Robinhood Markets' Quarterly Earnings Preview: What You Need to Know

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Robinhood Markets' Quarterly Earnings Preview: What You Need to Know

Menlo Park, California-based Robinhood Markets, Inc. (HOOD) operates financial services platform, allowing users to invest in stocks, exchange-traded funds (ETFs), and American depository receipts. Valued at $91.6 billion by market cap, the company offers fractional trading, recurring investments, access to investing on margin, fully-paid securities lending, cash sweep, instant withdrawals, retirement program, around-the-clock trading, joint investing accounts, event contracts, future contract services, and short selling. The global leader in financial services is expected to announce its fiscal third-quarter earnings for 2026 after the market closes on Tuesday, Oct. 27.

Ahead of the event, analysts expect Robinhood Markets to report a profit of $0.55 per share on a diluted basis, down 9.8% from $0.61 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

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For the full year, analysts expect Robinhood Markets to report EPS of $2.19, up 6.8% from $2.05 in fiscal 2025. Its EPS is expected to rise 37.4% year over year to $3.01 in fiscal 2027. 

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HOOD stock has underperformed the S&P 500 Index’s ($SPX) 15.2% gains over the past 52 weeks, with shares down 20.8% during this period. Similarly, it underperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 7.3% gains over the same time frame.

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HOOD has underperformed as volatile crypto trading weighed on transaction revenue and amplified sensitivity to retail sentiment. Rising competition in both crypto and brokerage, coupled with regulatory overhang around digital assets, tokenized securities and event contracts, plus concerns over valuation, softer core trading activity and compliance risks, have pressured the stock.

Analysts’ consensus opinion on HOOD stock is bullish, with a “Strong Buy” rating overall. Out of 30 analysts covering the stock, 22 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” four give a “Hold,” and one recommends a “Strong Sell.” HOOD’s average analyst price target is $135.97, indicating a notable potential upside of 39% from the current levels. 


On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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