Mattel (MAT) Q3 2026 earnings summary

Executive summary

• Q3 priorities: strengthen core toys and brands, improve execution, drive innovation, and allocate capital toward profitable growth; digital, content, and live experiences build on the core toy business.

• Q3 net sales rose 4% reported and 3% in constant currency to $1,806.7 million; adjusted operating income reached $501.6 million and adjusted EPS was $1.30.

• Hot Wheels remained strong, while Barbie declined; leadership highlighted the need for more consistent product and brand execution.

Financial highlights

• Q3 reported operating income rose 25% to $476.3 million; net income increased 27% to $353.6 million and diluted EPS was $1.23 versus $0.88.

• Adjusted operating income increased 27% to $501.6 million; adjusted EPS rose to $1.30 from $0.91.

• Reported gross margin rose 480 bps to 54.8%; adjusted gross margin rose 480 bps to 55.0%, primarily reflecting $88.4 million of tariff refunds.

• Advertising increased $25 million to $143 million, primarily due to Mattel163 expenses; adjusted SG&A declined $8 million to $349 million.

• Nine-month sales increased 6% to $3,794.2 million; operating income declined 5% to $384.5 million, while net income rose 36% to $396.4 million, including a $147.9 million Mattel163 remeasurement gain.

Outlook and guidance

• FY26 guidance: net sales growth of 1%–4% in constant currency, adjusted gross margin ~48%, adjusted operating income of $500 million–$570 million, and adjusted EPS of $1.05–$1.20.

• Guidance includes an ~1% FX benefit to FY26 net sales and an adjusted effective tax rate of ~23%; it excludes tariff refunds recognized year to date and any additional refunds for the rest of FY26.

• Revised outlook reflects softer-than-expected POS and late-Q3 deceleration continuing into Q4 across major markets; supply chain is prepared for the full net sales range.

• 2027 guidance and plans are expected with Q4 2026 results in February 2027.