Criteo (NASDAQ:CRTO) Issues Earnings Results

Criteo (NASDAQ:CRTO) released its quarterly earnings data on Wednesday. The information services provider reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.08, Briefing.com reports. Criteo had a net margin of 6.06% and a return on equity of 14.98%. The firm had revenue of $428.02 million for the quarter, compared to analysts’ expectations of $263.57 million. During the same quarter last year, the business posted $0.92 earnings per share. The company’s revenue for the quarter was down 11.3% compared to the same quarter last year.

Here are the key takeaways from Criteo’s conference call:

• Q2 missed expectations as several large enterprise Performance Media clients reduced spending, leading to a 12% constant-currency decline in Contribution ex-TAC and a revised 2026 outlook for a 10%–12% decline.
• Management now assumes no recovery from affected enterprise clients through year-end and expects Q3 Contribution ex-TAC of $237 million–$241 million, down 14%–15% year over year; adjusted EBITDA margin guidance was reduced to approximately 30% for 2026.
• The OpenAI partnership is scaling rapidly, with more than 2,000 brands now running campaigns and ChatGPT traffic converting at roughly 1.5–2 times the rate of traditional referral traffic; management expects OpenAI and broader agentic-AI initiatives to become meaningful growth drivers in 2027.
• Underlying Retail Media Contribution ex-TAC grew 20% excluding previously announced client scope reductions, while retail media spend rose 31% and Auction-Based Display expanded to more than 85 retailers globally.
• Cost discipline supported $73 million of Q2 adjusted EBITDA despite weaker revenue, and Criteo ended the quarter with no long-term debt, $180 million in trailing-12-month free cash flow, and $160 million remaining under its share-repurchase authorization.

Criteo Stock Up 3.1%

Criteo stock traded up $0.53 during mid-day trading on Thursday, reaching $17.58. 731,497 shares of the company’s stock traded hands, compared to its average volume of 459,352. Criteo has a 12-month low of $15.57 and a 12-month high of $25.29. The stock has a 50 day moving average of $19.71 and a two-hundred day moving average of $18.77. The company has a market cap of $883.22 million, a price-to-earnings ratio of 8.21 and a beta of 0.29.

Key Headlines Impacting Criteo

Here are the key news stories impacting Criteo this week:

• Positive Sentiment: Criteo reported second-quarter adjusted EPS of $0.80, exceeding the $0.72 consensus estimate, while revenue of $428.0 million also surpassed analyst expectations. The company deployed $30 million for share repurchases during the quarter. Criteo Reports Second Quarter 2026 Results
• Positive Sentiment: Benchmark lowered its price target from $25 to $21 but maintained a Buy rating, implying meaningful potential upside from current levels. Benzinga analyst update
• Positive Sentiment: The company highlighted momentum in artificial-intelligence initiatives, and it appointed Connor McGogney as chief financial officer effective August 10. Criteo also plans to cancel 4.5 million treasury shares, reducing share capital and potentially supporting per-share value.
• Neutral Sentiment: Criteo announced a planned cross-border merger into a U.S. holding company. The transaction may simplify the corporate structure, but its immediate financial impact remains unclear. Criteo Plans Cross-Border Merger Into U.S. Holding Company
• Negative Sentiment: Management issued a weak outlook: third-quarter revenue is projected at $237 million-$241 million versus the $279.6 million consensus, while full-year revenue guidance of $1.0 billion-$1.1 billion is roughly in line with or below expectations. Criteo Forecasts 2026 Contribution to Decline
• Negative Sentiment: The company expects 2026 contribution ex-TAC to decline 10%-12% because it is not assuming a recovery in spending by large clients. This overshadowed the quarterly earnings beat and contributed to the cautious market reaction. Criteo Weak Outlook Overshadows Earnings Beat
• Negative Sentiment: Morgan Stanley cut its price target from $29 to $25 and moved to an Equal Weight rating. Although the revised target still indicates upside, the downgrade reflects concern about slower growth. The Fly analyst update

Wall Street Analysts Forecast Growth

CRTO has been the topic of a number of research reports. BMO Capital Markets set a $20.00 price target on shares of Criteo in a report on Thursday. Weiss Ratings restated a “sell (d+)” rating on shares of Criteo in a research report on Friday, July 17th. Citigroup reaffirmed a “buy” rating on shares of Criteo in a report on Tuesday, July 7th. Wedbush started coverage on Criteo in a research report on Thursday, July 16th. They issued an “outperform” rating and a $30.00 target price on the stock. Finally, Benchmark dropped their price target on Criteo from $25.00 to $21.00 and set a “buy” rating for the company in a research note on Thursday. Six investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Criteo presently has an average rating of “Hold” and an average target price of $23.15.

Insider Activity at Criteo

In other news, CFO Sarah Js Glickman sold 2,465 shares of the business’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $17.06, for a total value of $42,052.90. Following the sale, the chief financial officer directly owned 431,879 shares in the company, valued at $7,367,855.74. The trade was a 0.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.52% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. bought a new stake in Criteo during the second quarter worth approximately $30,000. Jones Financial Companies Lllp lifted its stake in shares of Criteo by 1,376.7% in the 1st quarter. Jones Financial Companies Lllp now owns 1,270 shares of the information services provider’s stock valued at $45,000 after purchasing an additional 1,184 shares during the last quarter. Parallel Advisors LLC boosted its holdings in shares of Criteo by 142.3% in the 3rd quarter. Parallel Advisors LLC now owns 2,081 shares of the information services provider’s stock worth $47,000 after purchasing an additional 1,222 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in shares of Criteo by 41.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 8,587 shares of the information services provider’s stock worth $206,000 after purchasing an additional 2,524 shares during the period. Finally, ExodusPoint Capital Management LP bought a new position in shares of Criteo during the 4th quarter valued at approximately $215,000. Hedge funds and other institutional investors own 94.27% of the company’s stock.

About Criteo

Criteo is a global technology company specializing in digital performance advertising and commerce media solutions. The company provides a range of AI-driven ad products designed to help brands, retailers, and agencies deliver personalized promotional messages to consumers across web, mobile, and connected TV environments. By leveraging large-scale data analytics and machine learning algorithms, Criteo’s platform optimizes the timing, placement, and creative of ads to drive engagement and conversions.

At the core of Criteo’s offering is its dynamic retargeting solution, which enables advertisers to automatically generate and display personalized product recommendations based on user behavior.