Hood Stock: Buy, Hold or Sell Ahead of Q2 Earnings?

Hold hood stock if you already own it, but wait on new buys until after Q2 results. Zacks flags rising costs, weak crypto activity and a premium valuation as reasons to stay patient. Analysts still see upside to about $125, yet the near-term setup favors caution over chasing the print.

Key Takeaways

• Robinhood (NASDAQ: HOOD) reports Q2 2026 after the close on Wednesday, July 29, with Wall Street looking for roughly $1.22 billion in revenue and about $0.39 EPS.
• Zacks leans Hold for existing owners and advises against fresh buys ahead of the release, citing crypto weakness, elevated expenses and a rich valuation.
• A consensus price target near $125 implies sizable upside from recent levels, while short interest remains modest and options traders have favored calls.
• Robinhood Chain launched July 1, so any contribution from the new Ethereum Layer 2 will not show up in these Q2 numbers.

HOOD is one of three major crypto-linked names reporting this week, alongside Coinbase and Strategy, giving investors a cluster of reads on digital-asset demand after a bruising quarter. For more portfolio context, see our Net Worth & Wealth hub.

Should you buy, hold or sell hood stock right now?

Per Zacks Investment Research, existing shareholders may hold, but new positions look premature until management updates investors on product adoption and the earnings print lands.

That view sits beside constructive Street targets. Benzinga notes a consensus price target of $125 from 21 analysts, about 32% above recent trading near $95.65, with targets raised in each of the last five ratings.

Short interest recently rose to 37.5 million shares, or 4.8% of the float—still below the 5% level often read as minimal bearish pressure. Put-call data also pointed to heavier call buying, signaling upside speculation rather than a crowded short thesis.

What do analysts expect from Robinhood’s Q2 earnings?

Zacks’ consensus calls for sales of $1.22 billion, up 23.6% year over year, and EPS of $0.39, down 7.1% from a year earlier. Estimates held steady at that 39-cent mark over the past week.

Transaction-based revenue is pegged at $723.6 million, up 34.2%, with options about $333.6 million and equities about $125.2 million. Cryptocurrency transaction revenue is expected near $83.5 million, down roughly 48% year over year, while “other” transaction revenue—helped by prediction markets—is seen jumping to about $171 million from $48 million.

Robinhood beat the Zacks consensus in three of the last four quarters, with an average surprise of 13.71%. An Earnings ESP of +2.98% plus a Zacks Rank #3 (Hold) also raises the odds of another beat, though a beat alone may not move the stock if crypto and costs disappoint.

Why does crypto and Robinhood Chain matter for this report?

Crypto still matters for sentiment. It made up 21% of first-quarter transaction-based revenue, even as that share fell sharply from a year earlier. BeInCrypto notes Q1 crypto transaction revenue plunged 47% to $134 million, and diluted EPS of $0.38 missed forecasts.

June workforce cuts of about 10% add another watch item: Zacks cites roughly $28 million in restructuring charges for Q2, while BeInCrypto breaks that into about $20 million in severance and benefits plus roughly $8 million in share-based compensation.

Robinhood Chain, an Ethereum Layer 2 aimed at tokenized stocks, DeFi and AI agents, launched earlier this month. Because it went live after the quarter ended, investors will hear strategic color on the call more than any P&L boost in this release.

Shares jumped about 45% in Q2 on diversification hopes, then slipped in July and sit roughly 15% lower year to date. Valuation remains rich: Zacks puts HOOD at 9.56 times trailing tangible book versus 3.40 times for the industry. Bottom line: hold if you are long, and wait for the numbers before adding hood stock.