Goldman Sachs lowers Yelp stock price target on ad headwinds

Yelp (YELP) expects Q4 2026 revenue between $347M and $352M. CEO Jeremy Stoppelman highlighted AI-driven advancements, including 30 new features. The company aims for a $250M other revenue run rate by 2028 end.

Yelp (YELP) stock fell 6.6% in pre-market trading after Q3 2026 results showed a 1% revenue decline to $371M and reduced annual guidance to $1.455B–$1.460B, below expectations. Advertising revenue dropped, with Services and Restaurants/Retail ads down 2% and 13% YoY, respectively. Analysts cut price targets, citing macro headwinds, though AI-driven 'Other revenue' surged 82% to $34M.

Yelp (YELP) reported Q3 2026 net revenue of $371M, down 1% YoY, with net income at $35M, down 12% YoY. Services ad revenue fell 2% YoY, while other revenue surged 82% YoY to $34M, driven by AI products like Yelp Assistant and Hatch. The company expects Q4 net revenue between $347M-$352M and adjusted EBITDA between $57M-$62M, with full-year net revenue now projected at $1.455B-$1.46B.

Yelp (YELP) reported Q3 EPS of $0.63, beating estimates by $0.18, with revenue at $371M, slightly above consensus. The company forecasted FY 2026 revenue of $1.46B, below analyst expectations. YELP stock is down 19.72% over the last 3 months and 36.13% year-over-year.

Yelp Inc. (YELP) reported Q3 net income of $34.6M, or 63 cents per share, exceeding analyst expectations of 43 cents. Revenue was $370.9M, also above forecasts of $368.9M, according to Zacks Investment Research.

Yelp (YELP) reported Q3 2026 revenue of $370.9M, beating estimates by 0.6%. EPS was $0.63, a 48.1% beat, and adjusted EBITDA was $92.27M, a 24.9% beat. Operating margin remained steady at 13.2%, while free cash flow margin increased to 22.8%. Despite the beats, the stock price dropped.