MGM Resorts International reported first‑quarter 2026 revenue of $4.45 billion, a 4.2% year‑over‑year increase that surpassed the consensus estimate of $4.36 billion. The top‑line lift was driven by a 9% rise in MGM China net revenue to $1.1 billion and a 43% jump in MGM Digital net revenue to $183 million, while the Las Vegas Strip segment posted its first year‑over‑year revenue growth in more than a year, supported by convention business and a newly launched all‑inclusive promotion.
Diluted earnings per share were $0.49 versus the consensus estimate of $0.56, a miss of 12.5%. The shortfall reflects higher operating costs, including a $46 million increase in self‑insurance reserves, higher payroll, and gaming tax increases in China. Adjusted EBITDA fell to $580 million from $637 million year‑over‑year, and Las Vegas Strip segment adjusted EBITDAR dropped to $749 million from $811 million.
In Q1 2025 MGM reported diluted EPS of $0.69 and consolidated net revenue of $4.3 billion, indicating a decline in profitability despite revenue growth. The current quarter’s revenue growth is the first year‑over‑year increase since Q4 2024.
Management highlighted confidence in continued growth from convention bookings and the newly launched all‑inclusive promotion at MGM Grand Las Vegas. Bill Hornbuckle said, "Looking into the second quarter and beyond, we are seeing signs of strength driven by solid convention bookings, our newly launched all‑inclusive promotion, and our recently refreshed rooms at the MGM Grand Las Vegas." CFO Jonathan Halkyard noted that proceeds from the sale of MGM Northfield Park will provide flexibility for capital redeployment, including share repurchases, and added, "While we support a fair and balanced legal system, claims that lack merit divert capital, management attention, and resources away from investments that benefit employees, guests, and our communities. It has been an increasing cost in our business. The reason I wanted to call it out clearly. But for that charge, our results this quarter would have been, I think we'd all agree, much better on an operating basis. But we certainly hope that that's not going to be anything that recurs."
The announcement was met with a muted market response; analysts focused on the EPS miss, noting that the 12.5% shortfall was larger than the article’s estimate. The stock slipped modestly in aftermarket trading.
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