Core Insights - Reddit Inc. reported quarterly earnings of $0.8 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, and showing significant growth from $0.16 per share a year ago, resulting in an earnings surprise of +50.94% [1] - The company achieved revenues of $584.91 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.31% and increasing from $348.35 million year-over-year [2] - Reddit Inc. has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +125%, with actual earnings of $0.45 per share compared to an expected $0.2 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.81, with projected revenues of $634.08 million, and for the current fiscal year, the EPS estimate is $1.88 on revenues of $2.06 billion [7] Stock Performance - Reddit Inc. shares have increased approximately 29% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations of continued outperformance in the near future [6] Industry Outlook - The Internet - Software industry, to which Reddit Inc. belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]
Reddit Inc. (RDDT) Surpasses Q3 Earnings and Revenue Estimates