Criteo Cuts 2026 Outlook After Soft Q1 as AI Push Shows Early Traction

Overview

• Criteo reported Q1 revenue of $425 million as contribution ex‑TAC reached $250 million and activated media spend surpassed $1 billion for the first time.
• Contribution ex‑TAC, which excludes what Criteo pays publishers for ad inventory, is the company’s key profit gauge and it declined year over year.
• The company now expects a low single‑digit decline in 2026 contribution ex‑TAC and guided Q2 revenue ex‑TAC to $260–$264 million with no material AI lift assumed this year.
• Management said reduced budgets at two retail media clients created a $27 million hit, with retail media revenue down 31% to $41.3 million and performance media down 2% to $383.4 million.
• Shares fell after the more cautious forecast even as Criteo highlighted its OpenAI integration and more than 1,000 brands live on ChatGPT, and it also flagged plans to redomicile to the U.S. to widen investor access.