PENN Entertainment (NASDAQ:PENN) Releases Quarterly Earnings Results, Beats Expectations By $0.30 EPS

PENN Entertainment (NASDAQ:PENN) posted its earnings results on Thursday. The company reported $0.07 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.23) by $0.30, FiscalAI reports. PENN Entertainment had a negative return on equity of 4.59% and a negative net margin of 13.24%.The company had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.76 billion. During the same quarter in the prior year, the business earned ($0.44) earnings per share. PENN Entertainment’s revenue was up 8.2% on a year-over-year basis.

Here are the key takeaways from PENN Entertainment’s conference call:

• The U.S. sportsbook rebrand to theScore Bet produced positive adjusted EBITDA in December, and management expects the interactive segment to reach breakeven adjusted EBITDA in 2026 (a ~$268M year-over-year improvement) while cutting marketing spend by about $150M to focus on iCasino and Canada.
• Retail remains healthy with Q4 retail adjusted EBITDAR of $456.4M and guidance for 2026 retail net revenue of $5.7B–$5.85B and adjusted EBITDAR of $1.86B–$1.98B, supported by a $20M reduction in recurring maintenance CapEx and an outlook for >$3/share free cash flow and >1 turn of lease-adjusted deleveraging.
• Four growth projects (including Aurora and the Columbus hotel tower), continued momentum at Joliet and M Resort, and anticipated GLPI funding (≈$225M for Aurora) underpin a development plan targeting ~15%+ cash-on-cash returns, with 2026 total CapEx guided to $445M (project CapEx ~$225M).
• Near-term headwinds include weather that cut retail adjusted EBITDAR by about $7M in December (and an estimated $5M–$10M impact so far in Q1), local new supply pressure in Louisiana and Council Bluffs, and an expected ~2-week downtime when Aurora opens in 2Q that will weigh on quarterly cadence.
• Regulatory and legal uncertainty is a material risk — management flagged unresolved issues around prediction markets and recent state-level actions (e.g., Maine’s iGaming decision being legally challenged) and emphasized it will not take actions that could jeopardize land‑based gaming licenses.

PENN Entertainment Stock Performance

NASDAQ:PENN traded up $0.66 during midday trading on Friday, reaching $15.30. The stock had a trading volume of 7,539,207 shares, compared to its average volume of 4,601,661. The stock has a market cap of $2.04 billion, a P/E ratio of -2.41, a P/E/G ratio of 0.39 and a beta of 1.39. The firm has a fifty day simple moving average of $13.76 and a two-hundred day simple moving average of $15.95. PENN Entertainment has a 12-month low of $11.65 and a 12-month high of $22.13. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 3.65.

Key PENN Entertainment News

Here are the key news stories impacting PENN Entertainment this week:

• Positive Sentiment: PENN reported Q4 2025 adjusted EPS of $0.07 vs. a -$0.23 consensus and revenue of $1.81B (ahead of estimates). The beat on both EPS and revenue (and year-over-year revenue growth) was the immediate catalyst for the rally. Article Title
• Positive Sentiment: Management laid out targets for 2026 including ~20% interactive-segment EBITDAR growth and ~$3/share free cash flow while advancing restructuring/cost optimization — a clearer path to profitability that supports multiple expansion. Article Title
• Positive Sentiment: Analysts reacted positively: Deutsche Bank raised its PT to $17 (maintained Hold) and Wells Fargo upgraded PENN from Underweight to Equal Weight with a $16 target — these moves reduce downside perception and help buying interest. Article Title
• Positive Sentiment: Interactive/online operations reported stronger performance (positive adjusted EBITDA in December after theScore Bet rebrand and improved iCasino results); exit from the ESPN Bet JV appears to have left the interactive business in better shape, which traders rewarded. Article Title
• Neutral Sentiment: Local reporting notes “changes brewing” at PENN (management/strategy adjustments); details are preliminary but worth watching for concrete operational shifts. Article Title
• Negative Sentiment: Structural risks remain — PENN still reports negative net margin and negative ROE with high leverage (debt-to-equity ~3.65). Those fundamentals cap upside and keep the turnaround story conditional on execution. Article Title

Analysts Set New Price Targets

Several research firms recently weighed in on PENN. Deutsche Bank Aktiengesellschaft boosted their target price on PENN Entertainment from $16.00 to $17.00 and gave the stock a “hold” rating in a report on Friday. Canaccord Genuity Group reduced their price objective on shares of PENN Entertainment from $26.00 to $21.00 and set a “buy” rating on the stock in a research note on Tuesday, February 3rd. Susquehanna reduced their price objective on shares of PENN Entertainment from $20.00 to $17.00 and set a “positive” rating for the company in a research note on Wednesday, February 11th. Mizuho set a $19.00 price objective on shares of PENN Entertainment in a research report on Monday, February 2nd. Finally, Wells Fargo & Company raised shares of PENN Entertainment from an “underweight” rating to an “equal weight” rating and boosted their target price for the stock from $15.00 to $16.00 in a research note on Friday. Nine equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $19.73.

Hedge Funds Weigh In On PENN Entertainment

A number of hedge funds have recently added to or reduced their stakes in the business. Axxcess Wealth Management LLC grew its position in shares of PENN Entertainment by 54.8% during the 4th quarter. Axxcess Wealth Management LLC now owns 55,075 shares of the company’s stock worth $812,000 after buying an additional 19,500 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in shares of PENN Entertainment by 328.7% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 52,814 shares of the company’s stock worth $779,000 after buying an additional 40,493 shares during the last quarter. XTX Topco Ltd increased its stake in shares of PENN Entertainment by 59.6% in the fourth quarter. XTX Topco Ltd now owns 38,933 shares of the company’s stock worth $574,000 after purchasing an additional 14,534 shares in the last quarter. Susquehanna Portfolio Strategies LLC increased its position in shares of PENN Entertainment by 1,637.1% in the fourth quarter. Susquehanna Portfolio Strategies LLC now owns 194,365 shares of the company’s stock worth $2,867,000 after purchasing an additional 183,176 shares during the last quarter. Finally, Engineers Gate Manager LP lifted its holdings in shares of PENN Entertainment by 1,255.7% in the 4th quarter. Engineers Gate Manager LP now owns 567,388 shares of the company’s stock worth $8,369,000 after acquiring an additional 525,536 shares during the last quarter. Institutional investors and hedge funds own 91.69% of the company’s stock.

PENN Entertainment Company Profile

PENN Entertainment, Inc (NASDAQ: PENN) is a leading operator of gaming and racing facilities in the United States. The company’s business activities encompass land-based casinos, pari-mutuel racetracks, off-track wagering, and ancillary amenities such as hotels, restaurants and entertainment venues. In August 2022, the company rebranded from Penn National Gaming to PENN Entertainment to reflect its expanding footprint across digital and traditional segments of the gaming industry.

The company’s portfolio includes well-known properties under the Hollywood Casino and Ameristar Casino brands, located across multiple states including Pennsylvania, Ohio, Missouri and West Virginia.