Sophie Blake
The Trade Desk reported first-quarter revenue of $689 million for 2026, marking a 12% year-over-year increase, as the demand-side platform navigates slowing growth, increased competition from Amazon’s advertising business, and ongoing tensions with major agency groups.
The company also projected second-quarter revenue of at least $750 million, reflecting an expected 8% annual increase. The forecast fell below the growth rates The Trade Desk posted in recent years, when quarterly revenue gains frequently exceeded 20%.
Investor reaction was immediate, with the company’s stock falling roughly 15% in after-hours trading following the earnings release.
The latest results arrive during a period of broader uncertainty for the independent ad tech sector. Industry analysts pointed to a combination of macroeconomic pressure, growing adoption of automated buying tools from large platforms, and increasing competition from Amazon DSP as factors weighing on sentiment around the company.
Competition from Amazon’s advertising ecosystem was highlighted as a growing challenge, particularly as Amazon expands its connected TV and full-funnel advertising capabilities.
Despite the slower growth, The Trade Desk said connected TV remains its largest business segment, accounting for more than half of platform activity according to industry estimates. Mobile advertising represents roughly a quarter of spending on the platform, while display and audio continue to make up smaller portions of the business.
During the quarter, the company expanded partnerships tied to connected TV, retail media, and data-driven buying. Executives highlighted integrations involving Netflix, LinkedIn, Dollar General, PacVue, and Skaai, alongside the rollout of new AI-powered planning tools through its Koa platform.
CEO Jeff Green said the company signed 45 joint business plans with brands in March, describing it as the strongest month on record for such agreements. According to Green, spending tied to new joint business plans increased 40% year over year during the quarter.
At the same time, The Trade Desk is continuing to face friction with major holding companies over transparency and platform governance issues. Publicis recently advised clients against using the platform after alleging failures in a third-party audit and concerns over certain feature opt-ins. Omnicom is also conducting its own audit review, while WPP and Dentsu exited The Trade Desk’s OpenPath supply-path optimization initiative earlier this year.
The earnings report also coincided with leadership changes at the company. Chief Strategy Officer Samantha Jacobson is departing for OpenAI after five years overseeing strategic investments and partnerships. Her exit follows several recent executive departures, including the company’s chief marketing officer.
Executives downplayed suggestions that agency disputes were materially affecting business performance, instead pointing to broader economic conditions as a factor behind softer guidance.
Green also defended the company’s premium pricing strategy during the earnings call, arguing that advertisers focused solely on low-cost reach risk sacrificing campaign quality. He referenced recent competitive pitches against Amazon DSP, including campaigns involving pharmaceutical advertisers, where The Trade Desk said it later regained business after clients tested lower-cost alternatives.
The broader advertising market continues to shift toward vertically integrated platforms that combine media inventory, audience data, and automated buying systems. Companies such as Amazon, Meta, and Google have expanded AI-driven campaign tools and self-serve advertising products, increasing pressure on independent DSPs whose core positioning has centered on open internet buying and transparency.
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