Earnings call transcript: TKO Q2 2026 revenue meets forecasts as EPS misses
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"summary": "TKO Group Holdings reported second-quarter revenue that matched Wall Street expectations, but earnings per share came in below forecasts as the company absorbed costs tied to major live events and international expansion. The sports and entertainment company posted adjusted EPS of $1.34, below the $1.53 estimate, while revenue reached $1.55 billion, in line with forecasts. Shares rose 1.69% in after-hours trading to $187.01, after closing the regular session at $184.33, suggesting investors were encouraged by the company’s stronger outlook and broad-based growth. The company delivered strong operating results in the second quarter, helped by a busy calendar of premium live events and growing demand for sports content and hospitality packages. Revenue climbed to $1.547 billion from the year-earlier period, while adjusted EBITDA reached $650 million, up 23%. The quarter reflected the company’s strategy of using major events to drive media rights, partnerships, and ticketing revenue. Management said the business remains supported by long-term media deals and strong consumer demand for live experiences. The company also emphasized its scale in global sports and entertainment, with record engagement around UFC Freedom 250, strong international WWE activity, and continued demand for FIFA World Cup hospitality through On Location. TKO raised its full-year 2026 guidance after the strong first half of the year, expecting revenue of $5.775 billion to $5.825 billion and adjusted EBITDA of $2.275 billion to $2.305 billion. The company’s P/E ratio of 68.81 reflects high expectations, but according to an InvestingPro tip, it’s trading at a low P/E relative to near-term earnings growth. Analysts forecast full-year EPS of $16.16 for 2026, representing significant growth from the last twelve months’ diluted EPS of $2.69. For investors seeking deeper analysis, TKO is among the 1,400+ US equities covered by InvestingPro’s comprehensive Pro Research Reports, which transform complex data into clear, actionable intelligence."
Investing.com Australia
