LiveRamp 2026 Q2 Earnings Beats Expectations with 1300% EPS Surge and 7.7% Revenue Growth

LiveRamp (RAMP) delivered robust Q2 2026 results, exceeding revenue estimates and raising full-year guidance. The company’s 7.7% revenue growth to $199.83 million and 1300% EPS increase to $0.42 signaled strong operational execution. CEO Scott Howe highlighted outperformance in ARR and strategic AI investments, while analysts noted the stock’s 8.3% post-earnings rally reflected optimism about forward momentum.

Revenue

LiveRamp’s total revenue rose 7.7% year-over-year to $199.83 million in Q2 2026, driven by sustained demand for its Data Collaboration Network. Subscription revenue, the company’s core offering, contributed $150.04 million, reflecting steady adoption of its platform. Marketplace and Other revenue added $49.79 million, fueled by cross-industry partnerships and commerce media growth. The performance underscored the company’s ability to capitalize on AI-driven advertising and first-party data activation trends.

Earnings/Net Income

LiveRamp’s EPS surged 1300% to $0.42 in Q2 2026, compared to $0.03 in the prior year, while net income expanded 1483.1% to $27.42 million. The dramatic improvement in profitability highlighted cost efficiencies and successful monetization of AI tools. This earnings acceleration, coupled with strong revenue growth, positioned LiveRamp as a standout performer in the data collaboration sector.

Price Action

LiveRamp’s stock price gained 0.86% during the latest trading day, 7.03% for the week, and 7.50% month-to-date.

Post-Earnings Price Action Review

The market’s positive reaction to LiveRamp’s Q2 results reflected confidence in its strategic direction and execution. A 8.3% intraday rally followed the earnings release, driven by the company’s outperformance of revenue and EPS estimates and an upgraded full-year guidance. While the stock’s 7.50% monthly gain indicated broader investor optimism, analysts noted that the move aligned with historical volatility patterns, suggesting the news was impactful but not transformative. The rally also coincided with renewed AI sector momentum, as highlighted by broader market gains in technology stocks.

CEO Commentary

CEO Scott Howe emphasized Q2’s 7% sequential ARR growth—the largest in seven quarters—and expanding demand for AI-powered tools like agentic orchestration and audience segmentation. Strategic priorities include scaling first-party data solutions globally and refining usage-based pricing models. The leadership’s confidence in AI-driven growth and cross-media measurement capabilities reinforced a bullish outlook for the company’s long-term trajectory.

Guidance

LiveRamp projected Q3 2026 revenue of $209–213 million (7–9% YoY growth), with non-GAAP operating income of $55–57 million. For fiscal 2026, revenue guidance was raised to $804–818 million (8–10% YoY growth), with non-GAAP operating income of $178–182 million. The updated targets excluded non-cash expenses, reflecting a focus on core operational performance.

Additional News

LiveRamp announced a usage-based pricing model pilot, which early feedback suggests could drive incremental revenue. The company also secured multi-million-dollar contracts with a global automaker and a major social media platform, underscoring its market penetration. However, gross margin pressures persisted at 72%, down 3 points year-over-year, due to platform modernization costs. Management emphasized that these challenges were temporary, with cost optimization expected to improve margins in the long term.

LiveRamp’s strategic focus on AI and first-party data, combined with its ability to secure high-value contracts, positions it to benefit from the ongoing digital ad transformation. While near-term margin headwinds remain, the company’s guidance and pricing innovations signal a path to sustainable growth. Investors are advised to monitor the rollout of its usage-based model and the impact of macroeconomic uncertainties on client spending.