Circle's Revenue Growth Slows Amid Arc Blockchain Launch Plans

Circle Internet Group reported second-quarter 2026 results that fell short of analyst expectations. The company's total revenue and reserve income came in at $701 million, up 7% year over year but below the estimated $712 million.

The stock dipped by about 3.6% after the report was released, but analysts still maintain a consensus buy rating with an average price target near $120, suggesting the stock could roughly double from its current value.

Buried within the slower headline number were some positive trends for Circle's USDC stablecoin. On-chain transaction volume reached $14.8 trillion for the quarter, up 151% year over year, while circulation increased by 19% to $73.3 billion at the end of the period.

Circle also made significant announcements during its earnings call, including receiving approval from the Office of the Comptroller of the Currency to establish a national trust bank, Circle National Trust. This gives the company a regulatory foundation to custody assets and run trust services directly.