Warby Parker rises 22.5% after quarterly results beat revenue estimate

What happened

Warby Parker (WRBY) rose 22.5% on November 5, 2026, because its third-quarter results showed revenue growth and mixed earnings. The company reported third-quarter 2026 revenue of $244.7 million, a 10.4% increase year over year. It reported earnings per share of $0.04 against $0.09 expected, 57.4% below estimates. The stock opened 21.8% above the previous close and closed at $26.08 as investors parsed the numbers.

How big was the move

The stock rose 22.5% on a day when the S&P 500 fell 4.4% and the Consumer Cyclical sector median fell 3.4%, making the move 25.9 percentage points better than the sector median. Trading volume was 3.7 times its 20-day average and the session’s change was 4.7 times a typical daily move for this stock. Over the last five sessions the stock rose 6.1% while the S&P 500 over five sessions fell 4.7%, underlining that the reaction was company-specific because of the earnings release.

The technical picture

At the close the stock sat 5.2% above its 20-day moving average, 4.7% above its 50-day moving average and 4.0% above its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend despite the recent push higher. Relative Strength Index (14 days) was 55, which is between 30 and 70, a neutral range, and the stock stood 15.9% below the 52-week high.

Over one month the stock rose 3.0%, over three months it fell 1.4%, and over one year it rose 32.7%, which is 24.1 percentage points ahead of the S&P 500. Volatility was 75% annualized over 60 days, higher than 64% of its own readings over five years, reflecting that the stock has tended to move more sharply than usual; that pattern is consistent with its market sensitivity, a beta of 1.33, which indicates the stock tends to move more than the market.

Fundamentals and valuation

On a trailing four-quarter basis through September 30, 2026, Warby Parker reported revenue of $934.7 million, which grew 9.9% from a year earlier. Diluted earnings per share for that period were $0.06, a rise of 1664.7% from a year earlier, and gross margin was 54.7%, compared with 54.4% a year earlier. Operating margin was 0.2% and free-cash-flow margin was 2.3%.

The company reported net cash of $23.1 million on the balance sheet and share count over one year increased by 1.0%. Valuation remained elevated: the stock traded at 434.7 times trailing earnings and 62.2 times expected forward earnings, with a free-cash-flow yield of 0.7%. PromtFinance ranked the company as 5 for Value (Very weak) but stronger on Growth at 76 and Quality at 84, indicating the market is pricing future growth and quality attributes into a stretched valuation.

Earnings and analyst expectations

The company’s November 5, 2026, report showed a split: revenue beat consensus while the earnings per share result was 57.4% below expectations. Consecutive quarters beating estimates stood at 0 and the average surprise over the last four reports was 20.7% below estimates, suggesting analysts have tended to be disappointed on the bottom line. Typical two-day reactions after recent reports had been a rise of 5.8%.

Analysts maintained a consensus price target of $30.33, which is 16.3% above the closing price, based on 16 analysts covering the stock. Fifty-six percent of those ratings were Buy or Strong Buy and the consensus rating was Buy. The next scheduled report is February 25, 2027.

What to watch

• February 25, 2027: next report date
• Consensus price target of $30.33, 16.3% above the closing price
• PromtFinance scores showing Growth 76 and Value 5, indicating growth and quality are rated stronger than value
• Net cash of $23.1 million and free-cash-flow margin of 2.3%