- SPHR
+4.77%
Content production and distribution company Sphere Entertainment (NYSE:SPHR) reported calendar Q3 2026 (fiscal Q1 2027) results beating Wall Street’s revenue expectations , with revenue up 4.5% year on year to $274.3 million. Its GAAP loss of $4.84 per share was significantly below analysts’ consensus estimates.
For more on Sphere Entertainment, read our full research report.
Sphere Entertainment (SPHR) Q3 CY2026 highlights:
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Revenue $274.3 million vs S&P analysts’ consensus estimates of $268.4 million (4.5% year-on-year growth, 2.2% beat)
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EPS (GAAP) -$4.84 vs analysts’ consensus estimates of -$1.67 (significant miss)
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Adjusted operating income $39.15 million vs analysts’ consensus estimates of -$66.47 million (14.3% margin, significant beat)
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Operating margin -87.7%, down from -22.3% in the same quarter last year
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Market capitalization $3.91 billion
Executive Chairman and CEO James L. Dolan said, “With today’s results, our Sphere segment remains on track to deliver substantial growth this calendar year. Looking ahead, we continue to make progress on our long-term vision for Sphere, including a global network of venues and a growing slate of original content.”
Revenue growth
A company’s long-term revenue performance is one signal of its overall quality. Any business can deliver a good quarter or two, but many enduring ones grow for years. Sphere Entertainment’s revenue grew at a weak 7.8% compounded annual growth rate over the last five years, falling short of the consumer discretionary sector benchmark.
Long-term growth matters most, but within consumer discretionary, a longer historical view may miss a company riding a successful new product or trend. Sphere Entertainment’s annualized revenue growth of 9.7% over the last two years is above its five-year trend, a positive sign. Covid hurt Sphere Entertainment’s business in 2020 and part of 2021, and it rebounded sharply thereafter.
A closer look at the company’s revenue dynamics starts with its most important segments, Sphere and MSG Networks, which account for 72.5% and 27.5% of revenue. Over the last two years, Sphere Entertainment’s Sphere revenue (live events and advertising) averaged 31.4% year-on-year growth. On the other hand, its MSG Networks revenue (content distribution) averaged 13.2% declines.
This quarter, Sphere Entertainment reported modest year-on-year revenue growth of 4.5% but beat Wall Street’s consensus estimates by 2.2%.
Looking ahead, sell-side analysts expect revenue to decline by 3.6% over the next 12 months a deceleration versus the last two years. This underwhelming projection suggests its products and services will face some demand headwinds
