Canopy Growth Plunges 13.45% on Disappointing Q4 Earnings

Canopy Growth's stock price plummeted by 13.45% in pre-market trading on May 30, 2025, marking a significant downturn for the cannabis company.

Canopy Growth reported disappointing financial results for the fourth quarter of 2025, with a larger-than-expected loss and revenue falling short of forecasts. The company's GAAP EPS loss was -C$1.43, missing market expectations by C$0.88. Revenue declined by 10.7% year-over-year, totaling C$65.03 million, which was C$5.54 million below analysts' estimates. In response, Canopy Growth has initiated new cost-reduction plans targeting annual savings of at least C$20 million.

Despite the recent setbacks, analysts remain optimistic about Canopy Growth's future prospects. The average price target for the stock is $4.77, suggesting a potential upside of 179.07% from the current stock price of $1.71. Brokerage firms have collectively provided an average recommendation of 3.3 for Canopy Growth, placing it in "Hold" territory. The ratings scale extends from 1 (Strong Buy) to 5 (Sell), reflecting a cautious market stance.