Roku posts strong Q3 results as $22 billion Fox acquisition moves forward
Roku reported third‑quarter 2026 revenue of $1.5 billion, up 24% year‑over‑year, and earnings per share of $1.20, beating consensus estimates. Platform revenue rose 23% to $1.3 billion, while devices revenue jumped 33% to $194 million despite a negative gross margin. The company highlighted a 23% increase in ad revenue to $727.4 million and a 9% rise in streaming hours to 39.9 billion. Roku’s pending merger with Fox Corp., valued at $22 billion ($160 per share), is expected to close in the first half of 2027.
Why it matters
The $160‑per‑share acquisition price caps upside for Roku shareholders, even though the earnings beat shows strong operating performance. Fox gains a high‑growth streaming platform that could boost its advertising and subscription revenue streams once the deal closes.
Key facts
- 1Revenue was $1.5 billion, up 24% YoY. finance.yahoo.com
- 2EPS was $1.20 per share, beating estimates by $0.67. investing.com
- 3Platform segment revenue grew 23% YoY to $1.3 billion. finance.yahoo.com
- 4Devices revenue increased 33% YoY to $194 million, with a negative gross margin. finance.yahoo.com
- 5Advertising revenue rose 23% YoY to $727.4 million. deadline.com
- 6Streaming hours climbed 9% YoY to 39.9 billion. deadline.com
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.