Aug. 6 at 8:13 PM
Etsy shares fell Thursday despite reporting better-than-expected Q2 results, as investors focused on the company's restructuring plan and questioned whether its strong year-to-date rally could continue. Adjusted EPS came in at
$0.98, well above the
$0.73 consensus, while revenue rose to
$668.3 million, beating estimates of about
$644.6 million. Shares nevertheless opened sharply lower after Wednesday's earnings release.
The company announced it will eliminate about 220 jobs, or roughly 12% of its workforce, primarily in product and engineering, as part of a restructuring expected to result in about
$35 million in charges during Q3 2026. CEO Kruti Patel Goyal said the move is intended to streamline operations and accelerate innovation rather than simply reduce costs.
Analyst reaction was mixed. Canaccord raised its price target to
$92 while maintaining a Buy rating, whereas Evercore ISI lifted its target to
$83 and kept an In Line rating.
$ETSY