Why LiveRamp Holdings (RAMP) Is Up 9.4% After Strong Q2 Results and Upgraded Earnings Guidance

• LiveRamp Holdings reported strong second quarter 2026 results, with revenue rising to US$199.83 million and net income to US$27.42 million, alongside further share buybacks and increased earnings guidance for the next quarter and fiscal year.
• The company's rollout of a usage-based pricing model and several multi-million dollar client wins, including a deal with a global auto manufacturer and upsell to a major social media platform, highlight expanding commercial momentum and broader market reach.
• We’ll explore how LiveRamp’s better-than-expected profitability and updated guidance may strengthen the company’s investment outlook and growth narrative.

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LiveRamp Holdings Investment Narrative Recap

To own LiveRamp Holdings, an investor needs to believe in the company's ability to expand its market share as a leading data connectivity enabler, especially as digital advertising becomes more complex and data privacy rules tighten. The latest earnings release, with higher revenue and updated guidance, reinforces confidence in the company's short-term catalyst, successful adoption of its usage-based pricing model. However, the biggest risk remains LiveRamp's revenue concentration among a few large clients, making it vulnerable to customer churn; the Q2 results do not materially change this risk profile.

Among the recent announcements, LiveRamp's updated revenue and profit guidance for the third quarter and fiscal year 2026 is especially relevant, as it underpins expectations for continued growth fueled by new client wins and the rollout of usage-based pricing. These developments directly address the main short-term catalyst of increasing commercial momentum, though investors must recognize that significant client losses could still pose a challenge to sustainable growth. The ongoing concentration risk among a handful of major clients is something investors should be aware of, as even with positive guidance, the potential for sudden revenue impacts remains...

Read the full narrative on LiveRamp Holdings (it's free!)

LiveRamp Holdings' outlook anticipates $969.7 million in revenue and $154.0 million in earnings by 2028. This relies on 8.3% annual revenue growth and a $141.3 million increase in earnings from the current $12.7 million level.

Uncover how LiveRamp Holdings' forecasts yield a $39.62 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Five community members on Simply Wall St have published fair value estimates for LiveRamp Holdings, spanning US$28 to nearly US$49 per share. While some see substantial upside, ongoing reliance on large enterprise clients increases vulnerability to revenue risk if customer churn accelerates. Explore these varied viewpoints to see how others are weighing these issues.

Explore 5 other fair value estimates on LiveRamp Holdings - why the stock might be worth 6% less than the current price!

Build Your Own LiveRamp Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your LiveRamp Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free LiveRamp Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate LiveRamp Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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