TKO Group Holdings Q3 2026: UFC Revenue Surges 60%, Guidance Raised Again

TKO Group Holdings posted GAAP earnings per share of $1.33 for the third quarter of 2026, beating expectations against the consensus estimate of $1.09. Total revenue came in at $1.36 billion, up 21.4% year over year but just under the $1.38 billion Wall Street had expected, missing expectations by 1.45%.

The standout story inside the quarter was the UFC segment, whose revenue surged 60% to $519.2 million. That jump was driven by the new Skydance media rights deal that began in January 2026, an expanded event calendar that included one additional Numbered Event and one additional Fight Night, and record-setting ticket sales at UFC 329. UFC segment margins reached 55% on the back of that revenue growth.

The other two major segments offered a more mixed picture. WWE revenue slipped 1% to $399.3 million, weighed down by three fewer Main Roster Premium Live Events and lower SummerSlam sales, though the ESPN distribution agreement that began in September 2025 provided a partial offset. IMG revenue grew 16% to $391.3 million, with Adjusted EBITDA in that segment jumping 89% to $115.9 million on FIFA World Cup 2026 hospitality sales and new marketing and distribution deals.

GAAP net income reached $98.7 million, up 140.7% year over year, while operating income of $377.5 million grew 91.5%. Free cash flow for the quarter was $449.9 million. The GAAP figures include $39.6 million in equity-based compensation, $34.6 million in legal costs tied partly to WWE stockholder litigation, and $6.4 million in restructuring and impairment charges.

Management raised full-year 2026 revenue guidance to a range of $5.79 billion to $5.83 billion, up from the prior range of $5.775 billion to $5.825 billion set in August. That marks the second upward revision this year. Adjusted EBITDA guidance was similarly lifted, to $2.295 billion to $2.315 billion from $2.275 billion to $2.305 billion.

On capital return, TKO's board-authorized $3 billion share repurchase program had approximately $936 million remaining as of November 4, 2026, and the company said it intends to repurchase that balance funded primarily through additional debt and cash on hand. A quarterly cash dividend of $0.79 per Class A share was paid on September 30, 2026, based on an aggregate distribution of roughly $150 million from TKO Operating Company.