Shares of Criteo (NASDAQ: CRTO) soared on Wednesday, boosted by a strong earnings report. The digital advertising expert's stock rose as much as 23.1% in the morning, backing down to a 17.9% gain at the end of the day.
Criteo's adjusted fourth-quarter revenues rose 6% year over year, landing at $334 million. Adjusted earnings jumped 15% higher to $1.75 per diluted share. Your average Wall Street analyst would have settled for earnings near $1.37 per share on revenues in the neighborhood of $332 million.
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The company saw especially strong results in the retail media segment, with an inflow of new clients and growing network effects. In other words, Criteo's brand-building tools continued a strong growth trend that started in 2022.
Among Criteo's recent success stories is the company's partnership with Microsoft (NASDAQ: MSFT) to drive Microsoft's retail media advertising. On the earnings call, CFO Sarah Glickman described 2025 as "another spectacular year" with the Microsoft integration and other new products driving the business results higher.
After Wednesday's jump, Criteo shares have gained 72% in a year. And it still looks cheap, trading at 9.8 times forward earnings or 14 times free cash flows. It's not too late to buy into this robust growth stock.
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Anders Bylund has positions in Criteo. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends Criteo and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.