It has been about a month since the last earnings report for MGM Resorts (MGM Quick QuoteMGM - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is MGM due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for MGM Resorts International before we dive into how investors and analysts have reacted as of late.

MGM Resorts Q2 Earnings Miss Estimates, Revenues Rise Y/Y

MGM Resorts reported second-quarter 2026 results, with earnings missing the Zacks Consensus Estimate, whereas revenues surpassed the same. On a year-over-year basis, the top line increased while the bottom line declined.

MGM Resorts’ results benefited from revenue growth at Las Vegas Strip Resorts and MGM Digital, along with record same-store revenues from Regional Operations. However, lower profitability at MGM China and the regional properties weighed on earnings. Las Vegas group and convention business accounted for 20% of room mix during the quarter.

MGM’s Q2 Earnings & Revenue Details

MGM Resorts reported adjusted earnings per share (EPS) of 59 cents, missing the Zacks Consensus Estimate of 63 cents by 6.4%. The figure declined 25.3% from 79 cents reported in the prior-year quarter.

Quarterly revenues of $4.45 billion topped the consensus mark of $4.44 billion by 0.4%. The top line increased 1% year over year, marking record second-quarter consolidated revenues. Consolidated adjusted EBITDA decreased 5.7% to $610 million.

MGM's Las Vegas Results Gain Ground

Las Vegas Strip Resorts revenues increased 3% year over year to $2.17 billion. Segment adjusted EBITDAR rose 3% to $735 million, while margin improved 30 basis points to 33.9%. Management attributed the EBITDAR increase primarily to a recovery at MGM Grand, supported by remodeled rooms and a favorable hold benefit.

Casino revenues jumped 17% to $536 million as table games win climbed 27% to $451 million. Table games win percentage expanded to 29.6% from 22.9%. However, Room revenues declined 2% to $717 million. Occupancy remained unchanged at 93%, while average daily rate and revenue per available room decreased 4% to $242 and $224, respectively.

MGM Resorts' Regional Trends Stay Mixed

Regional Operations revenues declined 4% to $924 million, reflecting the April sale of MGM Northfield Park. On a same-store basis, revenues increased 3% to $904 million and reached an all-time quarterly record.

Segment adjusted EBITDAR fell 9% to $280 million. Same-store EBITDAR was flat at $271 million, while the corresponding margin contracted 83 basis points to 30.0%. Casino revenues declined 6% as slot win fell 9%, partly offset by a 4% increase in table games win.

MGM's China Profitability Faces Pressure

MGM China revenues were relatively flat at $1.10 billion. Casino revenues decreased 2% to $956 million as main-floor table games drop declined 7%, though table games win increased 2% and win percentage improved to 27.2% from 25.0%.

Segment adjusted EBITDAR dropped 15% to $257 million, and margin fell 383 basis points to 23.3%. Results were pressured by a $21 million year-over-year increase in intercompany branding license fees. Management said World Cup activity temporarily affected June volumes, followed by an encouraging rebound in July.

MGM Resorts' Digital Growth Accelerates

MGM Digital revenues increased 20% year over year to $196 million. The segment posted an adjusted EBITDAR loss of $31 million compared with a loss of $26 million a year earlier, as marketing costs and gaming taxes increased.

BetMGM, MGM's unconsolidated North American venture, generated second-quarter net revenues of $711 million, up 3%. iGaming revenues rose 8% to $483 million, while online sports revenues were flat at $228 million. Adjusted EBITDA declined 15% to $74 million, and average monthly actives fell 3% to 875,000.

MGM Resorts' Balance Sheet and Capital Plans

MGM Resorts ended the second quarter with cash and cash equivalents of $2.55 billion, up from $2.06 billion at the end of 2025. Long-term debt was $6.07 billion compared with $6.23 billion at the end of 2025.

During the first half of 2026, net cash provided by operating activities totaled $1.13 billion, while capital expenditures were $396 million. MGM repurchased approximately 4 million shares for $164 million during the quarter. The remaining authorization under its share repurchase program was $1.4 billion.

Construction of MGM Osaka remains on schedule and within budget for a 2030 opening. Approximately 60% of foundation piles were completed, with concrete and structural steel work progressing.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, MGM has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, MGM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.