RDDT tops Q1 estimates as revenues jump 69% and ad growth surges, sending shares higher while strong user growth and margins highlight monetization momentum.
Shares of social media platform Reddit Inc (NYSE:RDDT) are surging today, last seen up 12% at $164.52 and earlier jumping as high as $167.50.
Reddit Inc (NYSE:RDDT) reported stronger-than-expected first-quarter results on Friday, with revenue surging past Wall Street estimates as the social media platform continued to gain traction with advertisers adopting its lower-funnel advertising products. The company posted revenue of $663 million, topping analyst estimates of $611 million, while adjusted earnings per share came in at $1.01, well ahead of the $0.58 expected.
Shares of Reddit surged in premarket trading on Friday after the company reported stronger-than-expected first-quarter results and issued an upbeat revenue forecast, highlighting growing returns from its artificial intelligence-driven advertising strategy. The stock rose about 12% ahead of the open, extending gains after climbing 6.3% in after-hours trading following the earnings release.
After being harried by complaints that its search function needed improving, Reddit has in the last few years invested in its search engine, and has even added AI features to help its users find what they're looking for. It appears that investment is finally paying off: The company has seen a 30% year-on-year jump in the number of people using search every week, CEO Steve Huffman said on Thursday.
Reddit, Inc. (RDDT) Q1 2026 Earnings Call Transcript
Although the revenue and EPS for Reddit Inc. (RDDT) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Reddit CEO Steve Huffman said the platform's vast library of human conversations makes it a critical input for AI, calling it “the fuel” behind the technology. He emphasized Reddit's “lightweight” model allows it to benefit from the AI boom without the heavy costs faced by competitors.
Reddit Inc. (RDDT) came out with quarterly earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.13 per share a year ago.
Reddit reported first-quarter earnings and revenue that beat analyst estimates. The company said second-quarter sales should come in the range of $715 million to $725 million, while analysts were looking for $712 million.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for Reddit Inc. (RDDT), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended March 2026.
Reddit Inc. (RDDT) closed at $154.89 in the latest trading session, marking a +1.26% move from the prior day.