NYSECommunication ServicesEntertainmentSnapshot 2026-08-31
Reading TKO? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Intact: The reason to own it still holds.
TKO grows revenue about 10% yearly, aiming for $5.7 billion in 2026. Profit (Adjusted EBITDA) is rising, targeting $2.24 billion to $2.29 billion. The company is buying back shares, repurchasing $800 million so far. These show solid progress in a tough entertainment sector.
TKO has missed earnings recently and trades at a high price-to-earnings ratio of 117. Revenue growth could slow below expectations. Share buybacks may not continue at the same pace if cash flow weakens.
The market prices in about 10% revenue growth and values TKO roughly 13% above our fair value near $171. Our fair value is 25% below the Street median, reflecting caution on earnings and valuation.
Breaks if: Adjusted EBITDA falls below $2.240 billion in FY26
Breaks if: Annual revenue falls below $5.675 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a long-term thesis on a company with robust earnings quality and strong recent financial performance. The investment is currently characterized as expensive compared to peers, with a neutral management outlook.
The market seems to have priced in a low expectations gap, suggesting that TKO's valuation is aligned with its current performance. However, it is trading at a premium compared to its peers, indicating that investors may have high expectations.
Management is on track to meet its revenue and Adjusted EBITDA targets for 2026, which supports the strong financial performance narrative. However, there is an elevated risk of a next-quarter earnings miss, as TKO has experienced consecutive misses recently.
The thesis hinges on TKO's ability to maintain its guidance and deliver on its financial targets. Additionally, the performance of sector bellwethers like NFLX, DIS, and WBD will be crucial, as their results can impact TKO's momentum.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The latest earnings miss has raised concerns about TKO's performance. Recent stock sales by key executives may also signal a lack of confidence. These factors contribute to a more cautious outlook for the company.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
The company aims to achieve a revenue target between $5.675 billion and $5.775 billion for the fiscal year 2026.
Breaks if: Share repurchases stall and fail to reach $2.0 billion within 4 years
Over the next 1 to 3 years, TKO's performance will depend on its execution against targets and the broader sector dynamics. Not investment advice.
