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Mattel Q2 2026 Revenue Growth Masks Profit Drop
Mattel's Q2 revenue beat hides steep profit decline and margin squeeze.
In brief
Mattel's Q2 revenue beat hides steep profit decline and margin squeeze. Mattel reported Q2 2026 revenue growth of 10% but adjusted EPS fell to $0.01, signaling operational stress despite top-line expansion. Originally reported by Alphastreet - Earnings Decoded. Market Intelligence Delivered.
Mattel Reports Q2 2026 Results
Mattel Inc. reported second-quarter 2026 results on August 4, 2026.
Revenue Beats Wall Street Estimates
Net sales reached $1,125 million, 10% growth on reported basis and 9% in constant currency.
Earnings Per Share Plunged
Adjusted EPS declined to $0.01 versus analyst expectations of $0.04 per share.
Margin Compression Accelerates
Reported gross margin contracted 270 basis points to 48.2% from 50.9% in prior-year quarter.
Operating Margin Collapsed
Operating margin deteriorated to 1% from 7.7% in prior-year quarter.
Geographic Performance Divides
North America sales grew 12% in constant currency while international sales grew 5%.
Share Repurchases Continue
Mattel repurchased $100 million of shares in Q2 2026, bringing year-to-date repurchases to $300 million.
Full-Year Guidance Maintained
Mattel reiterated full-year 2026 guidance with adjusted EPS of $1.27 to $1.39.
The one thing
Mattel reported Q2 2026 revenue growth of 10% but adjusted EPS fell to $0.01, signaling operational stress despite top-line expansion.
