The Trade Desk, Inc. (TTD) AI Stock Analysis
TTD AI stock analysis summary
AI ResearchThe Trade Desk, Inc. provides a self-service cloud-based platform for buyers to manage and optimize digital advertising campaigns. Over the trailing twelve months, the company generated $2.99B in revenue with an operating margin of 14.2%. However, the stock has declined 75.5% over the past year as quarterly earnings fell 23.6% in the latest quarter.
- Market cap
- $5.78B
- Revenue (TTM)
- $2.99B
- P/E
- 14.7x fwd 13.9x
- 1Y return
- -75.5% S&P 500 16.8%
- Avg. target
- $13.53 10.7% vs last close
Bull case
- The Trade Desk achieved a 5-year revenue CAGR of 28.2% from FY2020 to FY2025, driving annual revenue to $2.90B.
- The company holds a strong balance sheet with $1.05B in net cash and a debt-to-equity ratio of 0.17 as of June 30, 2026.
- Free cash flow reached $795.7M in FY2025, while operating margin expanded to 20.3%.
Bear case
- The stock has dropped 75.5% over the past year, significantly underperforming the S&P 500 return of 16.8%.
- For the quarter ended June 30, 2026, quarterly earnings fell 23.6% year-over-year as revenue growth slowed to 3.0%.
- Analysts forecast an EPS decline of 34.6% for FY2026 to $1.16, followed by a further 13.5% decline in FY2027 to $1.00.
What Trade Desk does
The Trade Desk, Inc. is a technology company headquartered in Ventura, California, operating across the United States and global markets. The firm operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns. Its platform supports multiple ad formats and channels, including display, video, audio, native, and social media across computers, mobile devices, and connected TVs. Trade Desk also provides data insights and other value-added services to boost client return on investment. The company primarily serves advertising agencies and other service providers.
Growth and profitability
Annual revenue expanded from $1.20B in FY2021 to $2.90B in FY2025, reflecting a 5-year compound annual growth rate of 28.2% from FY2020. Annual net income grew from $137.8M in FY2021 to $443.3M in FY2025, alongside an increase in operating margin from 10.4% to 20.3%. Free cash flow reached $795.7M in FY2025, up from $318.5M in FY2021. For the trailing twelve months ended June 30, 2026, revenue stood at $2.99B with a profit margin of 13.6%. In the latest quarter, revenue grew 3.0% year-over-year, while quarterly earnings declined 23.6%.
Balance sheet and cash flow
As of June 30, 2026, The Trade Desk maintained $1.49B in cash and short-term investments against $434.1M in total debt, yielding net cash of $1.05B. Shareholders' equity was $2.57B, supporting a debt-to-equity ratio of 0.17 and a current ratio of 1.72. Operating cash flow totaled $992.7M in FY2025, while capital expenditures were $197.0M. During FY2025, the company spent $1.38B on share buybacks, contributing to a 5-year share count change of -6.1%.
Valuation and performance
At a closing price of $12.23, The Trade Desk has a market capitalization of $5.78B and an enterprise value of $4.94B. The stock trades at a trailing P/E of 14.7x and a forward P/E of 13.9x, both below the median of its US-listed Communication Services peers at 16.2x and 14.1x, respectively. Its enterprise value-to-EBITDA multiple is 6.9x versus the peer median of 10.0x. Over the past year, the stock dropped 75.5%, trailing the S&P 500 return of 16.8%.
What analysts expect
Wall Street analyst sentiment includes 4 Strong Buy, 1 Buy, 23 Hold, 3 Sell, and 5 Strong Sell recommendations. The consensus mean price target of $13.53 represents an implied upside of 10.7% from the last close of $12.23. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $2.75B and EPS of $1.16, marking a 34.6% drop in EPS. The company beat EPS estimates in 3 of the last 4 quarters and is scheduled to report earnings next on November 5, 2026.
Key risks and what to watch
- Short interest is elevated, with short percent of float standing at 22.4%.
- Revenue is projected to contract 5.4% to $2.60B in the next fiscal year.
- Quarterly revenue growth slowed to 3.0% in the latest quarter, below the peer median growth rate of 4.0%.
- The stock trades 42.7% below its 200-day moving average and remains near its 52-week low of $11.62.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this TTD AI stock analysis
This page is an AI-written research summary of The Trade Desk, Inc. (TTD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: TTD income statement, TTD balance sheet, TTD key metrics, TTD analyst forecast, TTD chart. See the TTD stock overview for the latest quote and news.
TTD AI stock analysis FAQ
What is The Trade Desk's current valuation?
The Trade Desk trades at a trailing P/E of 14.7x, a forward P/E of 13.9x, and an EV/EBITDA of 6.9x, compared to US-listed Communication Services peer medians of 16.2x, 14.1x, and 10.0x, respectively.
Does The Trade Desk pay a dividend?
The Trade Desk does not pay a dividend. In FY2025, the company deployed capital toward $1.38B in share buybacks.
What are analysts expecting for The Trade Desk's earnings?
For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.16, representing a 34.6% decline. For the next fiscal year, analysts project EPS of $1.00 on revenue of $2.60B.
How strong is The Trade Desk's balance sheet?
As of June 30, 2026, the company held $1.49B in cash and short-term investments against $434.1M in total debt, giving it $1.05B in net cash and a current ratio of 1.72.