How TKO Group Holdings earnings, guidance and buybacks set the stage for investors

TKO Group Holdings (TKO) reported second quarter 2026 results on 3 August, alongside raised full year revenue guidance and an update on its ongoing share repurchase program.

Sales for the quarter were US$1,547.08 million compared with US$1,308.44 million a year earlier. Net income was US$101.58 million compared with US$98.37 million, with diluted earnings per share from continuing operations at US$1.34 versus US$1.17.

For the first six months of 2026, TKO Group Holdings reported sales of US$3,143.95 million compared with US$2,577.24 million in the prior year period. Net income for the same span was US$190.93 million compared with US$156.77 million.

On the same day, the company lifted its full year 2026 revenue outlook. Management now expects revenue of US$5.775b to US$5.825b, compared with the earlier range of US$5.675b to US$5.775b issued in February.

The latest buyback tranche also moved forward. From 1 April to 22 July 2026, TKO Group Holdings repurchased 2,053,553 shares for US$397.8 million, representing 2.74% of the company.

Since launching the program in October 2024, the company has now completed repurchases of 9,945,668 shares, equal to 12.66% of its share count, for a total of US$1,879.41 million.

For investors tracking TKO stock, these three updates, namely earnings, guidance and buybacks, arrive with the shares last closing at US$187.29 on 5 August 2026.

Over the past year, TKO Group Holdings has paired these earnings, guidance and buyback updates with mixed short term share price moves, including a 1 day share price return of 2.31% and a year to date share price decline of 9.5%, while the 1 year total shareholder return is 18.33% and the 5 year total shareholder return is close to 3x.

If you want to see what else is moving around key themes in the market, this is a good time to look beyond TKO Group Holdings and check out 20 top founder-led companies

After the latest guidance lift, buybacks and a 1 year total return of 18.33%, TKO Group Holdings at US$187.29 leaves you with a simple fork in the road: pay up now or wait for a cheaper entry and risk missing it.

Most Popular Narrative: 20.1% Undervalued

At a last close of $187.29, the most followed narrative puts TKO Group Holdings fair value at $234.39, which implies a sizeable valuation gap for investors to unpack.

Embedded step ups in long-term media rights for UFC with Paramount and WWE with ESPN and Netflix, alongside annual escalators and broader distribution, are set to structurally lift high-margin contractual revenue and expand EBITDA margins and earnings visibility from 2026 onward.

Curious what sits behind that 20.1% discount tag? The story leans heavily on faster earnings growth, wider margins and a different profit multiple than today. The exact mix of those levers is where the narrative really gets interesting.

Result: Fair Value of $234.39 (UNDERVALUED)

However, TKO Group Holdings investors also need to weigh risks such as the potential renegotiation of media rights by streamers and higher talent costs eroding segment margins over time.

Another View on TKO Group Holdings Valuation

The fair value narrative puts TKO Group Holdings at $234.39, which points to upside from the current $187.29. The P/E picture is more cautious. TKO trades at 59.6x earnings, well above the US Entertainment industry at 20.4x and its own fair ratio of 37.5x, which suggests less room for error if the earnings story slips.

For readers who want to see how the numbers stack up in more detail, including peers and the fair ratio that the market could move toward, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With TKO Group Holdings showing both potential upside and pressure points, it makes sense to move quickly and compare the narrative with the data. To see how the positives and negatives stack up side by side, review the 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond TKO Group Holdings?

If TKO Group Holdings has sharpened your focus, do not stop here. Use targeted screeners to uncover fresh ideas that fit your risk, income and quality preferences.

• Target potential value opportunities by scanning companies that combine quality fundamentals with room for re rating through the 50 high quality undervalued stocks.
• Strengthen your income stream by reviewing companies that offer higher yields and resilient payouts using the 9 dividend fortresses.
• Prioritise resilience by focusing on companies with healthier balance sheets and solid underlying metrics via the solid balance sheet and fundamentals stocks screener (49 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.