Churchill Downs (CHDN) is trading higher as investors digest two fresh catalysts: quarterly results released April 22, 2026, and a strategic agreement announced April 21, 2026 to acquire the intellectual property for the Preakness Stakes and Black-Eyed Susan Stakes for $85 million. The combination of a financial beat and a high-profile racing-asset expansion is supporting the stock’s move.

For the quarter ended March 31, 2026, Churchill Downs reported net revenue of $663 million versus $643 million a year earlier, net income attributable to the company of $83 million, and diluted EPS of $1.16. On an adjusted basis, the company posted adjusted net income attributable to the company of $85 million and adjusted diluted EPS of $1.21, alongside adjusted EBITDA of $257 million, up from $245 million in the prior-year quarter.

Churchill Downs said it reached an agreement to acquire the Preakness Stakes and Black-Eyed Susan Stakes intellectual property from 1/ST Racing’s Maryland operation for $85 million, subject to customary closing conditions. The company plans to license the rights annually to the state of Maryland to stage the races, with the transaction expected to close after the next running of the Preakness on May 16, 2026 while Pimlico undergoes redevelopment.

Key near-term focus areas include how Churchill Downs monetizes the Preakness brand through licensing, sponsorship, merchandising, and future media-rights positioning, and whether the acquisition meaningfully strengthens the company’s long-term racing portfolio economics. Investors will also watch how the company balances capital deployment between acquisitions, debt reduction, and shareholder returns as the spring racing calendar ramps into Kentucky Derby Week beginning April 25, 2026.