Reddit Beats Q3 2026 Expectations but Issues Weak Q4 Revenue Guidance
Reddit said third-quarter 2026 revenue and earnings surpassed analyst expectations, while its fourth-quarter revenue guidance fell short of market forecasts. Management projected a lower-double-digit percentage decline in traffic, citing a significant reduction in Google search referrals.
Reddit announced its third-quarter 2026 financial results, reporting revenue and earnings that surpassed analyst expectations. Despite the quarterly beat, the company issued fourth-quarter revenue guidance that fell short of market forecasts. Management warned of a projected lower-double-digit percentage decline in traffic, citing a significant reduction in Google search referrals. Analysts noted that the shift toward AI-enabled search answers is impacting the platform's ability to drive user traffic, leading to a downgrade of the stock by some firms.