Citi comments on Roku (ROKU.US) Q3 earnings: Results are good, but with the Fox acquisition looming, the stock price is unlikely to stir.

Citi issued a report stating that streaming platform Roku (ROKU.US) maintained strong platform growth and profitability in Q3 2026, with total revenue and adjusted EBITDA both exceeding market consensus. Citi maintains a "Neutral" rating on Roku with a price target of $157. Data shows that Roku's Q3 total revenue reached $1.502 billion, 11% above market consensus; total gross profit reached $647 million, 4% above consensus; adjusted EBITDA reached $249 million, 50% above the consensus estimate of $166 million, and more than double the $117 million in the same period of 2025. By segment, platform business revenue came in 2% above consensus and gross profit 5% above consensus, demonstrating strong profitability. Devices business revenue reached $194 million, significantly beating the consensus estimate of $135 million by 43%; however, gross profit for this segment was -$49 million, versus a consensus estimate of -$40 million. Citi specifically mentioned in the research report the pending acquisition of Roku by Fox (FOX.US). Citi's analysis suggests that given the Fox acquisition is underway, Roku's stock price is expected to react modestly to this earnings report; however, this could provide a slight positive boost to Fox's equity value.