Churchill Downs reports higher Q3 earnings and expands shareholder returns
Churchill Downs reported Q3 2026 net revenue of $696 million, up 1.9% year over year, with GAAP EPS of $1.15 and adjusted EPS of $1.23. Adjusted EBITDA reached $264 million, while Virginia operations faced competition from a temporary Petersburg casino and approximately $5 million in new tax-related expenses. The company plans to sell nine regional gaming properties by year-end, authorized a $750 million share repurchase program, and raised its dividend by 7% to $0.469 per share.
Why it matters
The results give investors updated earnings, cash-return and operating data as Churchill Downs shifts toward its racing, HRM and TwinSpires businesses. The regional asset sales would change the company's portfolio and capital allocation, while Virginia competition and tax costs remain a pressure on that segment.
Key facts
- 1Q3 2026 net revenue was $696 million, a 1.9% year-over-year increase. finance.yahoo.com
- 2GAAP EPS was $1.15 and adjusted EPS was $1.23. finance.yahoo.com
- 3Adjusted EBITDA was $264 million, a record for the third quarter. fool.com
- 4The board authorized a $750 million share repurchase program and increased the dividend by 7% to $0.469 per share. fool.com
- 5Management identified approximately $5 million of new tax expense in Central Virginia and competition from the temporary Petersburg casino. fool.com
- 6Churchill Downs plans to divest nine regional gaming properties by year-end. fool.com
Open questions
- The materials disagree on the revenue comparison with estimates, describing the result as a miss, a beat, or in line.
- The materials also differ on whether reported EPS matched or exceeded expectations, reflecting different cited estimates.
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.