Today's Trend
Lightspeed Commerce Inc. (NYSE: LSPD) is under pressure today after its fiscal fourth-quarter earnings update and a wave of analyst revisions, which together point to solid revenue growth but continued profitability concerns.
- Fourth-quarter revenue rose 14.8% year over year to $290.8 million, beating estimates, and gross profit increased 15.4%, showing the business is still growing. Lightspeed Announces Fourth Quarter and Full Year 2026 Financial Results and Provides Outlook for Fiscal 2027
- The company also said cash flow from operating activities and adjusted free cash flow improved over the year, while the board renewed its share repurchase program, which can support the stock. Lightspeed Announces Fourth Quarter and Full Year 2026 Financial Results and Provides Outlook for Fiscal 2027
- Several firms lowered price targets but mostly kept neutral-to-bullish ratings: UBS cut its target to $10 from $11, Stifel to $10 from $12, RBC to $10 from $13, Morgan Stanley to $11.50 from $13.50, and Benchmark to $16 from $18. Analyst price target changes
- Despite revenue growth, Lightspeed missed earnings expectations and reported a quarterly loss, reinforcing investor concern that profitability remains weak. Lightspeed Commerce shares decline after quarterly earnings miss despite revenue growth (LSPD)
- Guidance for fiscal 2027 revenue was also viewed as only modestly below/around expectations, which may have disappointed investors looking for a stronger outlook. Lightspeed Announces Fourth Quarter and Full Year 2026 Financial Results and Provides Outlook for Fiscal 2027
Overall, Lightspeed Commerce (LSPD) looks like it is trading lower because investors are focusing more on the earnings miss, continued net losses, and cautious guidance than on the company’s solid top-line growth.