Key Takeaways
- Trade Desk will report Q2 results on Aug. 6, with revenues expected to rise 8.3% to $751.6 million.
- CTV, retail media, JBP growth and international momentum are expected to support Trade Desk’s results.
- Macro pressure, higher AI costs and intensifying competition could weigh on Trade Desk’s margins.
The Trade Desk, Inc. (TTD – Free Report) will report its second-quarter 2026 results after market close on Aug. 6.
The Zacks Consensus Estimate for revenues is pinned at $751.6 million, up 8.3% from the prior-year reported number. The consensus estimate for earnings sits at 41 cents per share, flat year over year. The estimate has remained unchanged in the past 30 days.
For the June quarter, management expects revenues of at least $750 million and adjusted EBITDA of approximately $260 million.
Image Source: Zacks Investment Research
Over the trailing four quarters, TTD’s earnings beat the Zacks Consensus Estimate once, matched it once, and missed twice, resulting in an average negative surprise of 3.15%.
In the past year, shares of the company have lost 79.9% against the Zacks Internet Services industry’s growth of 72.3%.
Image Source: Zacks Investment Research
What Does Our Model Unveil for TTD?
Our proven model does not predict an earnings beat for Trade Desk this time around. 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. This is not the case here.
Trade Desk has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors at Play Ahead of TTD’s Q2 Results
Continued momentum in key business areas, such as Connected TV (“CTV”), is expected to have cushioned TTD’s top-line performance in the to-be-reported quarter. CTV is the fastest-growing segment of the digital ad market, given the ongoing shift from linear TV.
Increasing digital spending in CTV, particularly for premium content and live sports, is a key growth driver. The transition toward biddable CTV has been gaining momentum. The benefits of decision-based buying (like greater flexibility, control and performance) compared with traditional programmatic guaranteed or insertion-order models have been rendering it the logical choice for advertisers.
Beyond CTV, retail media has emerged as one of the fastest-growing areas in the digital advertising space. On the last earnings call, TTD highlighted that the retailers in its data marketplace now represent more than 80% of sales from top U.S. retailers, compared with Amazon’s (AMZN – Free Report) roughly 15% share. The company is also extending its Audience Unlimited offering and adding new retail media partnerships. This is likely to have supported second quarter revenue performance.
Further, explosive growth in Joint Business Plans (“JBP”) bodes well. In the first quarter, the company reported a 55% increase in JBP count, with new deal spend (excluding renewals) rising 40% year over year. It signed some 45 deals in March alone.
Management remains highly optimistic regarding its international business. The company noted strong momentum across EMEA and APAC, reflecting multi-year investments in those regions. International business currently represents roughly 18% of total revenues, a clear opportunity for long-term growth.
The Trade Desk Price and Consensus
The Trade Desk price-consensus-chart | The Trade Desk Quote
Management continues to view AI as the next major evolution of programmatic advertising. TTD expanded its AI portfolio through the launch of Koa Agents, an AI-powered agentic capability with Stagwell as the partner, and OpenTTD, a unified login and analytics platform. On the call, TTD added that it believes large language models and AI-powered search platforms could eventually create a new premium advertising channel, expanding its addressable market.
However, macro headwinds remain the primary risk. TTD highlighted ongoing pressure in key verticals such as Food & Drink and Home & Garden as CPG brands face geopolitical tensions, inflation and consumer softness. While automotive remains strong, it is also impacted by tariffs. These factors contributed to a more cautious second-quarter revenue outlook despite confidence in the company’s long-term positioning.
TTD is focused on embedding AI across the portfolio, which will further raise capex and operational costs. Rising expenses coupled with investments could compress margins if revenue growth slows. In the last reported quarter, total operating costs (excluding stock-based compensation) surged 18% year over year to $513 million. Expenses soared due to continued investments in enhancing platform capabilities, particularly in more AI-powered tools.
The company expects adjusted EBITDA margins in 2026 to remain in line with 2025, as it continues investing in AI capabilities, product innovation and go-to-market infrastructure.
Further, the competitive environment is intensifying. Walled gardens like Meta Platforms, Apple, Alphabet and Amazon offer fierce competition in this space as they control their inventory and first-party user data, allowing for highly targeted ad campaigns. AMZN’s expanding DSP business is giving tough competition to TTD, especially in this space.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Arista Networks (ANET – Free Report) currently has an Earnings ESP of +3.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANET is scheduled to report quarterly earnings on Aug. 4, 2026. The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s earnings and revenues is pegged at 89 cents per share and $2.83 billion, respectively. Shares of ANET have gained 49.8% in the past year.
Advanced Micro Devices, Inc. (AMD – Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2 at present. AMD is scheduled to report quarterly figures on Aug. 4, 2026. The Zacks Consensus Estimate for AMD’s to-be-reported quarter’s earnings and revenues is pegged at $1.61 per share and $11.32 billion, respectively. Shares of AMD have skyrocketed 169.3% in the past year.