Churchill Downs (NASDAQ:CHDN) Releases Earnings Results, Meets Expectations

Churchill Downs (NASDAQ:CHDN) announced its quarterly earnings data on Wednesday. The company reported $3.45 EPS for the quarter, meeting the consensus estimate of $3.45, Zacks reports. The firm had revenue of $980.00 million for the quarter, compared to the consensus estimate of $978.28 million. Churchill Downs had a net margin of 13.21% and a return on equity of 43.50%. The company’s revenue was up 4.9% on a year-over-year basis. During the same period last year, the firm earned $3.10 EPS.

Churchill Downs Trading Down 0.8%

NASDAQ CHDN traded down $0.69 during trading on Wednesday, hitting $88.53. The stock had a trading volume of 1,408,473 shares, compared to its average volume of 754,321. Churchill Downs has a one year low of $80.24 and a one year high of $118.35. The stock has a 50 day simple moving average of $86.83 and a 200 day simple moving average of $90.80. The stock has a market capitalization of $6.17 billion, a price-to-earnings ratio of 14.01, a P/E/G ratio of 0.58 and a beta of 0.67. The company has a debt-to-equity ratio of 4.44, a quick ratio of 0.54 and a current ratio of 0.54.

Analyst Upgrades and Downgrades

CHDN has been the subject of a number of research analyst reports. Weiss Ratings lowered shares of Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Wells Fargo & Company dropped their target price on shares of Churchill Downs from $132.00 to $120.00 and set an “overweight” rating for the company in a research report on Tuesday, July 14th. Citizens Jmp raised their target price on shares of Churchill Downs from $146.00 to $149.00 and gave the company a “market outperform” rating in a research note on Friday, April 24th. Jefferies Financial Group reiterated a “buy” rating on shares of Churchill Downs in a report on Thursday, July 2nd. Finally, Mizuho boosted their price target on shares of Churchill Downs from $146.00 to $155.00 and gave the stock an “outperform” rating in a research note on Friday, April 24th. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $138.50.

Institutional Investors Weigh In On Churchill Downs

Hedge funds and other institutional investors have recently modified their holdings of the business. AQR Capital Management LLC boosted its holdings in Churchill Downs by 29.8% during the 1st quarter. AQR Capital Management LLC now owns 3,415 shares of the company’s stock valued at $373,000 after acquiring an additional 784 shares during the period. Goldman Sachs Group Inc. grew its position in Churchill Downs by 33.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 483,252 shares of the company’s stock valued at $53,675,000 after acquiring an additional 121,204 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Churchill Downs by 7.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,800 shares of the company’s stock worth $25,080,000 after purchasing an additional 15,161 shares during the period. Geneos Wealth Management Inc. increased its stake in Churchill Downs by 1,364.7% in the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the company’s stock worth $28,000 after purchasing an additional 232 shares during the period. Finally, Sivia Capital Partners LLC bought a new stake in shares of Churchill Downs during the second quarter worth $229,000. 82.59% of the stock is currently owned by hedge funds and other institutional investors.

Key Churchill Downs News

Here are the key news stories impacting Churchill Downs this week:

• Positive Sentiment: Revenue and earnings increased year over year. Churchill Downs reported second-quarter 2026 revenue of approximately $980 million, up 4.9% from the prior year and slightly ahead of the roughly $978 million consensus. Earnings per share rose to $3.45 from $3.10 a year earlier. Churchill Downs 2026 Second Quarter Results
• Positive Sentiment: United Tote acquisition expands the company’s wagering technology operations. Churchill Downs agreed to acquire NYRA’s 49% stake in United Tote, giving it full ownership of the pari-mutuel wagering equipment and services business. The transaction could provide greater operational control and potential long-term synergies. United Tote Acquisition
• Positive Sentiment: Analyst price targets remain well above the current trading level. Brokerages reportedly maintain a consensus price target of $138.50, implying favorable longer-term expectations, although targets may not yet reflect the latest earnings report and strategic updates. Consensus Price Target
• Neutral Sentiment: Churchill Downs is reviewing strategic options for its gaming assets. A comprehensive review, including a possible sale of certain gaming operations, could unlock value or sharpen the company’s focus, but no transaction has been announced. Strategic Gaming Asset Review
• Neutral Sentiment: Additional Churchill Downs Racetrack projects are planned for 2027 and 2028. The Victory Run construction project, an expanded Homestretch Club and upgraded infield seating are intended to improve the visitor experience and future revenue capacity, but will require significant investment before benefits are realized. Churchill Downs Capital Projects
• Negative Sentiment: EPS was mixed against estimates. The $3.45 result matched the consensus cited by some outlets but missed the Zacks estimate of $3.51. The shortfall may be contributing to the stock’s weaker reaction despite revenue meeting or exceeding expectations. Churchill Downs Q2 Earnings Estimate

About Churchill Downs

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.