- PENN
+0.97%
Casino, sports betting and <a href="https://comicvibe.com/shemaroo-gets-mib-nod-to-launch-hindi-entertainment-channel-mango-tv/” title=”Shemaroo gets MIB nod to launch Hindi entertainment channel Mango TV”>entertainment operator PENN Entertainment (NASDAQ:PENN) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 5.2% year on year to $1.86 billion. Its non-GAAP profit of $0.44 per share was 66.9% above analysts’ consensus estimates.
Is now the time to buy PENN Entertainment? Find out in our full research report.
PENN Entertainment (PENN) Q2 CY2026 Highlights:
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Revenue: $1.86 billion vs analyst estimates of $1.86 billion (5.2% year-on-year growth, in line)
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Adjusted EPS: $0.44 vs analyst estimates of $0.26 (66.9% beat)
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Adjusted EBITDA: $312.6 million vs analyst estimates of $454.6 million (16.8% margin, 31.2% miss)
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Operating Margin: 7.1%, up from 5.3% in the same quarter last year
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Free Cash Flow Margin: 5.2%, up from 1.1% in the same quarter last year
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Market Capitalization: $2.49 billion
Company Overview
Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.
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. Unfortunately, PENN Entertainment’s 7.5% annualized revenue growth over the last five years was weak. This fell short of our benchmark for the consumer discretionary sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. PENN Entertainment’s annualized revenue growth of 6.7% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. Note that COVID hurt PENN Entertainment’s business in 2020 and part of 2021, and it bounced back in a big way thereafter.
PENN Entertainment also breaks out the revenue for its most important segment, Northeast Region. Over the last two years, PENN Entertainment’s Northeast Region revenue (casinos, hotels) averaged 1.4% year-on-year growth. This segment has lagged the company’s overall sales.
This quarter, PENN Entertainment grew its revenue by 5.2% year on year, and its $1.86 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 5.5% over the next 12 months, similar to its two-year rate. This projection is underwhelming and indicates its products and services will face some demand challenges.
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