TKO Shares Gain on Buyback Plan, Margin-Growth Potential From Media Deals

Dow Jones
02/27
 

By Katherine Hamilton

 

TKO shares rose after the company said it would initiate a buyback and analysts saw potential for margin growth from new media deals.

The stock advanced 5% to $218.50 on Thursday, at one point touching an all-time high. Shares have gained 46% over the past 12 months.

The company behind Ultimate Fighting Championship and World Wrestling Entertainment said it plans to launch up to a $1 billion share buyback in March.

TKO's fourth-quarter sales came in about $15 million above Wall Street estimates at $1.04 billion, according to FactSet.

It expects adjusted earnings before interest, taxes, depreciation and amortization in 2026 to be $2.24 billion to $2.29 billion, compared with consensus estimates of $2.27 billion.

The earnings guidance reflects a continued shift to higher-margin contractual media rights and financial-incentive packages, Benchmark analyst Mike Hickey said in a note.

The company moved UFC's annual events to Paramount Skydance's streaming service in an effort to remove some paywall cost and broaden reach. The recent UFC 324 debut on Paramount+ had the broadest reach for a UFC event in nearly a decade, UBS analysts said.

TKO's partnerships in 2025 were also strong, and the company raised its 2030 partnerships target, the analysts noted.

The earnings-guidance beat helped boost investor confidence despite the company's 2026 revenue outlook. TKO expects sales of $5.68 billion to $5.78 billion, below the $6.07 billion analysts had been projecting.

 

Write to Katherine Hamilton at katherine.hamilton@wsj.com

 

(END) Dow Jones Newswires

February 26, 2026 13:32 ET (18:32 GMT)

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