LiveRamp Holdings Inc. (NYSE:RAMP) shares surged more than 26% in premarket trading on Monday after the company reported stronger-than-expected fourth-quarter results and announced a definitive agreement to be acquired by Publicis Groupe for $2.5 billion.
Quarterly earnings and revenue exceed expectations
The data collaboration technology company posted adjusted earnings of $0.52 per share for the fourth quarter of fiscal 2026, beating analyst forecasts of $0.49 per share.
Revenue increased 9% year-over-year to $206 million, slightly ahead of consensus estimates of $205.48 million.
Subscription revenue rose 9% to $158 million, while Marketplace & Other revenue climbed 11% to $49 million.
“We finished FY26 on a strong note, with Q4 revenue and operating income ahead of consensus and ARR growth accelerating sequentially,” chief executive Scott Howe said.
“We also achieved record operating cash flow in FY26, and returned over 100% to shareholders through buybacks.”
Margins and recurring revenue continue improving
Adjusted operating income jumped 75% to $40 million during the quarter.
Adjusted operating margin expanded by seven percentage points to 20%, while annual recurring revenue increased 8% to $545 million.
The company also reported subscription net retention of 107%, reflecting improved customer retention and expansion trends.
For the full fiscal year 2026, LiveRamp generated record operating cash flow of $168 million.
The company repurchased approximately 7.1 million shares for $194 million during the year.
LiveRamp ended the fiscal year with 133 customers generating more than $1 million in annualized subscription revenue, up from 128 customers a year earlier.
Publicis acquisition offers 30% premium
Under the acquisition agreement with Publicis Groupe, LiveRamp shareholders will receive $38.50 per share in cash.
The offer represents a premium of roughly 30% compared with the company’s closing share price on May 15.
The transaction is expected to close before the end of calendar year 2026, subject to shareholder approval and customary closing conditions.
LiveRamp Holdings stock price
