New York, May 7, 2026, 18:04 EDT
The Trade Desk shares fell about 16% in after-hours trading on Thursday after the advertising-technology company forecast second-quarter revenue below Wall Street expectations, overshadowing a first-quarter sales beat. The stock was quoted near $19.66 after closing the regular session at $23.49.
The move matters because investors were looking for proof that The Trade Desk can steady growth in programmatic advertising — automated buying and selling of digital ad space — while marketers stay cautious with budgets. Instead, the report sharpened doubts about growth, competition and the company’s position in connected TV, or ads sold around streaming video on internet-linked television screens.
The company said revenue rose 12% to $688.9 million in the quarter ended March 31, from $616.0 million a year earlier. Net income fell to $40.0 million from $50.7 million, and non-GAAP diluted earnings per share dropped to 28 cents from 33 cents. Chief Executive Jeff Green called it “another strong quarter” and said “strategic upgrades” helped the company outperform in the period. ([The Trade Desk][3])
That was not enough. Adjusted earnings of 28 cents a share missed the 32-cent analyst estimate, even as revenue came in above the $679.5 million consensus. The company’s second-quarter revenue outlook of at least $750 million also fell short of the $772.4 million analysts had expected, while adjusted EBITDA guidance was about $260 million.
The guide implies about 8% revenue growth, a slower pace than the first quarter’s 12% and well below the 25% growth The Trade Desk posted a year earlier. Barron’s reported that the shares were already down 38% year to date before the after-hours hit, a sign that investors had little room left for another reset.
Competitive pressure remains a sore point. Amazon is the clearest name in the current debate, especially in connected TV, where it has content, commerce data and ad tools under one roof. Google also hangs over the wider digital ad market through search and video, leaving Trade Desk to defend its pitch as an independent platform for the open internet.
The March dispute with Publicis added another layer. Reuters reported then that Publicis advised clients against using Trade Desk’s platform after an audit alleged breaches tied to fees and opt-ins; Trade Desk’s shares fell after the report, and the company disputed the claims. That issue is still part of the investor backdrop, even if Thursday’s numbers were the immediate trigger.
Analysts were cautious before the print. Benzinga listed several recent target cuts, including UBS analyst Stephen Ju lowering his target to $31 while keeping a Buy rating, Wells Fargo analyst Alec Brondolo trimming his target to $24 with an Equal-Weight rating, and Rosenblatt analyst Barton Crockett cutting the stock to Neutral with a $25 target.
There is a but. Wedbush analyst Alicia Reese had upgraded Trade Desk to Neutral before earnings, saying pressure could be “largely offset” by World Cup ad spending and political advertising later in 2026. She also flagged the other side of the trade: competition and audits could limit longer-term growth if clients keep shifting budgets elsewhere. Benzinga
The Trade Desk tried to point investors back to operating strengths. Customer retention stayed above 95%, the company repurchased about $164 million of Class A shares in the first quarter, and it highlighted product and partnership moves in AI, connected TV and identity tools. But the market reaction showed that, for now, investors are paying more attention to the slope of revenue growth than to the list of initiatives.
The next test is simple and harder than it sounds: show that ad buyers are still moving money through Trade Desk at a rate that supports its valuation. A revenue beat no longer buys much patience when the next quarter points lower.
