Duolingo Inc (NASDAQ:DUOL) on Thursday reported upbeat fourth-quarter sales but issued sales guidance below estimates.
Duolingo posted quarterly sales of $282.868 million, beating market estimates of $275.925 million.
Duolingo said it sees FY2026 sales of $1.197 billion to $1.221 billion, versus expectations of $1.264 billion.
“At the same time, advances in AI are fundamentally reshaping how people learn, and we believe this is a pivotal moment for our company. In 2026, we are deliberately prioritizing user growth and teaching better. We’ll focus on improving the free learner experience to grow word of mouth and feed our next user growth engines like chess, math and music, even though that moderates near-term financial growth. We believe this strategy positions Duolingo to reach 100 million daily active users in the medium-term and build a significantly larger, more durable business in the long-term.”
Duolingo shares fell 25.6% to $87.45 in pre-market trading.
These analysts made changes to their price targets on Duolingo following earnings announcement.
- Morgan Stanley analyst Nathan Feather downgraded Duolingo from Overweight to Equal-Weight and lowered the price target from $245 to $100.
- Evercore ISI Group analyst Mark Mahaney downgraded the stock from Outperform to In-Line and lowered the price target from $330 to $114.
- Needham analyst Ryan MacDonald maintained the stock with a Buy and lowered the price target from $300 to $145.
- JP Morgan analyst Bryan Smilek downgraded Duolingo from Overweight to Neutral and lowered the price target from $200 to $95.
Considering buying DUOL stock? Here’s what analysts think:
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