Abstract

Penn Entertainment will report its quarterly results on February 26, 2026 Pre-Market. This preview compiles last quarter’s performance, this quarter’s forecast, business segment trends, and recent analyst opinions to frame likely outcomes and key debate points.

Market Forecast

For the current quarter, consensus embedded in the company’s latest guidance set suggests revenue of $1.76 billion, up 4.79% year over year, EBIT around $128.76 million with a year-over-year rise of 227.997%, and EPS of -$0.08 with an implied year-over-year improvement of 79.40%. Margin expectations imply stabilization: investors are watching whether gross margin can hold near the mid-30% area and whether the net margin loss narrows materially from last year’s levels. The main business outlook centers on the core gaming operations supported by non-gaming (food, beverage, hotel) traffic; continued engagement and promotional discipline will be watched for both land-based and interactive channels. The most promising area remains gaming, projected revenue of $1.33 billion this quarter, with momentum tied to steady visitation and targeted marketing; non-gaming is projected at about $392.10 million.

Last Quarter Review

Penn Entertainment’s previous quarter delivered revenue of $1.72 billion, gross margin of 33.81%, GAAP net loss attributable to shareholders of $865.00 million, net margin of -50.35%, and adjusted EPS of -$0.30, with year-over-year revenue growth of 4.77%. A notable development was EBIT of $48.60 million versus a higher model estimate, reflecting operational pressure and heavier expenses that weighed on profitability. By business line, gaming contributed $1.33 billion and non-gaming (food, beverage, hotel, and related) contributed $392.10 million; gaming remained the primary engine for revenue despite cost headwinds.

Current Quarter Outlook (with major analytical insights)

Core Gaming Operations

Core gaming remains the company’s revenue anchor, expected to deliver approximately $1.33 billion in revenue this quarter. Sequential operating focus appears to be on yield management, event-led traffic, and promotional efficiency. If promotional intensity remains contained and labor scheduling optimizes weekend/drive-to demand, gross margin resilience should follow, potentially holding near the mid-30% range captured last quarter. The biggest sensitivity for reported EBIT is promotional spending cadence and table slots mix, which can swing hold and flow-through by several percentage points. Regulatory calendars and regional sports schedules may modestly affect weekend volumes in key Midwest and Northeast properties, adding noise around the baseline. On balance, a modest year-over-year revenue lift paired with tighter expense control is essential to achieve the forecast EBIT expansion.

Interactive and Omni-Channel Engagement

Penn Entertainment’s digital engagement funnel, although not broken out here as a standalone revenue line, influences visitation and cross-sell for both gaming and non-gaming. Management’s emphasis on targeted offers and loyalty integration aims to lift frequency while limiting promo leakage. This is critical following the prior quarter’s net loss, where expense discipline will be scrutinized. A cleaner promotional environment in several regional markets would help contribution margins, while any step-up in brand marketing to drive app engagement could weigh on near-term EBIT. The trajectory of daily active users and deposit growth rates, while not disclosed in the dataset, are typical leading indicators that investors will attempt to triangulate from management commentary. Positive signals here would support the EPS improvement path implied by the current forecast.

Non-Gaming Revenue Drivers

Non-gaming categories, including food, beverage, and hotel, are expected to contribute about $392.10 million this quarter. These categories provide incremental margin via higher-margin outlets and event programming that extends average length of stay. Upside risk lies in stronger convention and entertainment calendars or enhanced conversion from loyalty members to premium hotel and dining packages. Cost risks include wage inflation in hospitality roles and vendor costs that can pressure outlet-level margins. If occupancy and food-and-beverage check averages track ahead of seasonal norms, the company could generate a helpful buffer to offset variability in gaming hold. The extent to which non-gaming growth runs ahead of gaming could be a useful read-through for broad-based property health.

Profit Sensitivities and Stock Price Drivers

The market’s focus this quarter is on whether Penn Entertainment can convert low-single-digit revenue growth into a visible improvement in earnings quality. The EPS forecast of -$0.08 implies significant year-over-year improvement, which requires operating leverage from both cost control and disciplined promotions. The large GAAP net loss last quarter heightens attention on non-cash items, impairment risk, and any restructuring charges that could cloud comparability. Investors will parse commentary on marketing spend pacing, property-level margin dispersion, and capex prioritization for omni-channel initiatives. A credible path to positive EBIT growth of 227.997% year over year would likely require stable demand, tighter promo levers, and a benign competitive backdrop in key states.

Analyst Opinions

Across recent previews and rating updates, the balance of opinion skews cautious-bearish. Analysts flag that while revenue growth is anticipated in the low- to mid-single-digit range, profitability remains in question given prior-quarter losses and uncertain promotional dynamics. The majority view emphasizes that investors need clearer evidence of sustainable digital contribution margins and stabilization in land-based flow-through before re-rating. Commentary also highlights close monitoring of EBIT delivery against the $128.76 million forecast and whether EPS loss narrows to the expected -$0.08. Well-known research desks have underscored the potential for results to hinge on promotional discipline and cost normalization, with cautious expectations for the February 26, 2026 print.