LiveRamp (RAMP) stock surged by more than 20% today after the company reported strong fourth-quarter and full-year fiscal 2025 results that exceeded Wall Street expectations. The data connectivity platform operator posted a 10% year-over-year increase in Q4 revenue, reaching $189 million, and delivered adjusted earnings per share of $0.30, both figures topping analyst forecasts.
The company also reported a 46% year-over-year rise in operating cash flow for the fiscal year, further boosting investor confidence.
Analysts and investors responded positively to LiveRamp’s robust performance, with several Wall Street firms raising their price targets. Notably, Benchmark increased its target to $48, citing the company’s exceptional quarter and strong growth in annual recurring revenue and remaining performance obligations.
Wells Fargo also raised its price target, highlighting that LiveRamp’s fiscal 2026 revenue guidance came in above expectations at the high end.
Key drivers behind the surge include LiveRamp’s consistent revenue growth, improved operating margins, and record free cash flow. The company added new high-value customers, particularly in the financial services sector, and demonstrated resilience in renewing major contracts.
Management emphasized ongoing investments in platform modernization and new product offerings, such as cross-media intelligence solutions, which are expected to support future growth.
Despite some challenges—such as longer deal cycles and a decrease in subscription net retention due to lower political ad spend—LiveRamp’s strong results and prudent guidance reassured the market. The company’s outlook for fiscal 2026 projects revenue growth of 6-10%, with further margin expansion and a continued focus on operational efficiency.
The combination of a positive earnings surprise, optimistic guidance, and analyst upgrades fueled a sharp rally in LiveRamp shares, reflecting renewed investor optimism about the company’s long-term growth trajectory and sector leadership.
