Reddit Earnings Preview: What to Expect

Reddit, Inc. (RDDT), headquartered in San Francisco, California, operates a digital community. Valued at $30.8 billion by market cap, the company offers a social networking platform where anyone can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities, and find belonging. The leading social media and content platform is expected to announce its fiscal third-quarter earnings for 2026 in the near term. 

Ahead of the event, analysts expect Reddit to report a profit of $1.30 per share on a diluted basis, up 62.5% from $0.80 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect Reddit to report EPS of $5.27, up 101.2% from $2.62 in fiscal 2025. Its EPS is expected to rise 31.7% year over year to $6.94 in fiscal 2027. 

RDDT stock has notably underperformed the S&P 500 Index’s ($SPX) 19.2% gains over the past 52 weeks, with shares down 19.5% during this period. Similarly, it underperformed the State Street Communication Services Select Sector SPDR ETF’s (XLC) 1.2% losses over the same time frame.

Reddit shares have faced pressure after investors worried that Alphabet Inc.'s (GOOGL) AI-generated summaries could replace traditional search links, threatening the platform's referral traffic and growth. This concern, highlighted by slowing domestic user growth and CEO Steve Huffman calling search referrals "choppy," overshadowed the company's strong Q2 earnings.

Analysts’ consensus opinion on RDDT stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 32 analysts covering the stock, 19 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 11 give a “Hold,” and one recommends a “Strong Sell.” RDDT’s average analyst price target is $211.45, indicating a notable potential upside of 32.2% 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.