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    How Investors May Respond To MGM Resorts International (MGM) Profit Miss

    Simply Wall St·11/01/2026 17:23:36
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    • MGM Resorts International reported third quarter 2026 revenue of US$4.21b and a net loss of US$17.11 million, with earnings for the first nine months of 2026 at US$400.46 million.
    • The swing from a net loss in the prior nine month period to positive earnings, alongside pressure on adjusted profitability, highlights how MGM Resorts International is balancing casino performance with rising costs and travel related headwinds.
    • The focus now turns to how MGM Resorts International's weaker adjusted profitability in this quarter could influence the existing investment narrative.

    Scan how MGM Resorts International stacks up against a hand picked group of companies balancing earnings swings with resilient demand using the 33 high quality undervalued stocks.

    MGM Resorts International Investment Narrative Recap

    For an investor to stay with MGM Resorts International, the core belief is that steady demand in Las Vegas, regional casinos, Macau and digital betting can offset cost pressure and debt service. The latest quarter shows that story is intact on activity, with revenue broadly stable, but weaker adjusted profitability keeps the focus firmly on expenses and insurance related drag.

    The key near term swing factor is how quickly MGM Resorts International can rebuild margin quality after this softer quarter, while still funding projects such as Osaka and premium upgrades in Macau. The biggest risk remains high leverage, with interest coverage already flagged as tight if earnings lose momentum.

    The most relevant disclosure for this earnings update is the nine month 2026 income statement. MGM Resorts International moved from a net loss of US$87.75 million a year earlier to net income of US$400.46 million, on revenue of US$13.12b. That turn to profitability gives management more room to keep investing across Vegas, Macau and digital initiatives.

    For catalysts, that improved year to date profit base matters because projects like the Osaka resort and MGM Digital expansion require meaningful capital while self insurance costs and legal exposures sit in the background. Investors tracking MGM Resorts International will likely weigh that higher earnings run rate against ongoing debt of about US$30.02b and interest payments that are not yet comfortably covered.

    MGM Resorts International's analyst narrative points to forecast revenue of US$19.3b and earnings of US$340.0 million by 2029, based on an assumed 2.8% yearly revenue growth rate and a projected earnings decline of US$359.3 million from US$699.3 million today.

    Uncover why MGM Resorts International's fair value indicates a 32% potential upside to its current price that could narrow quickly.

    NYSE:MGM 1-Year Stock Price Chart
    NYSE:MGM 1-Year Stock Price Chart

    Exploring Other Perspectives

    One alternate view focuses less on Osaka or Macau and more on MGM Resorts International’s legal and self insurance burden. The most cautious analysts were already assuming fairly flat revenue at about US$17.9b by 2029 and earnings of roughly US$540.8 million. After this earnings miss on profitability, those already tough assumptions may shift again. Explore the full range of scenarios before deciding how this update fits your own thesis.

    Explore 6 other MGM Resorts International fair value estimates, including one that suggests there may be as much as 7% downside from the current price.

    Form Your Own Verdict

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