Light & Wonder Q3 revenue falls 2%

Overview

• Global games company's Q3 revenue fell 2% yr/yr

• Net income for Q3 rose 17% yr/yr, driven by margin strength and operational efficiencies

• Adjusted EPS for Q3 rose 17% yr/yr as margins improved and share count declined

Outlook

• Light & Wonder expects FY 2026 Consolidated AEBITDA growth toward the lower end of mid-to-high single digits

• Company anticipates Adjusted NPATA to grow faster than Consolidated AEBITDA, and EPSa to grow faster than Adjusted NPATA in FY 2026

Result Drivers

• RECURRING REVENUE GROWTH - Co said recurring revenue from Gaming operations and iGaming was a primary growth driver, supported by installed base expansion and content strength

• INSTALLED BASE EXPANSION - North American Gaming operations premium installed base grew for the 25th consecutive quarter, adding 2,657 units yr/yr, while Grover units also increased

• OPERATIONAL EFFICIENCIES - Margin improvement and lower interest and stock-based compensation expenses contributed to higher net income and adjusted NPATA

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Light & Wonder, Inc. is $117.50, about 33.3% above its November 3 closing price of $88.15

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)