[DigitalToday reporter Yoonseo Lee] Robinhood's (HOOD) prediction markets business is expected to become a key revenue driver by 2028, surpassing its cryptocurrency segment.

Cointelegraph reported on Oct. 26 that global investment bank Bernstein forecast Robinhood's 2028 prediction market revenue at $1.7 billion, above its 2028 crypto revenue estimate of $1.6 billion.

The forecast came a day before Robinhood's release of its 2026 third-quarter results. Bernstein expects prediction markets to emerge as a business that drives additional revenue for Robinhood, a retail investor-focused trading platform.

Bernstein forecast Robinhood's 2026 third-quarter revenue at around $1.5 billion, up 13 percent from the previous quarter. It cited increased notional stock trading volume, options trading and event contract trading, and a recovery in crypto trading volume.

Bernstein also raised its annual estimates. Reflecting higher assumptions for stock and crypto revenue, it lifted its revenue forecasts by 3 percent for 2026, 4 percent for 2027 and 3 percent for 2028. It kept its price target at $160. That indicates it raised revenue forecasts but did not change its stock valuation criteria.

Market reaction was mixed. Robinhood shares, listed on the Nasdaq, fell as low as $93.60 in premarket trading on the day, according to Yahoo Finance data. The stock is down more than 29 percent over the past 12 months. Earnings expectations have risen, but the share price has yet to fully reflect them.

In this situation, the market's focus is on how closely actual results match Bernstein's forecast. If the prediction markets segment is confirmed as an additional growth engine while the recovery in stock and crypto trading continues, Robinhood's medium- to long-term earnings structure could also change.

The forecast shows Robinhood's revenue base is expanding from crypto and stock trading to prediction markets. Ahead of its 2026 third-quarter results, it was confirmed that the new business could grow to a meaningful share of medium- to long-term revenue.