Why The Trade Desk Stock Fell 11.7% Friday Morning

Shares of The Trade Desk (TTD 2.15%) had a rough morning today. The digital advertising specialist reported Q1 2026 earnings on Thursday evening, beating Wall Street’s revenue targets but falling short on the bottom line. As a result, The Trade Desk’s stock opened 11.7% lower, climbing back to a 4.8% price drop as of this writing at 10:50 a.m. ET.

Image source: The Motley Fool.

Q1 2026 by the numbers

First-quarter sales rose 11.9% year over year, landing at $689 million. Adjusted earnings fell from $0.33 to $0.29 per diluted share. The analyst consensus had called for earnings near $0.32 per share on top-line sales of roughly $680 million, so it was a mixed bag. That being said, the results exceeded management’s guidance targets across the board.

Management celebrated strong sales despite heavy macroeconomic headwinds, including tariff-burdened advertiser budgets and geopolitical turbulence. The soft earnings resulted from a larger income tax bill than usual, alongside heavy spending on platform operations.

That shouldn’t be a surprise, though. The Trade Desk’s quarterly filings always remind investors that the company invests in long-term growth, not quick wins. Rising operating costs are always on the table.

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NASDAQ: TTD

The Trade Desk

Today’s Change

(-2.15%) $-0.51

Current Price

$22.98

Key Data Points

Market Cap

$11B

Day’s Range

$20.75 - $22.98

52wk Range

$19.74 - $91.45

Volume

2.1M

Avg Vol

20M

Gross Margin

77.83%

Putting the financials in context

Investors weren’t inspired by The Trade Desk’s guidance for the next period. Revenue should rise at least 8% year over year to a minimum of $750 million, and adjusted EBITDA profits were targeted at $260 million, down from $270 million in the year-ago period. The Trade Desk has a long history of setting modest targets and beating them, as it did in this week’s Q1 report, but the shrinking profit target is still noteworthy.

Furthermore, people worry about the company’s conflict with Publicis (PUBGY +1.14%), a massive advertising group with French roots. The Trade Desk’s CEO, Jeff Green, wants to put that drama to rest.

“I think that has been overdramatized and I am hopeful that we are nearing the end of this public discussion, so I am hopeful that our discussion today puts an end to it,” he said on the earnings call. “We continue to have great dialogue with Publicis about the next chapter of our partnership. Our negotiations are ongoing.”

Publicis has accounted for several billion dollars of The Trade Desk’s revenues over the last decade, so losing that relationship would sting. Investors are still hoping for a clear end to it.