Lightspeed Gears Up to Report Q3 Earnings: What's in the Offing?

Lightspeed Commerce LSPD is scheduled to release its third-quarter fiscal 2026 results on Feb. 5.

The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 12 cents per share, unchanged over the past 30 days. 

The consensus mark for revenues is pegged at $311.63 million, indicating a 11.25% increase from the year-ago quarter’s reported figure.

LSPD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 17.86%.

Let us see how things are shaping up for the upcoming announcement.

Lightspeed Commerce Inc. Price and EPS Surprise

Lightspeed Commerce Inc. price-eps-surprise | Lightspeed Commerce Inc. Quote

Factors to Consider

Lightspeed Commerce’s fiscal third-quarter performance is expected to have benefited from several positive operating trends, as the company continues executing its strategic transformation. The expanded outbound sales organization is anticipated to drive continued location additions in target verticals. Software average revenue per user is likely supported by ongoing module attachment and a growing mix of larger, higher-value customers.

Transaction-based revenue growth is expected to benefit from sustained payments penetration gains, particularly in international markets where adoption rates remain below North American levels. The introduction of Tempo in late November, a pacing intelligence solution for restaurant operators, is anticipated to enhance the value proposition in European hospitality by addressing operational efficiency around table management and service delivery. North American retail momentum during the holiday shopping season is expected to provide additional support to gross transaction value.

However, meaningful headwinds are expected to temper results. European hospitality and golf operations typically experience reduced activity during winter months, creating seasonal weakness that is anticipated to weigh on the quarter's performance. Gross transaction value and same-store sales are likely to face pressure from reduced customer traffic in these segments. Software revenue growth is expected to moderate as the company cycles through price increases implemented in the prior year, removing a tailwind that supported earlier quarters. Geographic and vertical mix shifts toward less seasonally favorable segments are likely to pressure overall growth rates compared to the robust fiscal second quarter that benefited from peak European hospitality and golf activity.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Lightspeed currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks in the industry worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Cirrus Logic CRUS currently has an Earnings ESP of +5.9% and sports a Zacks Rank #1. Cirrus Logic shares have gained 31.6% in the in the trailing 12 months. Cirrus Logic is set to report its third-quarter fiscal 2026 results on Feb. 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Micro Devices AMD has an Earnings ESP of +2.01% and a Zacks Rank #2 at present. Advanced Micro Devices shares have surged 112.6% in the trailing 12 months. Advanced Micro Devices is set to report its fourth-quarter 2025 results on Feb. 3.

Rockwell Automation ROK pesently has an Earnings ESP of +1.03% and a Zacks Rank #2. Rockwell Automation shares have soared 48.7% in the trailing 12 months. Rockwell Automation is set to report its first-quarter fiscal 2026 results on Feb. 5.

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This article originally published on Zacks Investment Research (zacks.com).

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