Roblox Corporation (NYSE:RBLX) saw its shares rise significantly on Friday in response to its recently released fourth-quarter earnings report, which surpassed market expectations across several key financial metrics. The company also provided sales guidance for the first quarter and the full year 2026 that exceeded Wall Street forecasts, fueling a positive market reaction.
In the fourth quarter, Roblox reported a loss per share of 45 cents, a narrower deficit compared to the anticipated loss of 48 cents per share. Revenue surged impressively, showing an increase of $860 million compared to the same quarter from the previous year, underscoring a sustained strength in user engagement on the platform and increased spending activity.
Looking ahead, the company projects first-quarter sales ranging between $1.69 billion and $1.74 billion, which notably exceeds the analyst consensus estimate of $1.677 billion. Moreover, Roblox forecasted 2026 full-year revenue between $8.282 billion and $8.553 billion, well above the $7.871 billion anticipated by equity analysts.
This ongoing trend reflects a disciplined execution capacity for Roblox, which has consistently exceeded earnings expectations across the last four quarters. For instance, in the previous quarter, the company outperformed earnings per share (EPS) estimates by 15 cents, a development that triggered a modest increase in share price. Additionally, in the third quarter of 2025, Roblox reported revenue of $1.92 billion, significantly surpassing the $1.70 billion expected, while posting a loss of 37 cents per share, better than the forecasted 52 cents loss.
Analysts have responded favorably to these results and forward guidance, issuing various ratings that range predominantly between 'Overweight' and 'Buy'. Piper Sandler recently affirmed an Overweight rating with a price target adjustment downward to $100 from a previous $125. Morgan Stanley maintained its Overweight stance but revised the target price down to $140 from $155. Wedbush reiterated an Outperform rating, assigning a $110 target, while Needham retained a Buy rating despite reducing the target from $159 to $105. BTIG also upheld its Buy rating with a $141 price target. These mixed adjustments in price targets alongside maintained positive recommendations suggest sustained confidence in Roblox's growth trajectory despite moderations in valuation expectations.
On market performance, Roblox shares climbed approximately 7.31% to $65.00 during Friday's trading session, reflecting investor optimism following the earnings announcement. The vibrant momentum is further supported by dynamic market conditions that have created opportunities for rapid trading, as highlighted by commentary on short-term trade setups capitalizing on market volatility.
In summary, Roblox’s financial performance, characterized by top-line growth and managed losses, together with its optimistic sales outlook, underscores a narrative of resilience and growth potential. The company’s ability to consistently beat earnings estimates, coupled with positive analyst sentiments, continues to support a favorable market perception. However, investors should remain attentive to factors that may influence the company’s operational and financial execution moving forward.