PubMatic (PUBM) tops Q1 revenue estimates, issues stronger Q2 outlook

PubMatic (NASDAQ: PUBM) reported first-quarter 2026 revenue above Wall Street expectations and issued a stronger-than-expected second-quarter outlook, signaling that AI-driven products and customer diversification are helping offset pressure from legacy demand-side platform partners. Revenue fell 2% year over year to $62.57 million but beat analyst estimates. The company posted a non-GAAP loss of $0.11 per share, 31.3% better than consensus. PubMatic guided for second-quarter revenue of $69 million at the midpoint, 3.2% above expectations. Management cited adoption of its AI-powered AgenticOS platform, growth in connected TV and mobile app advertising, and broader mid-market DSP partnerships. CEO Rajeev Goel said more than 1,000 AI-powered deals have been transacted. CFO Steve Pantelick said the company expects revenue and margin expansion in the second half of 2026 as it laps prior DSP-related headwinds. PubMatic shares recently traded at $10.05, down from $10.24 before the earnings release.