Duolingo(US:DUOL) Zhi Tong Cai Jing·2026-02-27 14:27Core Viewpoint - Duolingo (DUOL.US) experienced a significant pre-market drop of over 26%, closing at $85.82, following the release of its fourth-quarter earnings report which, despite beating analyst expectations, provided a disappointing outlook for 2026 [1] Financial Performance - The company reported an adjusted earnings per share of $0.84 for the fourth quarter, surpassing analyst expectations of $0.83 [1] - Revenue grew by 35% year-over-year to $282.9 million, exceeding the market expectation of $275.74 million [1] Future Outlook - Duolingo's guidance for 2026 fell short of Wall Street expectations, with first-quarter revenue projected at $288.5 million, below the consensus estimate of $291.8 million [1] - The full-year revenue forecast is set between $1.2 billion and $1.22 billion, which is lower than the market expectation of $1.26 billion [1] Analyst Reactions - Following the earnings report, major institutions significantly downgraded Duolingo's ratings and target prices [1] - Canadian Imperial Bank of Commerce downgraded the rating from "Outperform" to "Market Perform" and slashed the target price to $100 from $300 [1] - JPMorgan downgraded the rating from Neutral to Underweight, reducing the target price from $200 to $95 [1]