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Mattel Reports Third Quarter 2026 Financial Results
Third Quarter 2026 Highlights Versus Prior Year
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Net Sales of $1,807 million, up 4% as reported, and 3% in constant currency
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Gross Margin of 54.8%, an increase of 480 basis points; Adjusted Gross Margin of 55.0%, an increase of 480 basis points; primarily driven by $88 million of tariff refunds received
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Operating Income of $476 million, an increase of $96 million; Adjusted Operating Income of $502 million, an increase of $106 million
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Net Income of $354 million, an increase of $75 million
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Earnings per Share of $1.23 compared to $0.88 per share; Adjusted Earnings per Share of $1.30 compared to $0.91 per share
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Hot Wheels continued its strong performance, with Gross Billings up 7% as reported, and 6% in constant currency
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$308 million of shares repurchased in the first nine months of 2026
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Company announced Steve Totzke as President and Chief Operating Officer
EL SEGUNDO, Calif., November 05, 2026–(BUSINESS WIRE)–Mattel, Inc. (NASDAQ: MAT) today reported third quarter 2026 financial results.
Roger Lynch, Chairman and CEO of Mattel, said: “My first few weeks leading Mattel have reinforced my belief in the company’s potential. I also see clearly where we must improve. We will focus our resources on our greatest opportunities and translate the strength of Mattel’s portfolio and capabilities into more consistent financial performance. Our priorities are clear: strengthen our brands and win in toys, drive innovation and creativity, and invest with discipline to drive profitable growth.”
Third Quarter Financial Overview
Net Sales were $1,807 million, up 4% as reported, and 3% in constant currency, versus the prior year’s third quarter. The increase in Net Sales as reported was driven by a 4% increase in North America and a 5% increase in International. The increase in Net Sales in constant currency was driven by a 4% increase in North America and a 3% increase in International.
Reported Gross Margin was 54.8%, versus 50.0% in the prior year’s third quarter, and Adjusted Gross Margin was 55.0%, versus 50.2%. The improvement in Reported and Adjusted Gross Margin was primarily driven by $88 million of tariff refunds received. Inflation and higher royalties more than offset other benefits, including the contribution of Mattel163, cost savings, and favorable foreign exchange.
Reported Operating Income was $476 million, an increase of $96 million, and Adjusted Operating Income was $502 million, an increase of $106 million. The increase in Reported and Adjusted Operating Income was primarily driven by higher Gross Profit, partly offset by higher Advertising expenses.
