MGM Resorts International (NYSE: MGM) — Q2 2026 Earnings Preview

Report date: Results expected tomorrow, July 28, 2026 (2026Q2 Business Update), with a conference call to follow. Company guidance points to an after-market release on July 29 with a 5:00 p.m. ET call — investors should confirm timing, but the print is imminent either way.

The Elephant in the Room: The Diller/People Inc. Takeover Bid

This is arguably the single most important context for the print. On June 1, 2026, Barry Diller's People Inc. (formerly IAC), which already owns roughly 26% of MGM and on whose board Diller sits, made an unsolicited all-cash offer of $48.30/share (~$18 billion) to acquire the rest of the company it doesn't already own. MGM's board subsequently formed a special committee with independent advisors to evaluate the proposal, which the company reportedly believes undervalues its assets. Shareholder law firms have since opened investigations into potential board fiduciary-duty conflicts given Diller's dual role as bidder and director, and Nevada gaming regulators are reportedly reviewing the deal's implications.

Context that matters for valuation: Morgan Stanley's Stephen Grambling calculated the $48.30 offer equates to roughly 7.7x 2026 consensus EV/EBITDAR (adjusted for MGM's Macau minority interest), which he compared to Caesars' agreed take-private by Tilman Fertitta at ~7.5x — a deal announced in late May 2026 valuing Caesars at $17.6 billion ($31/share cash plus assumed debt). That Caesars deal is itself notable read-through: it validates take-private appetite for Strip/regional casino portfolios at similar multiples to what Diller is offering.

MGM shares currently trade around $46, below the $48.30 offer — signaling the market is pricing in meaningful deal-completion risk (or hoping for a bump) rather than treating it as a done deal. Expect the Q2 call to draw heavy questions on: (1) special committee timeline/process, (2) whether the operating results support a "we're worth more than $48.30" narrative, and (3) any update on competing bids or a sweetened offer.

Q1 2026 Recap — Setting the Baseline

Q1 2026 (reported April 29) showed encouraging inflection points that should carry into Q2:

What to Watch in Q2 2026

1. Las Vegas — easier comps, but a bifurcated consumer. Q2 2025 was a tough base: Las Vegas Strip net revenues fell 4% y/y in that quarter due to the MGM Grand room remodel and weaker hold, with Segment Adjusted EBITDAR down 9% to $710 million. With the Grand renovation now complete and back online for the full year, management guided on the Q1 call to expect Las Vegas EBITDA growth for full-year 2026, while acknowledging continued midweek softness at value-tier properties (Luxor/Excalibur, ~6% of EBITDA) and a sharp decline in Canadian visitation (down 30-40%). Watch RevPAR trends, the reception to the new all-inclusive packages at Luxor/Excalibur (management cited strong early demand and roughly a third of bookings from first-time visitors), and convention/group mix, which was expected to rise ~2 points y/y to 20% of room-night mix.

2. Regional Operations — tough comp. Q2 2025 was a record quarter for this segment (net revenues +4% to $965 million, EBITDAR +7% to $309 million), so the y/y bar is elevated. Zacks consensus modeling points to continued modest growth in casino/rooms metrics.

3. MGM China — watch margin under the new brand-fee structure. Management guided that pre-brand-fee property margins should stay in the "mid- to high-20s," with the new 3.5% fee compressing reported segment margin into the "mid-20s" going forward — that's a structural change analysts will be modeling carefully. Macau market-wide GGR data for the quarter showed mixed trends: VIP baccarat GGR fell 2.6% y/y to MOP15.9 billion while mass-market (including slots) grew about 0.8%, and Las Vegas Sands (which already reported) flagged that low VIP hold and World Cup-related visitation softness distorted Q2 Macau results across the market — a read-through worth bearing in mind for MGM China's headline numbers.

4. MGM Digital / BetMGM — World Cup wildcard. BetMGM's sportsbook had a record-breaking FIFA World Cup, with volume tripling versus the 2022 tournament, which should support Q2/Q3 handle and revenue at both BetMGM (unconsolidated venture) and MGM Digital's international sportsbook operations. However, management also flagged incremental Brazil investment "beyond original guidance" given regulatory/tax changes and competitive intensity — watch for confirmation that MGM Digital's loss is still narrowing on a full-year basis, with Gary Fritz's target of "close to breakeven" in 2027 still intact.

5. Capital returns and Japan. MGM repurchased ~2.5 million shares for $90 million in Q1, with $1.5 billion remaining under authorization; management explicitly flagged "reaccelerating share repurchases at current valuation levels" using Northfield proceeds — a data point activists and the special committee will scrutinize alongside the takeover bid. Japan (MGM Osaka, targeted for 2030 opening) remains on budget, with ~$200-225M of funding expected for 2026, largely pre-funded via a yen credit facility.

Consensus Expectations

Wall Street models a year-over-year EPS decline despite revenue growth — a function of tough prior-year comps (Q2 2025 Adjusted EPS was $0.79) and cost pressures (insurance, brand fee, digital investment):

Stock Setup Into the Print

MGM shares have been on a wild ride in 2026 — trading in the mid-$30s through April, climbing into the high-$30s/low-$40s post-Q1 earnings, then spiking from the high-$40s to nearly $51 in early June on the Diller bid news, before drifting back down to the mid-$40s (~$46 as of July 27) as deal uncertainty and special-committee process lingered. That means the stock now sits below the $48.30 offer price — the market's real-time referendum on deal-closing odds and/or whether fundamentals alone would support a higher valuation.

Bottom Line for Investors

This print is unusual in that the M&A overhang will likely overshadow the underlying operating numbers. Investors should watch for: (1) any management commentary — even indirect — on the special committee process or valuation of the business relative to the $48.30 offer; (2) confirmation that Las Vegas EBITDA growth is tracking toward management's full-year guidance now that the MGM Grand renovation comp has rolled off; (3) whether the self-insurance/litigation cost issue flagged in Q1 recurs; (4) Macau margin trends under the new branding-fee regime; and (5) any incremental color on capital allocation (buyback pace) that could be read as a signal about the board's confidence in intrinsic value versus the takeover price.