Overview
Evercore ISI has reiterated an Outperform rating on LiveRamp Holdings Inc, keeping a $37.00 price target following the company’s fiscal third-quarter results. At a prevailing share price of $22.42, that price target implies approximately 65% upside, while the stock currently sits near its 52-week low.
Quarterly performance
LiveRamp reported total revenue of $212 million for the quarter, a 9% year-over-year gain and modestly ahead of Street expectations roughly set at $211 million. The company also delivered operating income above guidance. Over the last twelve months the firm recorded revenue growth of 9.18% and remained profitable during that period.
Earnings per share came in at $0.76, outpacing the consensus forecast of $0.68 and producing an EPS surprise of 11.76%. Revenue for the quarter was reported at $212 million versus a projection of $211.55 million, representing the same 9% year-over-year expansion. Despite the favorable results, the stock slipped about 1.71% in aftermarket trading.
Guidance and margins
Management slightly narrowed and raised the fiscal 2026 revenue outlook to a range of $810 million to $814 million, up from the prior $804 million to $818 million band. The company maintained its non-GAAP operating income guidance at approximately $180 million and reaffirmed an expectation of roughly a 22% non-GAAP operating margin. Management also signaled increasing visibility toward about 10% revenue growth next year and described a meaningful step toward achieving Rule of 40 dynamics in fiscal 2027.
Balance sheet and cash flow
LiveRamp’s balance sheet showed more cash than debt and a current ratio of 2.72, highlighting a healthy short-term liquidity position. Analysis included in recent coverage points to a robust free cash flow yield of 12% for the company.
Sales traction and product momentum
The company reported $11 million of net new annual recurring revenue (ARR) growth for the quarter and emphasized strong sales execution and expansion activity. LiveRamp’s data collaboration platform continues to see adoption across specific use cases, with Cross-Media Measurement, Clean Room insights, and Commerce Media cited as key drivers of growth.
Analyst commentary and market positioning
Evercore ISI’s note praised LiveRamp for "doing a solid job of controlling the controllable," while cautioning that shares may remain range-bound until conditions in the broader software sector improve. The firm pointed to the company’s operational execution but framed upside beyond the peer group as tied to a healthier software market environment.
Market activity ahead of and after the report reflected some investor skepticism: the stock has fallen about 31% over the past six months despite recent operational beats and upward revisions. Nevertheless, four analysts have raised their earnings expectations recently, signaling confidence among some sell-side firms in the company’s near-term trajectory.
Other analyst action
In related coverage, Susquehanna reiterated a Positive rating on LiveRamp and retained a $50.00 price target, citing strong execution and ongoing sales momentum. Susquehanna’s model showed the quarterly revenue outcome slightly above its estimate, and their continued endorsement underscores differing outlooks among research providers.
Takeaway
LiveRamp’s fiscal third quarter delivered results that modestly exceeded consensus on both revenue and earnings, reinforced by net new ARR growth and a solid balance sheet. Management narrowed revenue guidance for the fiscal year while keeping profitability and margin expectations intact. Analysts continue to voice cautious optimism, balancing demonstrated execution against a broader software market that may constrain multiple expansion in the near term.
Key points
- Evercore ISI reaffirmed an Outperform rating and a $37.00 price target for LiveRamp, implying about 65% upside from the $22.42 share price; the stock is trading near its 52-week low.
- LiveRamp reported $212 million in Q3 revenue, up 9% year-over-year, delivered EPS of $0.76 versus $0.68 expected, and produced $11 million of net new ARR growth.
- Management narrowed fiscal 2026 revenue guidance to $810 million - $814 million, kept non-GAAP operating income guidance near $180 million, and reiterated an approximate 22% non-GAAP operating margin target.
Risks and uncertainties
- Broader software market dynamics could keep the stock range-bound despite company-level execution - this impacts software and cloud-related market sectors.
- Near-term share price volatility is evident, with the stock down about 31% over six months and a modest aftermarket decline following the quarter - this affects investor sentiment in adtech and data-platform equities.
- Although guidance was narrowed and margins reiterated, any future deviation from the revenue or margin targets would introduce execution risk for investors focused on growth and profitability metrics.