Circle's stock soars 30% after blockbuster earnings beat analyst expectations
Circle Internet Financial (CRCL) has seen a sharp rise in its share price after releasing a strong quarterly report. The company's stock hit $90 intraday before settling near $87, extending a 30% rally from the previous session. Analysts have since adjusted their price targets for the stock market, though opinions remain mixed on the long-term outlook.
Circle's fourth-quarter revenue reached $770 million, marking a 77% annual increase. Earnings per share came in at $0.43, beating analyst forecasts by about 23%. The company also projected a 40% annual growth rate for USDC circulation, with additional revenue streams expected to hit $170 million by 2026—up from $110 million in 2025.
Several financial firms have updated their assessments following the results. Bernstein kept its Outperform rating and raised its price target to $190, pointing to stronger transaction revenue and growing blockchain rewards. William Blair also maintained an Outperform stance, suggesting long-term investors consider building positions.
Mizuho lifted its price forecast to $90 from $77 but kept a Neutral rating, warning of potential pressure from interest-rate cuts. The firm also noted that prediction markets like Polymarket have driven USDC transaction volumes and reserve growth. Meanwhile, Clear Street increased its target to $92 from $85, though it retained a Hold recommendation, citing improved fundamentals.
Circle's current market capitalisation stands at roughly $14.45 billion, with shares trading around $81.88—a 51% decline over the past six months. The company's stock recently gained 2.0% after announcing an EU-funded project, BoostEDIC M&L, backed by a €189,000 contribution.
The latest earnings report has prompted a mix of upgraded price targets and cautious outlooks. Circle's revenue growth and USDC expansion plans remain key drivers, though market conditions and interest-rate risks could influence performance. With Tether and Circle dominating over 94% of the stablecoin market, projections for a $2 trillion total market cap by 2026 add further context to the company's trajectory.
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