GET DAILY SIGNALSRoku Posts Strong Q3 Results With Acquisition by Fox on the Horizon (ROKU)
Key Takeaways
- Total revenue rose 24% year over year to about $1.5 billion, surpassing the Wall Street consensus of roughly $1.41 billion.
- GAAP earnings per share came in at $1.20, far above the analyst consensus of about $0.53 to $0.55.
- Advertising revenue grew 23% to $727 million, marking a ninth consecutive quarter of double-digit growth.
- Net income jumped to $183 million, up from $25 million in the same quarter a year earlier.
- Streaming hours reached 39.9 billion, up 9% year over year.
- Roku issued no financial guidance and held no earnings call due to its pending acquisition by Fox Corporation.
Why This Quarter Stands Out
Roku’s third-quarter results carry extra significance because they could be among the last filed as a standalone public company. In June 2026, Fox Corporation agreed to acquire ROKU for roughly $22 billion, or $160 per share, with the transaction slated to close in the first half of 2027. Against that backdrop, investors are focusing less on near-term guidance and more on whether the core advertising and platform business continues to show strength heading into the merger. These numbers provide a clear snapshot of monetization trends and subscription momentum before ROKU financials are integrated into a larger media entity.
The Quarter in Detail
ROKU reported total revenue of approximately $1.5 billion for the third quarter of 2026, up 24% year over year and ahead of the analyst consensus near $1.41 billion. GAAP earnings per share reached $1.20, well above the expected range of roughly $0.53 to $0.55. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Platform revenue, which covers advertising and subscriptions, increased 23% to $1.3 billion. Advertising revenue within that segment rose 23% to $727 million, while subscriptions revenue grew 23% to $581 million. Devices revenue climbed 33% to $194 million, although that segment recorded a negative gross margin largely due to higher memory costs.
Total gross profit advanced 24% year over year to $649 million. The company posted net income of $183 million, adjusted EBITDA of $249 million, and trailing-twelve-month free cash flow of $796 million. Streaming hours totaled 39.9 billion, reflecting a 9% increase from the prior year.
Market Reaction and Deal Dynamics
Shares of ROKU moved little in after-hours trading, gaining only about 0.4%. The muted response reflects the stock’s alignment with the fixed $160 per-share acquisition price, which limits the usual volatility that follows a sizable earnings beat. Investor attention has shifted toward deal completion rather than quarterly outperformance. The lack of an earnings call or updated guidance underscores the transitional phase, with focus now on the regulatory timeline and closing conditions.
What Comes Next
The main driver for ROKU shareholders remains the Fox acquisition closing in the first half of 2027. Monitoring regulatory approvals and any updates on closing conditions will be essential, as the $160 price effectively anchors valuation in the interim. Operationally, the company indicated it remains on track with the second-half 2026 outlook outlined in its proxy statement. Areas worth watching include continued advertising growth, the rollout of Premium Subscription bundles, and performance of the new OLED TV lineup. Device gross margins face pressure from memory costs, and the shift toward Premium Subscriptions has slightly compressed subscription margins; both trends merit attention for signs of stabilization.
AI Tools in My Research Workflow
When evaluating names like ROKU and its peers, I frequently use Tickeron’s AI Screener to quickly filter for technical patterns, fundamentals, and sector momentum. It helps surface comparable setups without spending hours on manual screens, which keeps my process efficient while I track how streaming companies are performing ahead of broader industry shifts.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
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.
ROKU in upward trend: 10-day moving average broke above 50-day moving average on October 23, 2026
The 10-day moving average for ROKU crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
ROKU moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.58% 3-day Advance, the price is estimated to grow further. Considering data from situations where ROKU advanced for three days, in 246 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 78%.
Bearish Trend Analysis
The 10-day RSI Indicator for ROKU moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In 21 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 68%.
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ROKU as a result. In 72 of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
The Moving Average Convergence Divergence Histogram (MACD) for ROKU turned negative on October 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 39 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ROKU 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 74%.
ROKU broke above its upper Bollinger Band on October 19, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ROKU entered a downward trend on October 16, 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.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 27 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. ROKU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 61 (best 1 - 100 worst), indicating strong sales and a profitable 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 Valuation Rating of 83 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (8.180) is normal, around the industry mean (12.963). P/E Ratio (64.531) is within average values for comparable stocks, (38.874). Projected Growth (PEG Ratio) (0.594) is also within normal values, averaging (2.376). Dividend Yield (0.000) settles around the average of (0.045) among similar stocks. P/S Ratio (4.566) is also within normal values, averaging (2.932).
The Tickeron PE Growth Rating for this company is 91 (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. ROKU’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 78, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a developer of applications for digital media
Industry MoviesEntertainment
Advertisement