Can AI glasses make Warby Parker’s stock sexy?

Roth Capital Markets analyst Matt Koranda raised his price target on Warby Parker (Warby Parker Stock Quote, Chart, News, Analysts, Financials NYSE:WRBY) to $24.00 from $18.00 while maintaining a “Neutral” rating, following the company’s fourth-quarter results.

Shares jumped 18% on February 26 despite a Q4 miss and soft near-term guidance.

“Why the positive reaction?” Koranda asked in his Feb. 27 note. “We think the promise of the AI glasses launch with Google (no real tangible developments yet) and the perception of conservative guidance (2026 outlook doesn’t include sales from AI glasses) were enough to get bulls excited.”

Warby reported Q4 revenue of $212.0-million and Adjusted EBITDA of $15.2-million, missing consensus expectations. Revenue rose 11% year-over-year, driven by 7% active customer growth and a 6% increase in average revenue per customer to $324. Retail revenue increased 15% to $155.0-million, supported by store expansion to 323 locations, while e-commerce growth of 2% was weighed by the discontinuation of its home try-on program.

Adjusted EBITDA margin declined to 7.2%, reflecting gross margin pressure from tariffs and fixed-cost deleverage, partly offset by SG&A leverage.

Management guided 2026 revenue of $968.0-million and Adjusted EBITDA of $118.0-million, below prior consensus. The outlook assumes 11% revenue growth and 130 basis points of margin expansion but excludes any contribution from AI glasses.

Koranda includes modest AI glasses revenue in his model, projecting $44.0-million in 2026 sales and $5.5-million in incremental Adjusted EBITDA. Excluding that contribution, his estimates would align with company guidance.

“Despite the bounce in Warby stock, and the enthusiasm around AI glasses, we’re still at Neutral, awaiting store productivity improvements, and a better understanding of how smart glasses may enable structurally better growth for Warby,” he said.

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