Roku Inc's stock surged 7.40% in after-hours trading following the release of its first-quarter financial results. The streaming platform provider reported a significant return to profitability and revenue growth that exceeded analyst expectations.

The company swung to a net income of $86 million in Q1 FY26, compared to a loss in the prior period, with revenue rising 22% year-over-year to $1.25 billion. Roku's earnings per share of $0.57 substantially beat the consensus estimate of $0.31, while revenue exceeded the $1.204 billion expectation. Platform revenue grew 28% to $1.13 billion, driven by advertising revenue increasing 27% to $613 million and subscription revenue climbing 30% to $519 million.

Roku raised its annual platform revenue forecast to $5 billion, representing 21% growth compared to its prior projection of $4.89 billion. The company also provided Q2 revenue guidance of approximately $1.3 billion and forecast adjusted EBITDA of $170 million. Analyst commentary from Wedbush indicated confidence in Roku's ability to exceed its revenue growth guidance, contributing to positive investor sentiment.