DraftKings 2026 Guidance Misses Estimates, Shares Plunge 12.7%
DraftKings projected 2026 revenue at $6.7 billion midpoint, missing consensus of $7.3 billion, and guided adjusted EBITDA at $800 million versus $981 million analysts’ forecast. Shares fell 12.7% after mixed fourth-quarter results, as revenue grew 42.8% to $1.99 billion while adjusted EPS of $0.36 missed the $0.41 estimate.
1. 2026 Guidance Falls Short of Estimates
DraftKings sees 2026 revenue of $6.7 billion at midpoint, versus $7.3 billion consensus estimate, and forecasts adjusted EBITDA of $800 million compared to $980.6 million analysts’ consensus.
2. Mixed Fourth-Quarter Performance
In Q4, revenue rose 42.8% year-over-year to $1.99 billion, meeting expectations, but adjusted EPS came in at $0.36, below the $0.41 target.
3. Share Price Reaction
Shares plunged 12.7% in the morning session, marking one of the steepest one-day drops in the past year as investors digested the weak outlook.
4. Historical Volatility and Investor Impact
DraftKings has recorded 25 price swings greater than 5% over the last year, and its shares are down 38% year-to-date, highlighting elevated volatility and potential buying opportunities.