News · Roku, Inc. (ROKU) · Communication Services

Roku rises after strong Q3 results, earnings beat and ad growth lift shares

Session of November 3, 2026 · Published November 4, 2026 · 3 min read

What happened

Roku (ROKU) rose 3.1% on November 3, 2026, after the company reported third-quarter results that beat expectations because of advertising revenue growth and reduced marketing spend. The company reported total revenue of $1.5 billion for the quarter. Roku issued a formal Q3 2026 release and directed investors to its shareholder letter, and it said it would not host an earnings call because of the pending acquisition by Fox Corporation, according to Business Wire and Zacks Investment Research.

Closing price over the last 30 trading sessions. On November 3, 2026, ROKU closed at $160.36, up 3.1% on the day and 4.5% higher than 30 sessions earlier.

How big was the move

The stock closed at $160.36 and rose 3.1% on the day, adding 2.4% over the last five sessions. Trading volume was 1.6 times its 20-day average and the move was 3.4 times a typical daily move for this stock. The S&P 500 rose 0.4% on the day while the Communication Services sector median rose 0.3%, leaving Roku 2.8 percentage points better than the sector median. The stock’s market value stood at $20.50 billion and its market sensitivity is captured by a beta of 2.17, indicating the stock tends to move more than the market. In the past five years the stock had 202 sessions with a gain of at least 3.1%; twenty trading days later the median result was a decline of 2.4%, and 90 of 202 were higher.

Each bar is one day's price change; the outlined bar is November 3, 2026. A typical daily move over the past year was 2.6%, so the latest move equals 1.2 times that. Moves outside the dashed lines (about 5.1%) are unusual.

The technical picture

The stock sat 3.0% above its 20-day moving average and 3.4% above its 50-day moving average, and it was 25.0% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend. The stock has spent 149 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) was 65, in a neutral range between 30 and 70, and the shares were 0.6% below the 52-week high. Over one month the stock rose 4.5% and over three months it rose 9.1%; over one year the stock rose 51.1%, which is 40.4 percentage points ahead of the S&P 500. Volatility was 15% annualized over 60 days, lower than 98% of its own readings over five years.

Closing price over the past year. ROKU ends the period at its 52-week high, above its 50-day average ($155.15) and above its 200-day average ($128.26).

Fundamentals and valuation

For the four quarters through September 30, 2026, Roku reported revenue of $5.50 billion, which grew 21.1% from a year earlier. That followed revenue growth of 18.5% one quarter earlier. Diluted earnings per share for the period were $3.38. Gross margin was 45.3% versus 43.6% a year earlier, and operating margin improved to 7.8% from 2.4% a year earlier. Free-cash-flow margin was 16.7% and return on invested capital was 7.4%. The balance sheet showed net cash of $2.12 billion, while share count over one year increased by 1.5%.

Quarterly revenue by period end. The latest quarter brought $1.5B, 24.1% more than the same quarter a year earlier.

On valuation metrics the stock traded at 47.4 times trailing earnings and 54.5 times expected earnings, with a free-cash-flow yield of 4.5%. Those multiples reflect the market pricing of the company’s exceptional Growth score against more modest near-term cash yields and a balance sheet with positive net cash. PromtFinance scores rank Roku high on Growth at 93 and Momentum at 99, while Value scored 28, highlighting the contrast between rapid expansion and a rich valuation.

Earnings and analyst expectations

Roku’s last report, on November 2, 2026, showed earnings per share of $1.20 against $0.53 expected, 126.4% above estimates. The company has recorded 11 consecutive quarters beating estimates and its average surprise over the last four reports was 91.7% above estimates. The next report was scheduled for November 5, 2026. The typical two-day reaction after recent reports was that the stock rose 0.6%.

Diluted earnings per share by quarter. The latest quarter shows $1.20, against $0.16 in the same quarter a year earlier.

Analysts’ consensus price target stood at $161.38, 0.6% above the closing price, based on 45 analysts. Forty-nine percent of ratings were Buy or Strong Buy and the consensus rating was Buy. Those figures underscore why a strong report can lift a richly priced stock: high expectations already bake in rapid growth, leaving little room for disappointment despite strong execution.

What to watch

November 5, 2026: next scheduled report.
The company said it would not host an earnings call because of the pending acquisition by Fox Corporation.
Distance from the 52-week high: 0.6% below the 52-week high.
Trading volume was 1.6 times its 20-day average on the session.
Time above the 200-day average: 149 consecutive trading days.

Full ROKU analysis: scores, chart and financials →