Canaan's Q3 Performance Today: What the Numbers Really Show

Canaan just dropped its Q3 earnings report, and the numbers paint an interesting picture for investors watching CAN stock. Revenue hit $150.48 million for the quarter ending September 2025 – that’s a solid 104.4% jump year-over-year. But here’s where it gets interesting: the market was expecting $126.17 million, so CAN actually beat estimates by 19.26%. Not bad.

The Bottom Line: Earnings Beat Expectations

On the earnings side, the company posted an EPS of -$0.05, which might look rough on paper, but it’s actually better than the -$0.27 from the same period last year. Analysts had predicted -$0.06, so CAN beat that estimate by 16.67% as well. This is the kind of surprise that can move needle when Wall Street is pricing in losses.

Breaking Down CAN’s Revenue by Segment

The real story here is how Canaan’s different business lines performed:

Mining Revenue: Pulled in $30.55 million, slightly exceeding the three-analyst consensus of $29.7 million. Small beat, but consistent.

Products Revenue: This was the heavy lifter at $118.61 million versus analysts’ estimate of $93.62 million – a significant outperformance that drove the overall beat.

Other Revenue: Came in at $1.32 million, well above the $0.13 million that two analysts had predicted. Unexpected surplus on a smaller segment.

Why These Metrics Matter More Than Headlines

While most investors fixate on the top-line revenue versus earnings numbers, the segment breakdowns tell you where the growth is actually coming from. When Products revenue crushes expectations by $25 million, that’s telling you something about demand and pricing power that a single EPS number can’t capture.

These underlying metrics are what analysts project into future quarters – if Products continues performing like this, it rewires the entire outlook for CAN going forward.

The Stock Price Reality Check

Here’s the tension: despite beating earnings expectations, CAN stock has dropped 58.4% over the past month, while the broader S&P 500 stayed essentially flat (+0.2%). That kind of disconnect usually signals either profit-taking after a run-up or concerns about forward guidance that the earnings report didn’t fully address.

The good news? CAN carries a Zacks Rank #2 (Buy), suggesting analysts still see upside from current levels in the near term. The question is whether today’s earnings beat can reverse the recent selling pressure.

What Comes Next for CAN

The Q3 beat on both revenue and EPS is objectively positive. Whether it translates into momentum depends on management guidance for Q4 and whether those Products revenue gains are sustainable or one-time tailwinds. Investors holding CAN will be watching for clues about that in the earnings call.