GET DAILY SIGNALSGalaxy Digital (GLXY) Swings Back to Profitability in Q3 2026
Key Takeaways
- Galaxy Digital (GLXY) returned to profitability, reporting $323 million in net income for the third quarter of 2026, reversing an $85 million net loss in the prior quarter.
- Diluted earnings per share (EPS, profit allocated to each share) came in at $0.66, or $0.83 on an adjusted (non-GAAP) basis, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $455 million.
- Revenue of roughly $8.06 billion topped the Bloomberg-surveyed consensus estimate of about $7.8 billion, aided by rebounding crypto trading activity.
- The Data Centers segment delivered its first full quarter of Helios Phase I lease revenue, with all 133 MW (megawatts) of critical IT load handed over to CoreWeave.
- Galaxy's board authorized a new $200 million share repurchase program after completing its prior buyback of roughly 9.8 million shares.
- For more context on GLXY's major news, today's price move, price targets, and forecasts, explore Tickeron's dedicated pages for deeper, real-time analysis.
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Earnings Context and Why It Matters
Galaxy Digital (GLXY) sits at the intersection of two of the market's most closely watched themes: digital assets and AI infrastructure. The third quarter of 2026 was the first full period in which the company's Helios Phase I data center lease contributed revenue, marking a pivotal shift as long-term contracted cash flows begin to materialize alongside its crypto trading, lending, and asset management franchise. For investors, the results offered a test of whether Galaxy can convert its diversified strategy into consistent, recurring earnings rather than relying on volatile investment gains. The quarter also arrived amid a broader rebound in crypto sentiment, making the report a useful gauge of institutional demand for digital asset services. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Galaxy Digital reported net income of $323 million for the three months ended September 30, 2026, a sharp swing from the $85 million net loss recorded in the second quarter of 2026. Net income was lower than the $505 million reported a year earlier, reflecting a more balanced mix of operating and investment contributions. Diluted EPS was $0.66, while adjusted EPS reached $0.83. Adjusted EBITDA climbed to $455 million, compared with negative $77 million in the prior quarter.
Revenue of approximately $8.06 billion exceeded the Bloomberg consensus estimate of about $7.8 billion. Segment results highlighted a broadening earnings base: the Data Centers business generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA in its first full quarter of Helios Phase I operations, while Digital Assets contributed $71 million in adjusted gross profit. Treasury & Corporate delivered $419 million in adjusted gross profit, driven by appreciation across digital asset and investment positions.
Operationally, digital asset trading volumes rose 12% quarter-over-quarter, outperforming a declining broader spot market, and the average loan book grew 27% to $1.8 billion. Combined assets under management (AUM) and assets under stake (AUS) reached $10.4 billion, up 46% from June 30, 2026. Galaxy also completed a $3.5 billion senior secured notes offering to fund Helios I, Phase II construction.
Market Reaction and Investor Sentiment
Shares of Galaxy Digital (GLXY) rose about 8% in pre-market trading following the release, according to Bloomberg, as investors responded to the revenue beat, the return to profitability, and the early contribution from the Helios data center lease. The positive reaction also reflected relief that the quarter's gains were distributed across multiple segments rather than concentrated in a single area. The newly announced $200 million share repurchase authorization provided an additional signal of management's confidence in the balance sheet. Broader sentiment around digital assets remained constructive during the period, supported by a rebound in cryptocurrency prices and improving institutional engagement, which underpinned Galaxy's trading and lending activity.
Forward Outlook and Key Factors to Monitor
Investors will be watching several factors in the quarters ahead. The biggest is the continued ramp of the data center business. Helios I, Phase II will add 260 MW of critical IT capacity, with data hall deliveries scheduled to begin in the second quarter of 2027. Management expects construction spending to increase as that phase progresses, which could pressure near-term capital expenditure while setting up longer-term contracted revenue.
On the leasing front, Galaxy has more than 800 MW of approved capacity at Helios II not yet under lease, and management indicated it is taking time to secure favorable terms with investment-grade counterparties. The timing and economics of any future leasing agreement will be a key catalyst. The company's total gross power pipeline now exceeds 5.7 GW (gigawatts), underscoring the scale of the opportunity but also the execution risk tied to permitting and construction.
Within digital assets, the trajectory of trading volumes, loan book growth, and fee-generating products such as staking and the Galaxy Onchain Financing Rate will shape the franchise's earnings power. Finally, the firm's substantial cash, stablecoin, and U.S. Treasury position of $4.9 billion provides flexibility for continued share repurchases, strategic investments, and the management of maturing obligations. From what I see, this liquidity position stands out as a meaningful advantage.
Exploring Tickeron’s AI Tools in My Research
In my own work, I often turn to Tickeron’s AI Screener when evaluating names like this. It lets me quickly filter for technical patterns, fundamentals, and AI-driven signals across thousands of stocks and ETFs, which helps refine watchlists and spot ideas more efficiently than manual screening alone. The platform’s customizable filters for industry, market cap, volatility, and performance have become a regular part of how I cross-check results like these before drawing conclusions.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GLXY sees MACD Histogram just turned negative
GLXY saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 28, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 10 instances where the indicator turned negative. In 10 of the 10 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GLXY as a result. In 18 of 21 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 86%.
GLXY moved below its 50-day moving average on October 05, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GLXY crossed bearishly below the 50-day moving average on October 08, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 4 of 4 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GLXY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 84%.
The Aroon Indicator for GLXY entered a downward trend on October 27, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where GLXY's RSI Oscillator exited the oversold zone, 6 of 7 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 86%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 19 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +17.03% 3-day Advance, the price is estimated to grow further. Considering data from situations where GLXY advanced for three days, in 76 of 86 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
GLXY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 4 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.831) is normal, around the industry mean (3.578). GLXY has a moderately low P/E Ratio (-42.950) as compared to the industry average of (8.464). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (0.809). Dividend Yield (0.000) settles around the average of (7.367) among similar stocks. P/S Ratio (0.150) is also within normal values, averaging (16.763).
The Tickeron Price Growth Rating for this company is 87 (best 1 - 100 worst), indicating slightly worse than average price growth. GLXY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 94 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GLXY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
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