Mattel (NASDAQ:MAT) Posts Quarterly Earnings Results, Beats Expectations By $0.36 EPS

Mattel (NASDAQ:MAT) issued its earnings results on Thursday. The company reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.36, FiscalAI reports. Mattel had a net margin of 7.79% and a return on equity of 16.20%. The company had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.84 billion. During the same period in the prior year, the business earned $0.89 EPS. The firm’s quarterly revenue was up 4.1% on a year-over-year basis.

Here are the key takeaways from Mattel’s conference call:

• Mattel lowered its 2026 outlook, now forecasting constant-currency sales growth of 1%–4%, adjusted operating income of $500 million–$570 million, and adjusted EPS of $1.05–$1.20. Management attributed the revision to softer-than-expected point-of-sale trends that slowed late in Q3 and continued into Q4 across major markets.
• Q3 net sales rose 3% in constant currency to $1.81 billion, adjusted operating income increased to $502 million, and adjusted EPS reached $1.30 from $0.91 a year earlier. However, adjusted gross margin’s 480-basis-point improvement was largely driven by tariff refunds, including an $88 million benefit to cost of goods sold.
• Brand performance was mixed: Hot Wheels continued to show strength and is approaching $2 billion in gross billings, while Barbie remained below management’s expectations despite a slight improvement in trends. Vehicles and partner-brand dolls grew, while infant, toddler, and preschool declined, primarily due to Fisher-Price.
• New CEO Roger Lynch said Mattel will sharpen its focus on core toys, brand execution, innovation, and disciplined investment, with digital and entertainment opportunities built around stronger toy franchises. CFO Peter Griffith said the company is reviewing how it can simplify operations and use technology, data, and AI to improve productivity; the leadership team plans to provide 2027 guidance in February.

Mattel Price Performance

Shares of NASDAQ MAT opened at $15.35 on Friday. The company has a current ratio of 1.90, a quick ratio of 1.26 and a debt-to-equity ratio of 1.17. The stock has a market cap of $4.39 billion, a price-to-earnings ratio of 8.98, a PEG ratio of 1.65 and a beta of 0.59. The company’s 50-day moving average price is $15.02 and its 200 day moving average price is $15.38. Mattel has a 52 week low of $12.40 and a 52 week high of $22.48.

Insiders Place Their Bets

In related news, EVP Roberto Isaias sold 39,083 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $15.02, for a total value of $587,026.66. Following the completion of the transaction, the executive vice president owned 144,390 shares of the company’s stock, valued at approximately $2,168,737.80. This trade represents a 21.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 1.90% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of research firms have recently weighed in on MAT. Odeon Capital Group initiated coverage on shares of Mattel in a research report on Thursday, July 16th. They set a “buy” rating for the company. Citigroup reduced their price target on shares of Mattel from $17.00 to $15.00 and set a “neutral” rating on the stock in a research report on Friday. Bank of America reissued a “buy” rating and set a $21.00 price target on shares of Mattel in a research report on Friday. Seaport Research Partners raised shares of Mattel from a “neutral” rating to a “buy” rating and set a $20.00 price target for the company in a research report on Monday, October 12th. Finally, Argus restated a “buy” rating and set a $22.00 price target on shares of Mattel in a research report on Tuesday, August 25th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $18.09.

Key Headlines Impacting Mattel

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Third-quarter EPS was $1.30, above the $0.94 consensus and up from $0.89 a year earlier. Sales rose 4.1% year over year, with growth in Vehicles and Games and higher gross margins. Zacks earnings coverage
• Positive Sentiment: Hot Wheels billings are nearing $2 billion, and Mattel is launching low-priced, small-scale Hot Wheels model kits. These initiatives may support the brand, though their financial impact is not yet clear. The Motley Fool article
• Neutral Sentiment: Mattel named Steve Totzke president and COO, while Roberto Stanichi is leaving to pursue another opportunity. The leadership change could affect execution, but its business impact remains uncertain. Mattel leadership announcement
• Negative Sentiment: Third-quarter revenue of $1.81 billion missed the $1.84 billion estimate. Mattel lowered its 2026 EPS guidance to $1.05–$1.20, below the $1.30 consensus, and revenue guidance to $5.4–$5.6 billion versus $5.7 billion expected. It also reduced its full-year sales-growth outlook to 1%–4%, raising concerns about demand heading into the holiday season. Reuters report on Mattel’s forecast
• Negative Sentiment: Tariff refunds contributed to stronger margins, so the earnings beat may overstate the strength of ongoing operations. The lowered outlook and sales miss are the clearest near-term headwinds for MAT. Barron’s analysis

Mattel Company Profile

Mattel, Inc is a global toy and entertainment company that designs, manufactures and markets a broad portfolio of toys, games and consumer products. Its best-known brands include Barbie, Hot Wheels, Fisher-Price, American Girl, Matchbox, UNO, Masters of the Universe and Thomas & Friends. Mattel also develops entertainment content and licenses its intellectual property for use in consumer products, digital experiences and other media.

Founded in 1945, Mattel has expanded from a U.S.