Evercore ISI increased its price target for Roku Inc. to $150 from $145 while maintaining an Outperform rating in the wake of the company's fourth-quarter results. At the time of the report, Roku's shares were trading at $82.93 and were down 23.56% year-to-date.
Evercore characterized the quarter as a "clean beat and raise," with fourth-quarter revenue and EBITDA coming in ahead of Street projections by 3% and 17%, respectively. The firm also noted that Roku's revenue rose 16.61% over the trailing twelve months, and that three analysts had recently lifted their earnings estimates.
Platform revenue growth accelerated to 18% year-over-year in Q4, up from 17% in Q3, despite facing a comparison that the firm said was 10 percentage points tougher. Evercore expects platform growth to accelerate further, forecasting it to top 21% in Q1 2026.
Analysts singled out multiple potential growth drivers for Roku across 2026. Those catalysts include integration with the Amazon DSP, a planned Home Screen refresh, and the impact of U.S. political advertising. Evercore also identified Roku Ad Manager as a potential multi-year contributor to the company's top-line expansion.
On the margin and cash-flow outlook, Evercore raised its fiscal 2027 EBITDA forecast by 6% to $835 million. The firm observed that Roku trades at roughly 19x FY26 EV/EBITDA, placing it among the more richly valued names in the SMID Internet cohort, but concluded the premium is supported by accelerating fundamentals, identifiable catalysts and solid conversion from EBITDA to free cash flow.
Company-reported results for the fourth quarter of 2025 were broadly strong. Roku reported earnings per share of $0.53, nearly double the prior projection of $0.27 - a 96.3% analyst-surprise. Platform revenue growth of 18% exceeded investor expectations of roughly 17%, a point noted by other market watchers.
Following the results, several brokerages reiterated or adjusted their positions. JPMorgan maintained an Overweight rating and left a $125.00 price target in place, while Rosenblatt upgraded the stock from Neutral to Buy and raised its price target from $12.00 to $118.00. Rosenblatt's upgrade was also driven by Roku's guidance for the first quarter and the full year of 2026, which the firm said exceeded market forecasts.
Despite those encouraging metrics and analyst reactions, Roku's stock fell 5.85% in after-hours trading following the release of results. Market participants and commentators attributed the move to broader market dynamics or profit-taking, though the exact drivers of the decline were not specified.
Summary
- Evercore raises Roku price target to $150 from $145 and keeps Outperform.
- Roku delivered a Q4 beat on revenue and EBITDA, with EPS of $0.53 versus a $0.27 projection.
- Platform revenue grew 18% year-over-year in Q4 and is expected to exceed 21% in Q1 2026.
Key points
- Financial performance - Q4 revenue and EBITDA beat Street expectations by 3% and 17%, respectively, and trailing-12-month revenue rose 16.61%.
- Growth catalysts - Amazon DSP integration, a Home Screen refresh, U.S. political advertising and Roku Ad Manager are cited as potential drivers through 2026.
- Valuation and outlook - Evercore raised FY27 EBITDA to $835 million and values Roku at about 19x FY26 EV/EBITDA, noting that the premium reflects accelerating fundamentals and strong EBITDA-to-FCF conversion.
Risks and uncertainties
- Valuation - Roku's multiple is described as relatively rich within SMID Internet, which introduces sensitivity to any slowdown in the anticipated acceleration.
- Market reaction - The stock's 5.85% drop in after-hours trading despite strong results indicates potential for volatility tied to market dynamics or profit-taking.
- Dependence on catalysts - Growth expectations are linked to specific initiatives such as Amazon DSP integration, Home Screen refresh and political ad demand, making outcomes contingent on execution and market conditions.
Impacted sectors
- Streaming and media distribution
- Digital advertising and ad platforms
- SMID Internet equities and ad-supported consumer technology