Hospitality and casino entertainment company MGM Resorts (NYSE: MGM) met Wall Street’s revenue expectations in Q3 2026, but revenue was flat year on year at $4.21 billion. Its non-GAAP loss of $0.11 per share was significantly below analysts’ consensus estimates.

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"MGM Resorts remains highly focused on the successful operations of our businesses. Our trailing twelve months Las Vegas Strip Resorts Segment Adjusted EBITDAR has grown by nearly 70% since calendar year 2019 and, while lower room rates during the third quarter impacted our results, October has rebounded favorably. Our diverse portfolio remains an advantage, with MGM China achieving 5% revenue growth and strong market share performance, while our digital businesses - including our BetMGM North America Venture and MGM Digital - reported strong topline growth during the third quarter," said Bill Hornbuckle, President & CEO of MGM Resorts International. "MGM Resorts remains dedicated to our mission to be the world's largest gaming and entertainment company with global integrated resorts, a leading digital presence, and, notably, an enviable growth pipeline with MGM Osaka to drive future value."

Revenue growth

A company’s long-term revenue performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones sustain growth for years. Over the last five years, MGM Resorts grew its revenue at a 16.9% annual rate. Though this growth is acceptable on an absolute basis, revenue growth alone is not enough in the consumer discretionary sector, which can display significant earnings volatility. The bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, the five-year CAGR starts around Covid, when revenue was depressed before rebounding.

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 1.3% over the last two years was below its five-year trend. Decelerating revenue growth in the sector warrants caution, as it could signal changing consumer tastes facilitated by low switching costs. Note that Covid hurt MGM Resorts’s business in 2020 and part of 2021, and the business recovered substantially thereafter.

The company’s most important segment, Casino, offers a closer look at its revenue dynamics. Over the last two years, MGM Resorts’s Casino revenue (Poker, sports betting) averaged 4.9% year-on-year growth. This segment has outperformed its total revenue during the same period, lifting the company’s performance.

This quarter, MGM Resorts’s $4.21 billion of revenue was flat year on year and in line with Wall Street’s consensus estimates.

Looking ahead, sell-side analysts expect revenue to decline by 2.7% over the next 12 months, according to S&P, a deceleration versus the last two years. That underwhelming outlook suggests its products and services will face some demand challenges.

Operating margin

MGM Resorts’s operating margin has been trending up over the last 12 months and averaged 6.3% over the last two years. The company’s improved efficiency is a positive, but its suboptimal cost structure means profitability remains inadequate for a consumer discretionary business.

In Q3, MGM Resorts generated an operating margin of 2.8%, up 5.5 percentage points year on year. This increase was a positive development, reflecting improved efficiency.

Earnings per share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

MGM Resorts’s full-year EPS turned positive after being negative five years ago. That improvement marks a critical turning point for the company.

In Q3, MGM Resorts reported adjusted EPS of negative $0.11, down from $0.24 in the same quarter last year. This result missed analysts’ consensus estimates. Over the next 12 months, Wall Street expects MGM Resorts’s full-year EPS to shrink by 47.2% from $2.57 to $1.36, according to S&P.

Key takeaways from MGM Resorts’s Q3 results

MGM Resorts delivered a weaker quarter with few positives: EBITDA and EPS both fell short of Wall Street’s consensus estimates. Shares edged lower 1.3% to $26.91 immediately after the results.

MGM Resorts’s earnings report left more to be desired. The question is whether this quarter has created a buying opportunity. That decision requires a broader look at valuation and business quality alongside the latest earnings. For more on MGM Resorts, read our full research report here (it’s free).