Mattel (NASDAQ:MAT) Releases Quarterly Earnings Results, Beats Expectations By $0.36 EPS

Mattel (NASDAQ:MAT) announced its earnings results on Thursday. The company reported $1.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.94 by $0.36, FiscalAI reports. Mattel had a return on equity of 16.20% and a net margin of 7.79%. The business had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.84 billion.

Here are the key takeaways from Mattel’s conference call:

• Mattel lowered its 2026 outlook, now forecasting constant-currency sales growth of 1%–4%, adjusted operating income of $500 million–$570 million, and adjusted EPS of $1.05–$1.20. Management attributed the revision to softer-than-expected point-of-sale trends that slowed late in Q3 and continued into Q4 across major markets.
• Q3 net sales rose 3% in constant currency to $1.81 billion, adjusted operating income increased to $502 million, and adjusted EPS reached $1.30 from $0.91 a year earlier. However, adjusted gross margin’s 480-basis-point improvement was largely driven by tariff refunds, including an $88 million benefit to cost of goods sold.
• Brand performance was mixed: Hot Wheels continued to show strength and is approaching $2 billion in gross billings, while Barbie remained below management’s expectations despite a slight improvement in trends. Vehicles and partner-brand dolls grew, while infant, toddler, and preschool declined, primarily due to Fisher-Price.
• New CEO Roger Lynch said Mattel will sharpen its focus on core toys, brand execution, innovation, and disciplined investment, with digital and entertainment opportunities built around stronger toy franchises. CFO Peter Griffith said the company is reviewing how it can simplify operations and use technology, data, and AI to improve productivity; the leadership team plans to provide 2027 guidance in February.

Mattel Stock Down 3.9%

NASDAQ:MAT traded down $0.60 during mid-day trading on Thursday, reaching $14.97. The stock had a trading volume of 5,967,909 shares, compared to its average volume of 5,185,959. The stock has a market cap of $4.28 billion, a P/E ratio of 11.01, a PEG ratio of 1.62 and a beta of 0.59. The business’s 50 day moving average is $15.02 and its 200 day moving average is $15.44. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.90 and a quick ratio of 1.26. Mattel has a fifty-two week low of $12.40 and a fifty-two week high of $22.48.

Trending Headlines about Mattel

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Mattel reported third-quarter adjusted earnings of $1.30 per share, above the $0.94 consensus estimate. Mattel Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Steve Totzke will become president and COO on November 11, overseeing Mattel’s brands, sales and commercial operations. Roberto Stanichi is leaving to pursue another opportunity; the leadership changes could affect execution as the company works to improve performance. Mattel leadership announcement
• Negative Sentiment: Third-quarter revenue was $1.81 billion, below analysts’ $1.84 billion estimate. Mattel also lowered its 2026 forecasts for net sales, adjusted operating income and earnings per share, a concern heading into the holiday season. Reuters: Mattel cuts annual forecasts
• Negative Sentiment: Tariff refunds boosted margins, tempering the quality of the earnings beat. The lower outlook and sales shortfall appear to have outweighed the stronger-than-expected EPS result. Barron’s: Mattel’s Struggles Continue

Insider Buying and Selling

In other news, EVP Roberto Isaias sold 39,083 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $15.02, for a total transaction of $587,026.66. Following the transaction, the executive vice president owned 144,390 shares in the company, valued at $2,168,737.80. This represents a 21.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.90% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Roth Capital reduced their price target on Mattel from $16.00 to $15.00 and set a “neutral” rating for the company in a report on Tuesday, July 14th. Odeon Capital Group began coverage on shares of Mattel in a report on Thursday, July 16th. They issued a “buy” rating on the stock. The Goldman Sachs Group downgraded Mattel from a “neutral” rating to a “sell” rating and decreased their price target for the stock from $15.00 to $12.00 in a research note on Thursday, July 9th. Citigroup lifted their price target on shares of Mattel from $15.00 to $17.00 and gave the company a “neutral” rating in a report on Tuesday, October 13th. Finally, Seaport Research Partners upgraded shares of Mattel from a “neutral” rating to a “buy” rating and set a $20.00 price objective on the stock in a research note on Monday, October 12th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Mattel has a consensus rating of “Hold” and a consensus price target of $18.00.

About Mattel

Mattel, Inc is a global toy and entertainment company that designs, manufactures and markets a broad portfolio of toys, games and consumer products. Its best-known brands include Barbie, Hot Wheels, Fisher-Price, American Girl, Matchbox, UNO, Masters of the Universe and Thomas & Friends. Mattel also develops entertainment content and licenses its intellectual property for use in consumer products, digital experiences and other media.

Founded in 1945, Mattel has expanded from a U.S.