Coinbase beats Q3 earnings but faces 31% cut in 2026 forecasts
Coinbase Global Inc. (COIN) has reported mixed financial results and revised future forecasts. The company’s third-quarter earnings per share (EPS) beat expectations, but analysts have slashed estimates for 2026. Meanwhile, concerns over valuation and rising costs have sparked debate among investors.
COIN’s latest quarterly report showed an EPS of $1.5, surpassing the $1.1 consensus estimate. Despite this positive surprise, the company faces ongoing challenges tied to its reliance on cryptocurrency markets, which remain highly volatile.
Analysts have cut their 2026 EPS forecast for COIN by 31%, reducing it from $9.56 to $6.55. The revision reflects uncertainty around the company’s long-term earnings stability. At the same time, expenses are climbing due to recent acquisitions, including Deribit and Echo, which are expected to add around $100 million in costs by the fourth quarter.
The stock currently trades at a 2026 price-to-earnings (P/E) ratio of 31.56x, well above peers like London Stock Exchange Group (LSEGY) at 21.54x and Nasdaq (NDAQ) at 26x. COIN also does not pay dividends, unlike LSEGY and NDAQ, which offer forward yields of 1.09% and 1.21% respectively.
Wall Street remains divided on the stock’s outlook. Out of 33 analysts covering COIN, 16 rate it as a 'Strong Buy', while 14 recommend holding. Research firm Argus has argued that the stock is overvalued compared to competitors, cautioning against a 'Buy' rating at current levels.
Employee headcount at COIN is still growing, though the pace may slow. The company’s share price also sits at a 24% discount to its own five-year historic average P/E ratio, adding another layer of complexity for investors assessing its value.
COIN’s latest results highlight both strengths and risks. While the company beat quarterly expectations, lower future earnings estimates and rising costs raise questions about sustainability. With analysts split on its valuation, investors will likely keep a close eye on expense management and market conditions in the months ahead.
