Why Did ROKU Stock Surge 9% Today?

• The company reported an operating income of $9.5 million in the third quarter, representing a 126% year-over-year (YoY) increase.
• Both Q3 revenue and EPS exceeded the analysts’ consensus estimate.
• Roku has raised its 2025 forecast for platform revenue to $4.11 billion, up from the previous guidance of $4.075 billion.  

Roku Inc. (ROKU) stock reached a 3.5-year high on Friday after achieving positive operating income for the first time since 2021 and delivering stronger-than-expected third-quarter (Q3) results. 

The company reported an operating income of $9.5 million in Q3, representing a 126% year-over-year (YoY) increase.

Roku’s stock pared some of the gains at the time of writing and traded over 9% higher. On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume jumped to ‘extremely high’ from ‘normal’ levels in 24 hours. 

The stock experienced a 685% surge in user message count as of Friday morning. A bullish Stocktwits user lauded the operating income result.

Q3 Highlights 

Total net revenue for the quarter reached $1.21 billion, marking a 14% YoY increase, and earnings per share (EPS) came in at $0.16. Both revenue and EPS exceeded the analysts’ consensus estimate of $1.2 billion and $0.08, respectively, according to FiscalAI data. 

The company’s platform revenue climbed 17% YoY, fueled by growing advertising demand and streaming distribution gains. Meanwhile, user engagement reached new highs, with total streaming hours increasing to 36.5 billion, a 4.5 billion-hour rise from the prior year. The Roku Channel remained the second most-used app on its platform in the U.S.

Outlook And Price Target Hikes 

Roku has raised its 2025 forecast for platform revenue to $4.11 billion, up from the previous guidance of $4.075 billion.  

Morgan Stanley and Wells Fargo have raised their price targets on Roku, citing improved platform revenue trends driven by growing streaming subscriptions and a strong connected TV (CTV) advertising market, according to TheFly. 

Morgan Stanley increased its price target to $85 from $80 but maintained an ‘Underweight’ rating, while Wells Fargo boosted its target to $116 from $113 and reiterated an ‘Overweight’ rating. 

Roku stock has gained over 47% in 2025 and over 71% in the last 12 months. 

Also See: What’s Fueling The Big Rally In HKD Stock Today?

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