga
The race remains close. Roku OS led with 28% of U.S. connected-TV platform usage, with Samsung’s Tizen holding 23%, according to Parks Associates. Amazon Fire TV, LG webOS, and Vizio SmartCast trailed, each capturing smaller shares. “Control of the platform layer is central to competition in the connected TV market,” said Michael Goodman, director at Parks Associates. Parks Associates
Costs are the main concern here. Roku flagged tighter memory-chip supply as a headwind for device margins heading into the second half. The company points out that its TV OS relies on less dynamic and storage memory than competitors. Still, if component prices stay elevated or retail demand slips, the devices segment could weigh more on full-year results.
Right now, Roku’s getting a nod from investors on its ad and subscription momentum. The real challenge comes later: sustaining that pace once the initial first-quarter boost from big events fades, especially with a murkier outlook into the back half of the year.
