Hospitality and casino entertainment company MGM Resorts (NYSE:MGM) announced better-than-expected revenue in Q2 CY2026, with sales up 1% year on year to $4.45 billion. Its non-GAAP profit of $0.59 per share was 1.9% above analysts’ consensus estimates.
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MGM Resorts (MGM) Q2 CY2026 Highlights:
- Revenue: $4.45 billion vs analyst estimates of $4.42 billion (1% year-on-year growth, 0.7% beat)
- Adjusted EPS: $0.59 vs analyst estimates of $0.58 (1.9% beat)
- Adjusted EBITDA: $610.4 million vs analyst estimates of $1.19 billion (13.7% margin, 48.6% miss)
- Operating Margin: 11.3%, up from 9.2% in the same quarter last year
- Market Capitalization: $11.82 billion
"MGM Resorts once again demonstrated the strength of our diversified portfolio with record second quarter consolidated revenue driven by a second consecutive quarter of year-over-year revenue growth for Las Vegas Strip Resorts, all-time best Regional Operations same-store quarterly revenue, and 20% year-over-year revenue growth at MGM Digital," said Bill Hornbuckle, President and CEO of MGM Resorts International.
Company Overview
Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE:MGM) is a global hospitality and entertainment company known for its resorts and casinos.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, MGM Resorts grew its sales at a 22.1% compounded annual growth rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. MGM Resorts’s recent performance shows its demand has slowed as its annualized revenue growth of 2% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. Note that COVID hurt MGM Resorts’s business in 2020 and part of 2021, and it bounced back in a big way thereafter. 
MGM Resorts also breaks out the revenue for its most important segment, Casino. Over the last two years, MGM Resorts’s Casino revenue (Poker, sports betting) averaged 5.3% year-on-year growth. This segment has outperformed its total sales during the same period, lifting the company’s performance. 
This quarter, MGM Resorts reported modest year-on-year revenue growth of 1% but beat Wall Street’s estimates by 0.7%.
Looking ahead, sell-side analysts expect revenue to decline by 1.9% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges.
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Operating Margin
MGM Resorts’s operating margin has been trending down over the last 12 months and averaged 6.9% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
This quarter, MGM Resorts generated an operating margin profit margin of 11.3%, up 2.1 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
MGM Resorts’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q2, MGM Resorts reported adjusted EPS of $0.59, down from $0.79 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 1.9%. Over the next 12 months, Wall Street expects MGM Resorts’s full-year EPS to shrink by 37.6% from $2.92 to $1.82.
Key Takeaways from MGM Resorts’s Q2 Results
We are encouraged by MGM Resorts's modest revenue and non-GAAP EPS beat. Overall, this quarter was roughly in line with expectations. The stock remained flat at $45.50 immediately after reporting.
MGM Resorts may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
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