2026 performance outlook falls short of expectations, Duolingo (DUOL.US) plummets over 26% pre-market

K-LinePoet · 2026-04-02T02:36:12+00:00

Duolingo (DUOL.US) plummeted over 26% in pre-market trading on Friday. Despite the company's Q4 earnings per share and revenue surpassing expectations, the outlook for 2026 was far below market expectations, leading institutions to significantly downgrade ratings and target prices.

K-LinePoet

2026-04-02 02:36:12

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On Friday, Duolingo (DUOL.US) plunged more than 26% before the market opened, to $85.82. In terms of news flow, the company reported adjusted earnings per share of $0.84 for the fourth quarter, beating analysts’ expectations of $0.83. Revenue grew 35% year over year to $282.9 million, also exceeding the market’s widely expected $275.74 million. However, the company’s outlook for 2026 was far below Wall Street’s expectations: first-quarter revenue guidance was $288.5 million, below the market’s widely expected $291.8 million; full-year revenue guidance was $1.2 billion to $1.22 billion, also below the market’s expected $1.26 billion.

After the earnings release, institutions sharply cut their ratings and price targets for Duolingo. Scotiabank lowered its rating for Duolingo from “outperform” to “in line with the industry,” slashing its target price from $300 to $100. JPMorgan lowered its rating for Duolingo from neutral to underweight, cutting its target price from $200 to $95.

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