Mattel (MAT) Earnings Date & Reports

Key Takeaways

• Mattel reported third quarter 2026 net sales of $1.81 billion, up 4% as reported (3% in constant currency), but slightly below the analyst consensus of roughly $1.83–$1.84 billion.
• Adjusted earnings per share (EPS) came in at $1.30, well above consensus estimates of around $0.94–$0.96 and up from $0.91 a year earlier.
• Adjusted gross margin jumped 480 basis points to 55.0%, largely driven by $88 million in tariff refunds received during the quarter.
• Full-year 2026 adjusted EPS guidance of $1.05–$1.20 fell short of the consensus expectation of roughly $1.30, a key driver of investor caution.
• Adjusted operating income rose $106 million to $502 million, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached about $543 million.
• For more on Mattel's latest developments, explore its Major News, Today's Price Move, Price Targets, and Forecast pages.
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Earnings Context and Why It Matters

Mattel's third quarter 2026 report matters because it tests whether the toymaker can sustain profitable growth heading into the critical holiday selling season. The company has spent recent years improving margins and stabilizing sales after a period of uneven demand, and this quarter's results offered a mixed read on that progress. While a strong profit beat and tariff-related margin gains highlight improved efficiency, the modest sales miss and softer full-year earnings guidance signal that underlying demand and cost dynamics remain uncertain. For investors, the report provides an important checkpoint on management's turnaround execution, pricing power, and ability to navigate tariff and currency headwinds ahead of year-end.

Reported Results

Mattel reported third quarter 2026 net sales of $1,807 million, or $1.81 billion, up 4% as reported and 3% in constant currency compared with the prior-year period. The figure came in slightly below analyst consensus estimates of roughly $1.83–$1.84 billion. Reported gross margin rose 480 basis points to 54.8%, while adjusted gross margin reached 55.0%, primarily reflecting $88 million of tariff refunds that benefited cost of goods sold.

Reported operating income increased $96 million to $476 million, and adjusted operating income rose $106 million to $502 million. Net income climbed $75 million to $354 million. Reported EPS was $1.23, up from $0.88 a year ago, while adjusted EPS was $1.30, compared with $0.91 in the prior-year quarter and well ahead of consensus estimates of around $0.94–$0.96. Adjusted EBITDA was approximately $543 million, above analyst expectations.

For full-year 2026, Mattel now expects net sales growth of 1% to 4% in constant currency, adjusted gross margin of roughly 48%, adjusted operating income of $500 million to $570 million, and adjusted EPS of $1.05 to $1.20. The adjusted EPS outlook fell below the consensus expectation of roughly $1.30.

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Market Reaction and Investor Sentiment

Reaction to Mattel's report was mixed, reflecting a tension between strong profit performance and softer forward guidance. The company's adjusted EPS beat of roughly 38% above consensus and its margin expansion were clear bright spots, supported by tariff refunds and improved profitability. However, the revenue miss and, more notably, the full-year adjusted EPS guidance of $1.05–$1.20 versus a consensus near $1.30 weighed on sentiment. Some coverage noted that shares initially moved lower after the release, though other reports described the stock as ticking up. The market's cautious tone suggests investors are focused less on the one-time tariff benefit and more on the durability of demand and earnings into 2027.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will want to watch whether Mattel can deliver on its full-year sales growth target of 1% to 4% in constant currency as the holiday season unfolds. The fourth quarter is traditionally the company's most important, so sell-through of core brands and any inventory build or discounting trends will be closely scrutinized.

The tariff refund that boosted third-quarter margins is non-recurring, which means the roughly 48% full-year adjusted gross margin guidance is a key barometer of underlying profitability. Higher advertising spending, including costs tied to the "Mattel 163" initiative, also bears monitoring, as it may pressure near-term margins even if it supports long-term brand investment.

Finally, capital allocation remains in focus after Mattel repurchased $308 million of shares in the first nine months of 2026. Continued buybacks, along with any commentary on tariffs, currency, and cost inflation, will help shape expectations for the coming fiscal year.

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