- PENN
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Casino, sports betting and entertainment operator PENN Entertainment (NASDAQ:PENN) met Wall Street’s revenue expectations in Q3 2026, with revenue up 7.1% year on year to $1.84 billion. Its non-GAAP profit of $0.32 per share was significantly above analysts’ consensus estimates.
For more on PENN Entertainment, read our full research report.
PENN Entertainment (PENN) Q3 2026 highlights:
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Revenue $1.84 billion vs S&P analysts’ consensus estimates of $1.84 billion (7.1% year-on-year growth, in line)
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Adjusted EPS $0.32 vs S&P analysts’ consensus estimates of $0.12 (significant beat)
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Adjusted EBITDA $284 million vs analysts’ consensus estimates of $438.7 million (15.4% margin, 35.3% miss)
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Operating margin 6.9%, up from 2.9% in the same quarter last year
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Market capitalization $2.22 billion
Jay Snowden, Chief Executive Officer and President, said: “PENN’s third quarter results were highlighted by strong year-over-year growth in Retail Segment Adjusted EBITDAR, continued progress toward Interactive profitability, and further balance sheet deleveraging. Our Retail segment achieved record third quarter revenue, reflecting broad-based strength across the portfolio, including our completed development projects. Sustained revenue growth in U.S. standalone Hollywood iCasino and Canada, together with operational discipline, reinforces our confidence in achieving our full-year Adjusted EBITDA target in our Interactive segment. Importantly, the healthy operating trends we experienced across both our Retail and Interactive segments continued through October.”
Revenue growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, PENN Entertainment grew its revenue at a weak 6.3% compounded annual growth rate, falling short of the consumer discretionary sector standard.
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. PENN Entertainment’s annualized revenue growth of 7.5% over the last two years is above its five-year trend, a positive sign. Covid hurt PENN Entertainment’s business in 2020 and part of 2021, and the business rebounded sharply 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 1.5% year-on-year growth. This segment has lagged the company’s overall revenue.
