Mattel, the famous toy company that makes Barbie and Hot Wheels, released its earnings for the fourth quarter of 2026. The results were disappointing, and the stock price dropped. Even though the brand is still strong, problems in the toy industry hurt performance.
Wall Street had expected adjusted earnings per share to be higher, but they weren’t. Revenue growth stopped because demand in core markets was lower. The company said its profits were lower than expected, which showed how global changes in retail and rising costs were hurting them. Net sales for major brands like Barbie were mixed, but Hot Wheels kept going strong.
Mattel said it now owns all of Mattel163 Mobile Games Studio, which will help the company grow its digital gaming business. This shows that the company is moving toward offering more types of entertainment. CEO Ynon Kreiz talked about the things that will help the company grow in 2026, such as new toys, partnerships with other companies, two big movie releases, and better digital offerings. The goal of this acquisition is to increase long-term revenue streams beyond just toys.
Shares fell sharply in after-hours trading after the company missed its earnings target. This showed that investors were worried about falling sales in North America. Ongoing tariffs and how retailers order things are still problems for the sector, but international sales help a little. Mattel expects a small recovery over the course of the year, focusing on holiday sales and new content tie-ins.
