Flutter Entertainment (NYSE:FLUT) Shares Gap Down After Earnings Miss

Flutter Entertainment PLC (NYSE:FLUT) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $104.96, but opened at $97.71. Flutter Entertainment shares last traded at $96.51, with a volume of 3,293,874 shares changing hands.

The company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.05). Flutter Entertainment had a positive return on equity of 7.20% and a negative net margin of 4.39%.The business had revenue of $4.33 billion during the quarter, compared to analyst estimates of $4.24 billion. During the same period in the previous year, the company earned $2.95 EPS. Flutter Entertainment’s revenue was up 3.3% on a year-over-year basis.

More Flutter Entertainment News

Here are the key news stories impacting Flutter Entertainment this week:

• Positive Sentiment: Revenue of $4.33 billion exceeded analysts’ $4.24 billion estimate and increased 3.3% year over year, indicating continued top-line growth despite operating challenges. Flutter Entertainment’s Q2 CY2026 beats on revenue but stock drops
• Positive Sentiment: Citi upgraded Flutter to “neutral,” arguing that the recent 13% share-price decline has reset expectations. Michael Burry also reportedly views the selloff as a potential buying opportunity. Citi upgrades Flutter after 13% share price slide
• Positive Sentiment: Benchmark, Stifel, Needham and BTIG retained “buy” ratings, although each lowered its price target. Their revised targets still imply meaningful upside from recent levels.
• Neutral Sentiment: Dan Taylor, a Flutter veteran, will replace Peter Jackson as group CEO. Management expects the company’s strategy to continue, which may provide some stability during the transition. Dan Taylor to become Flutter’s next group CEO
• Negative Sentiment: Second-quarter EPS of $0.49 missed the $0.54 consensus estimate, while the company cut its profit outlook again. The earnings miss and guidance reduction point to weaker near-term earnings momentum.
• Negative Sentiment: Flutter said its U.S. sports-betting business is faltering, raising concerns about FanDuel’s growth, margins and the pace of profitability improvement. Flutter CEO to Step Down as U.S. Sports-Betting Business Falters
• Negative Sentiment: Jackson’s impending departure adds execution uncertainty, particularly as investors reassess the company’s U.S. expansion strategy. Shares fell following the earnings miss and CEO announcement.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on FLUT shares. BNP Paribas Exane began coverage on Flutter Entertainment in a report on Thursday, May 14th. They set an “underperform” rating and a $80.00 target price on the stock. Wells Fargo & Company decreased their price target on Flutter Entertainment from $137.00 to $112.00 and set an “equal weight” rating for the company in a report on Thursday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Flutter Entertainment in a research report on Wednesday, May 27th. Barclays dropped their price objective on shares of Flutter Entertainment from $151.00 to $133.00 and set an “overweight” rating on the stock in a research note on Thursday. Finally, Zacks Research downgraded shares of Flutter Entertainment from a “hold” rating to a “strong sell” rating in a research note on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $168.04.

Insiders Place Their Bets

In other Flutter Entertainment news, COO James Philip Bishop purchased 1,000 shares of Flutter Entertainment stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average price of $99.75 per share, with a total value of $99,750.00. Following the completion of the acquisition, the chief operating officer owned 17,605 shares of the company’s stock, valued at approximately $1,756,098.75. This trade represents a 6.02% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Daniel Mark Taylor acquired 1,611 shares of the stock in a transaction on Tuesday, May 12th. The shares were acquired at an average price of $94.29 per share, with a total value of $151,901.19. Following the purchase, the chief executive officer owned 34,584 shares in the company, valued at $3,260,925.36. This represents a 4.89% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have acquired 4,144 shares of company stock valued at $399,337 and have sold 5,865 shares valued at $564,213. 0.13% of the stock is owned by insiders.

Institutional Trading of Flutter Entertainment

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Capital International Investors grew its holdings in Flutter Entertainment by 146.8% during the 4th quarter. Capital International Investors now owns 8,039,066 shares of the company’s stock worth $1,728,772,000 after acquiring an additional 4,782,302 shares in the last quarter. Cibc World Markets Corp acquired a new stake in shares of Flutter Entertainment in the 4th quarter valued at about $1,678,841,000. Caledonia Private Investments Pty Ltd lifted its position in shares of Flutter Entertainment by 3.8% during the fourth quarter. Caledonia Private Investments Pty Ltd now owns 7,191,861 shares of the company’s stock worth $1,546,538,000 after purchasing an additional 264,856 shares during the last quarter. Hsbc Holdings PLC lifted its position in shares of Flutter Entertainment by 33,988.7% during the first quarter. Hsbc Holdings PLC now owns 5,605,543 shares of the company’s stock worth $575,185,000 after purchasing an additional 5,589,099 shares during the last quarter. Finally, Tiger Global Management LLC increased its holdings in Flutter Entertainment by 9.4% in the fourth quarter. Tiger Global Management LLC now owns 4,003,542 shares of the company’s stock valued at $860,922,000 after buying an additional 345,350 shares during the last quarter.

Flutter Entertainment Price Performance

The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.27. The company has a 50 day simple moving average of $104.57 and a 200-day simple moving average of $113.66. The stock has a market cap of $16.72 billion, a price-to-earnings ratio of -22.36, a PEG ratio of 1.27 and a beta of 1.28.

About Flutter Entertainment

Flutter Entertainment plc is a global sports betting and gaming company that operates a portfolio of consumer-facing brands and digital platforms. The company’s primary activities include online sports betting, casino gaming, poker, and daily fantasy sports, delivered through web and mobile applications as well as retail betting locations in select markets. Flutter focuses on product development, customer acquisition and engagement, and compliance with local gambling regulations across the jurisdictions where it operates.

Flutter’s brand portfolio includes well-known names in different regional markets, such as FanDuel in the United States, PokerStars, Betfair, Paddy Power and Sky Betting & Gaming in Europe and elsewhere.