Is YEXT's Q1 2026 forecast signaling a strong start?
4/11/2025 08:48pm
**Yext's Q1 2026 forecast does not indicate a strong start** for several reasons:
1. **Earnings Projection**: B. Riley, a research analyst, has significantly reduced its Q1 2026 EPS estimate for Yext from $0.06 to $0.01. This downward revision suggests a lack of confidence in the company's performance for the upcoming quarter.
2. **Revenue Guidance**: The company's revenue guidance for Q1 2026 is $107.3 million to $107.8 million, which is below the consensus revenue estimate of $109.4 million. This indicates that analysts are expecting lower-than-expected revenue, which is not a sign of a strong start.
3. **Full-Year Guidance**: While Yext updated its FY 2026 guidance to $0.500-0.530 EPS, which is slightly above the consensus estimate of $0.540, the Q1 projections do not bode well for a strong start to the year.
4. **Historical Performance**: Yext has a history of missing earnings expectations, with a recent quarter reporting an EPS of $0.06, which missed the consensus estimate of $0.14. This trend of underperformance makes it challenging to anticipate a strong start to the year.
5. **Market Sentiment**: The stock has experienced a decline and has a negative net margin of 4.64% and a negative return on equity of 11.10%, which reflects broader market concerns and operational challenges.
In conclusion, the Q1 2026 forecast for Yext does not signal a strong start, considering the earnings projection, revenue guidance, and historical performance indicators.