Mattel stock plummets 9%, Q4 earnings and guidance below expectations

LootboxPhobia · 2026-02-14T01:09:35+00:00

Mattel's stock price drops 9% as its Q4 earnings and future guidance fall short of expectations. Adjusted earnings per share are $0.39, below the expected $0.54. Despite a 7% revenue growth, it still missed estimates. The company plans to invest $150 million to drive growth and expects 2026 to be a pivotal year.

LootboxPhobia

2026-02-14 01:09:35

Abstract generation in progress

New York - Mattel Inc. (NASDAQ: MAT) stock plummeted 9% after the toy manufacturer reported fourth-quarter earnings that missed analyst expectations and issued a disappointing outlook for the coming year.

The company, headquartered in El Segundo, California, reported adjusted fourth-quarter earnings of $0.39 per share, significantly below the consensus estimate of $0.54. Revenue was $1.77 billion, short of the $1.85 billion expected by analysts, despite a 7% increase compared to the same period last year.

For 2026, Mattel expects adjusted earnings per share of $1.18 to $1.30, well below the consensus of $1.76. The company announced plans to invest approximately $150 million in strategic initiatives aimed at accelerating organic growth, which will impact near-term profitability.

Ynon Kreiz, Chairman and CEO of Mattel, stated, “We delivered strong top-line growth in the fourth quarter, and consumer demand was positive across regions both quarterly and annually, although U.S. December billing growth was below expectations.”

The company’s vehicle category, including Hot Wheels, performed strongly, with quarterly billing increasing by 20%. However, the infant and preschool categories declined by 8% year-over-year.

Mattel’s international business performed well, with quarterly net sales reported to have grown 11%, and at constant currency, up 5%. North American sales increased 5% during the same period.

Kreiz added, “2026 will be an important year for Mattel as we implement a new brand hub strategy to grow our IP-driven games and family entertainment business.” The company expects its strategic investments to “generate high returns and self-finance from 2027 onward.”

The board authorized a new $1.5 billion share repurchase program, expected to be completed by 2028. After repurchasing $600 million worth of shares in 2025, Mattel ended the year with over $1.2 billion in cash.

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