Roku Inc. (NASDAQ: ROKU) shares surged more than 10% intra-day on Friday after the streaming platform operator reported fourth-quarter earnings that significantly exceeded analyst expectations and issued stronger-than-anticipated 2026 guidance.
The company posted adjusted EPS of $0.53, nearly double the consensus estimate of $0.27. Revenue totaled $1.38 billion, matching analyst expectations and representing 16% year-over-year growth. Platform revenue, which includes advertising and content distribution, increased 18% to $1.22 billion, while Devices revenue rose 3% to $171 million.
For the first quarter of 2026, Roku projected revenue of $1.2 billion, exceeding the consensus estimate of $1.17 billion. Full-year 2026 revenue is expected to reach $5.5 billion, above analyst projections of $5.34 billion.
Streaming hours rose 15% year over year to 145.6 billion for full-year 2025. The Roku Channel ranked as the second most engaged app on the platform in the U.S., accounting for 6.3% of total TV streaming in December 2025, up from 4.6% a year earlier.
Roku also highlighted continued strength in advertising, noting that video advertising growth on its platform outpaced both the U.S. OTT market and the broader digital advertising industry in 2025. The company expects to reach 100 million streaming households globally in 2026.
For 2026, Roku anticipates Platform revenue growth of 18% to $4.89 billion, with gross margin expected between 51% and 52%, while maintaining disciplined operations and continued investment in platform expansion.
