Robinhood Markets Inc. (Robinhood (HOOD)) had a good Wednesday. The stock jumped more than 12% to $108.58, outpacing the broader market as the Nasdaq and S&P 500 posted modest gains. Two big things drove the move: an analyst price target hike and a strategic workforce reduction.

Analyst Price Forecast Revisions

On Wednesday, Argus Research maintained a Buy rating on Robinhood and raised its price forecast from $90 to $110. That's a nice vote of confidence, and it follows similar moves from other analysts earlier in the month. On June 11, Needham kept a Buy rating and bumped its target to $97. And on June 9, Cantor Fitzgerald reiterated an Overweight rating with a $110 price target.

Corporate Workforce Reduction Plans

On Tuesday, Robinhood announced it would cut about 10% of its full-time employees and close a small number of open roles. The company said the move is meant to "maintain a high performance culture, further accelerate product velocity, and remain lean and disciplined."

Management was careful to frame this as a decision made from a position of strength. They noted that June month-to-date average daily trading volumes hit record levels across equities, options, and prediction markets. So this isn't a desperate cost-cutting move—it's more about staying nimble and efficient.

Financial Impact and Restructuring Charges

The layoffs come with a price tag. Robinhood estimates it will incur about $20 million in cash restructuring charges for employee severance and benefits, plus roughly $8 million in share-based compensation. The company expects to book these charges in the second quarter of 2026.

Upcoming Quarterly Earnings Schedule

Robinhood is scheduled to report second-quarter earnings on July 29. Analysts are looking for earnings per share of 41 cents on revenue of $1.19 billion. That would be an improvement from the first quarter, when the company reported EPS of 38 cents (a penny below estimates) and revenue of $1.07 billion (short of the $1.14 billion consensus).

Investors seem to be betting that the combination of a leaner cost structure and strong trading volumes will help Robinhood deliver better numbers next month. We'll find out on July 29.