What is KeyCorp’s Forecast for Reddit Q2 Earnings?

Reddit Inc. (NYSE:RDDT) – Equities research analysts at KeyCorp issued their Q2 2026 earnings per share (EPS) estimates for Reddit in a note issued to investors on Tuesday, July 28th. KeyCorp analyst J. Patterson anticipates that the company will post earnings of $0.91 per share for the quarter. KeyCorp currently has a “Strong-Buy” rating on the stock. The consensus estimate for Reddit’s current full-year earnings is $5.03 per share. KeyCorp also issued estimates for Reddit’s Q3 2026 earnings at $1.23 EPS, Q4 2026 earnings at $1.74 EPS, FY2026 earnings at $4.90 EPS, FY2027 earnings at $6.92 EPS and FY2028 earnings at $8.73 EPS.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. The company had revenue of $804.91 million for the quarter, compared to the consensus estimate of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.Reddit’s revenue was up 61.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.45 earnings per share.

Other equities analysts have also recently issued research reports about the stock. Truist Financial increased their price objective on shares of Reddit from $265.00 to $275.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. DA Davidson restated a “buy” rating and set a $200.00 target price on shares of Reddit in a research report on Thursday, July 23rd. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $200.00 target price on shares of Reddit in a report on Friday, May 1st. Sanford C. Bernstein reiterated a “market perform” rating and issued a $180.00 price target on shares of Reddit in a research report on Friday. Finally, Zacks Research upgraded shares of Reddit from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 27th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Reddit currently has a consensus rating of “Moderate Buy” and a consensus target price of $220.90.

Reddit Stock Up 3.4%

Reddit stock opened at $159.93 on Monday. The business has a 50-day simple moving average of $177.29 and a two-hundred day simple moving average of $162.98. The company has a market cap of $30.79 billion, a P/E ratio of 37.19, a P/E/G ratio of 0.54 and a beta of 2.03. Reddit has a 52-week low of $119.27 and a 52-week high of $282.95.

Hedge Funds Weigh In On Reddit

A number of hedge funds have recently made changes to their positions in RDDT. Vanguard Group Inc. raised its stake in Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares during the period. Capital World Investors bought a new position in Reddit in the 4th quarter worth approximately $1,293,258,000. State Street Corp grew its holdings in Reddit by 6.0% during the 4th quarter. State Street Corp now owns 2,631,332 shares of the company’s stock valued at $604,864,000 after buying an additional 149,401 shares in the last quarter. Geode Capital Management LLC grew its holdings in Reddit by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock valued at $546,789,000 after buying an additional 106,821 shares in the last quarter. Finally, Morgan Stanley grew its holdings in Reddit by 11.4% during the 4th quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock valued at $545,354,000 after buying an additional 242,709 shares in the last quarter.

Insider Transactions at Reddit

In other news, COO Jennifer L. Wong sold 39,166 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the sale, the chief operating officer directly owned 1,050,339 shares in the company, valued at $185,846,982.66. This trade represents a 3.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $64,718,417.82. This trade represents a 4.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 151,141 shares of company stock valued at $25,588,445 over the last three months. Corporate insiders own 28.48% of the company’s stock.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong Q2 results and outlook support the rebound. Reddit reported revenue of $804.9 million, up 61% year over year, and EPS of $1.25, beating estimates of $731 million and $0.95, respectively. Advertising revenue rose 64%, while management’s Q3 revenue and adjusted EBITDA guidance of $860 million–$870 million and $385 million–$395 million exceeded consensus expectations. Reddit Q2 review
• Positive Sentiment: Improving monetization and cash flow are attracting buyers. Global daily active unique users reached 130.3 million, and Reddit generated more than $1 billion in trailing-12-month operating cash flow. Analysts highlighted a 24% increase in U.S. average revenue per user, suggesting stronger monetization can offset slower user growth. Reddit valuation and free cash flow analysis
• Positive Sentiment: Reddit continues advancing its digital advertising strategy. Coverage points to expanding advertising tools and stronger monetization of highly engaged users as potential long-term growth drivers. Reddit digital advertising strategy
• Neutral Sentiment: Analyst views remain broadly constructive but targets are mixed. Some firms lowered targets, including Cantor Fitzgerald to $170 and Wedbush to $221, while another analyst raised its target to $275. The differing estimates reflect strong fundamentals but uncertainty about user growth and search traffic. Cantor Fitzgerald target change Reddit price target increase
• Negative Sentiment: Flat U.S. logged-in user growth remains the principal concern. U.S. daily active users declined slightly quarter over quarter to 53.2 million, while logged-in users fell to 23.1 million from 23.2 million. Investors are questioning whether monetization gains can continue if engagement growth stagnates, particularly as Reddit stops separately reporting logged-in and logged-out users. Reddit U.S. user growth concerns
• Negative Sentiment: Search-referral volatility and legal scrutiny add risk. Investors remain concerned that changes in search traffic could reduce Reddit’s less-engaged audience. Separately, Bragar Eagel & Squire announced an investigation on behalf of long-term shareholders, which could create additional reputational and legal overhang, although no wrongdoing has been established. Reddit shareholder investigation

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.