Criteo posts $428 mn revenue as AI and retail media fuel growth

MUMBAI: The shopping basket is getting smarter, and increasingly, it is AI deciding what goes into it. For commerce media company Criteo, that shift is translating into stronger retail media growth, deeper advertiser engagement and a bigger role for conversational commerce, even as parts of its performance advertising business remain under pressure.

Nasdaq-listed Criteo reported revenue of $428 million for the second quarter of 2026, with more than $1.1 billion in media spend flowing through its Commerce Intelligence Platform. Contribution ex-TAC, the company’s measure of net revenue, stood at $255 million, while adjusted EBITDA reached $73 million as disciplined cost management helped fund continued investments in AI-led products and long-term growth.

Retail media remained the standout performer during the quarter. Retail Media Contribution ex-TAC rose to $47 million, while the underlying retail media business expanded 20 per cent year on year after excluding previously announced retailer scope reductions. Retail media spend climbed 31 per cent, with more than 4,500 brands advertising through Criteo’s platform.

Performance Media Contribution ex-TAC totalled $208 million, reflecting continued weakness among a small number of large enterprise performance media accounts. However, the company said its broader advertiser base remained resilient, supported by sustained demand across its commerce advertising platform.

Artificial intelligence continued to move from experiment to execution. Criteo said more than 2,000 brands are now running campaigns through ChatGPT, doubling from over 1,000 at the end of April. It also expanded OpenAI demand integration to seven countries, including Japan, South Korea and Australia, with launches planned in Mexico and Brazil.

The company also became the first to integrate retailer product catalogues into ChatGPT through a partnership with Metro Canada, creating a new commerce channel for brands while opening additional monetisation opportunities for retailers. According to Criteo, traffic originating from ChatGPT converts at around 1.5 to two times the rate of traditional referral traffic, while nearly 80 per cent of paid traffic consists of new-to-brand users.

Building on its AI push, Criteo introduced Sponsored Recommendations within retailer AI assistants, with Albertsons becoming the first retailer to deploy the feature. It also launched Conversational Ads for AI-assisted shopping experiences and expanded adoption of its Model Context Protocol (MCP) server among brands and agency holding companies.

The company’s commercial momentum also gathered pace beyond its product launches. Its qualified sales pipeline grew about 30 per cent year on year, while agencies accounted for roughly 55 per cent of the pipeline, up from around 35 per cent a year earlier.

Among smaller advertisers, adoption of Criteo GO continued to accelerate. More than half of the company’s small clients globally now use the AI-powered self-service platform, with new account creation in June running nearly three times higher than during its early months. In the US, almost 80 per cent of revenue generated through Criteo GO now comes from cross-channel campaigns spanning display, social, video and AI-powered advertising channels, highlighting how AI is rapidly becoming the engine driving the next phase of commerce media.