ROKU to Report Q2 Earnings: What's in the Cards for the Stock?

The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $1.3 billion, suggesting 16.98% year-over-year growth.

The consensus mark for earnings is pegged at 61 cents per share, unchanged over the past 30 days. This projection indicates a year-over-year increase of 771.43%.

Roku surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 107.32%.

Let us see how things are shaping up for the upcoming announcement.

Key Factors to Consider

Roku's second-quarter performance is expected to have been driven by its Platform segment. Advertising revenues are likely to have benefited from higher adoption of Ads Manager and deeper integrations with third-party demand-side platforms, including Amazon DSP, The Trade Desk and Google's Display & Video 360. Home screen advertising enhancements and expanding programmatic capabilities may have also supported monetization. However, advertising growth is likely to have moderated due to tougher year-over-year comparisons. The broader advertising spending environment also remained uncertain, which may have weighed on demand. 

Subscription revenues are likely to have benefited from the continued rollout of Tier 1 partners, including Apple TV and Peacock. Expansion of premium subscriptions into additional international markets may have also supported growth. Continued investments in AI-powered content discovery and advertising tools likely improved the user experience and platform efficiency. However, the financial contribution from these initiatives may have remained modest. Growth may have also normalized as the Frndly acquisition anniversary passed, reducing the inorganic boost seen in earlier quarters. 

The Devices segment is likely to have remained under pressure. Higher memory costs may have continued to weigh on device margins despite relatively stable unit demand. Recent price increases across Roku's streaming player portfolio may have provided some relief, though the benefit was likely to have been limited in the quarter. 

The pending acquisition by Fox Corporation remained a key development during the quarter. While the transaction is unlikely to have materially affected second-quarter operating results, it may have remained an important consideration for investors as regulatory and shareholder approval processes continued. Overall, competitive pressures and macroeconomic uncertainty likely continued to influence Roku's second-quarter performance.

What Our Model Says About Roku Stock

Our proven model does not conclusively predict an earnings beat for Roku this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.

Roku currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Sandisk Corporation SNDK is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Sandisk has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Sandisk’s fiscal fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days. 

Western Digital Corporation WDC is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Western Digital has an Earnings ESP of +3.22% and flaunts a Zacks Rank #1.

The Zacks Consensus Estimate for Western Digital’s fiscal fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days. 

MKS Inc. MKSI is scheduled to report second-quarter 2026 results on Aug. 5. Currently, MKS has an Earnings ESP of +2.64% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days.

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This article originally published on Zacks Investment Research (zacks.com).

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