| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 78 | 17.1x | 17.8x | Top tier | |
Growth | 73 | 11.6% | 7.1% | Top tier | |
Quality | 93 | 11.6% | 4.5% | Top tier | |
Safety | 78 | — | 2.6x | Top tier | |
Capital Return | 33 | — | 2.12% | Bottom tier | |
Momentum | 1 | -74.1% | 2.9% | Bottom tier | |
Sentiment | 72 | 21 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Trade Desk operates an independent platform for buying digital advertising that relies on data and artificial intelligence to select and optimize advertising opportunities in real time across the open internet. Most spending on the platform comes from Fortune 500 companies and their brands, and the company serves video, connected television, mobile, display, and audio channels, with media partnerships including Disney, Netflix, NBCUniversal, FOX, Paramount, Spotify, and News Corp. Its revenue-generating capacity is based on platform fees and products related to data, measurement, and decision-making, with management emphasizing that its model focuses on advertiser outcomes rather than selling media inventory it owns.
In Q2 of fiscal 2026, revenue reached $715 million, up 3% year over year, and net income was $64 million, or $0.14 per diluted share, equivalent to approximately 9% of revenue. Adjusted earnings before interest, taxes, depreciation, and amortization were $241 million at a 34% margin, while adjusted net income was $158 million, or $0.34 per share. Operating expenses rose 6% to $613 million, and operating expenses excluding stock-based compensation increased 12% to $504 million, driven primarily by platform operations, infrastructure, and artificial intelligence tools.
Video, including connected television, accounted for a low-fifties percentage of the business in Q2 of fiscal 2026, mobile accounted for a high-twenties percentage, display accounted for a low-teens percentage, and audio accounted for approximately 7%. The United States represented approximately 83% of revenue versus 17% for international markets, and connected television recorded growth exceeding 50% in both EMEA and APAC. EDGAR data for the 2026 TTM period showed revenue of $3.0 billion, gross profit of $2.3 billion, and net income of $432.6 million, compared with revenue of $2.9 billion and net income of $443.3 million in fiscal 2025.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is neutral, and the average price target is $14.63 within a wide range of $6 to $25, reflecting significant disagreement about the speed of a growth recovery. The average target is approximately 74% below the top of the 52-week range of $56.39 and only approximately 14% above the bottom of the range at $12.83; this valuation contraction is consistent with Q2 fiscal 2026 revenue growth of only 3%, the weak outlook for the following quarter, and the decline recorded on August 7, 2026.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue in Q2 of fiscal 2026 was approximately $715 million, up only 3% year over year, and management said on August 6, 2026 that the result fell short of its expectations. It attributed this to a combination of weak execution and economic pressures, including weak consumer spending, tariffs, and higher oil prices. Automotive and consumer packaged goods, which together represent approximately 25% of the business, were among the most affected categories, with pressure also persisting in food and beverage and home and garden.
The company expects revenue of at least $650 million in Q3 of fiscal 2026, compared with $715 million in the prior quarter. It also expects adjusted earnings before interest, taxes, depreciation, and amortization of approximately $160 million, compared with $241 million and a 34% margin in Q2. The chief financial officer explained on August 6, 2026 that visibility had become relatively limited and that the outlook did not assume a meaningful improvement in the environment during the quarter.
Management identified Audience Unlimited, the Zuma upgrade, and the new measurement framework as key initiatives in August 2026. In a campaign for a global advertiser, Audience Unlimited reduced both the cost of reaching a unique household and the CPM data cost by more than 25%, while Zuma was intended to improve Kokai's ease of use, simplify workflows, and expand the use of artificial intelligence. The measurement framework was in its initial beta phase on August 6, 2026, and aims to allocate advertising value more accurately across the customer journey rather than relying on the last click or view.
Yes, connected television and audio recorded double-digit growth in Q2 of fiscal 2026. Video, including connected television, accounted for a low-fifties percentage of the business, while audio represented approximately 7% and was the fastest-growing channel for the fourth consecutive quarter. Internationally, connected television growth exceeded 50% year over year in both EMEA and APAC during the same quarter.
The number of joint business plans reached 217 clients by the end of Q2 of fiscal 2026, up 38% year over year. Revenue covered by these plans grew at six times the rate of overall revenue growth because they align brands, their agencies, and the platform around shared goals and measurement. Management also said that most of the top 100 accounts grew at double-digit rates and that the growth team dedicated to winning back clients and developing business increased its book of business by more than 250% year over year.
The company ended Q2 of fiscal 2026 with approximately $1.5 billion in cash, cash equivalents, and short-term investments. During the quarter, it generated $154 million in operating cash flow and $136 million in free cash flow, alongside net income of $64 million. It also repurchased $78 million of Class A shares, with $269 million remaining under the repurchase authorization at the end of the quarter.
