DraftKings Inc. · DKNG · FY2026 Q1 · Calendar Q2 2026

DraftKings Reaffirms 2026 Outlook as Predictions Investment Accelerates

The supplied analysis supports a constructive but conditional view: resilient core results and early Predictions traction can support growth, while investment intensity, regulation and execution remain important constraints.

Reported After market closeNASDAQConsumer Cyclical $10.54B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.20 Consensus $0.22
EPS surprise -9.1% Reported versus consensus
Reported revenue $1.65B Consensus $1.63B
Revenue surprise +0.9% Reported versus consensus

Market reaction

event-close to next-session close
Stock move +1.2% Event window
SPY move +0.8% Same window
Abnormal move +0.4% Stock minus SPY
Volume 2.5× Versus trailing sessions
Subsequent drift -2.9% Up to 20 sessions
DKNGSPY benchmark

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Transcript intelligence

What changed

Predictions became a larger strategic and capital-allocation focus, with management citing lower acquisition costs, higher engagement and $200 million to $300 million of planned 2026 investment. New exchange and combo products, a Spanish-language app and World Cup initiatives were added to the forward plan.

Guidance delta

FY2026 revenue and adjusted EBITDA guidance was reaffirmed; management plans substantial Predictions investment despite added Arkansas launch costs.

Key takeaways

  • Q1 revenue and EBITDA exceeded expectations, with positive net income and nearly $100 million of share repurchases.
  • Predictions is a strategic priority, supported by sharply lower customer-acquisition cost and planned investment of $200 million to $300 million in 2026.
  • Upcoming initiatives include a proprietary exchange, combo bets, a Spanish-language app and World Cup-related customer acquisition.

Management priorities

  • Scale Predictions while investing in marketing, technology and market-making.
  • Expand Sportsbook and iGaming through product launches, media partnerships and additional state opportunities.
  • Develop the proprietary exchange and related products while pursuing further legalization.

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Earnings History

Estimate Beat Miss Match
DKNG REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q4 '23 estimate $1B Q4 '23 actual $1B, miss Q1 '24 estimate $1B Q1 '24 actual $1B, beat Q2 '24 estimate $1B Q2 '24 actual $1B, miss Q3 '24 estimate $1B Q3 '24 actual $1B, match Q2 '25 estimate $1B Q2 '25 actual $2B, beat Q3 '25 estimate $1B Q3 '25 actual $1B, miss Q4 '25 estimate $2B Q4 '25 actual $2B, match Q1 '26 estimate $2B Q1 '26 actual $2B, beat Q2 '26 estimate $2B Q2 '26 actual $1B, miss Q3 '26 estimate $1B Q4 '26 estimate $2B Q1 '27 estimate $2B
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Analyst Consensus ?

ConsensusBuy48 ratings
Bullish3572.9%
Neutral918.8%
Bearish48.3%

Analyst 52W Price Targets

$21.25Previous close
$15Low
$42.47Average
$105High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Sep 24, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
UBS Buy BuyMaintainSep 18, 2026
Needham Buy BuyMaintainSep 18, 2026
Citizens Market Outperform Market OutperformMaintainSep 8, 2026
Bernstein Outperform OutperformMaintainSep 3, 2026
Macquarie Outperform OutperformMaintainAug 11, 2026
Show 43 more rating actions

Named analyst price targets

Upside is calculated against the persisted previous close $21.25. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
UBSRobin Farley$48$22.58 +125.9%Sep 18, 2026
BernsteinIan Moore$29$24.21 +36.5%Sep 3, 2026
Wolfe ResearchAnalyst unavailable$40$23.44 +88.2%Sep 2, 2026
CBREAnalyst unavailable$27$25.03 +27.1%Aug 21, 2026
Truist FinancialBarry Jonas$29$24.85 +36.5%Aug 10, 2026
See 169 more

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Company context

Snapshot as of publication

DraftKings Inc. operates as a leading digital enterprise specializing in sports entertainment and gaming. The company provides sophisticated multi-channel sports betting and gaming technology solutions to operators across 17 countries, facilitating diverse entertainment experiences. Directly, DraftKings manages its own iGaming services under the DraftKings brand in five U.S. states, and separately operates Golden Nugget Online Gaming, another iGaming offering, in three states. Its Sportsbook platform is accessible for both mobile and physical wagers in 18 U.S.…

Historical context

All DKNG earnings

Consumer Cyclical peers this season

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Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-06-01T17:24:37.602195+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-09-24T07:40:55.561263+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-24T07:40:55.558731+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-09-24. For educational purposes only; not investment advice.