TKO Group: UFC Growth Drives Higher 2026 Profit Forecast

Investors in TKO Group Holdings, the parent company of the Ultimate Fighting Championship, World Wrestling Entertainment, and IMG, now face a higher financial bar for the rest of 2026. The conglomerate announced on November 4 that it is increasing its full-year revenue and profit targets for the second time this year. This adjustment follows a third quarter where total revenue hit $1.36 billion, a 21 percent jump over the same period last year.

The primary driver of this upward revision was the UFC. Revenue for the combat sports division climbed 60 percent to $519.2 million. Adjusted EBITDA for the UFC increased by 72 percent, reaching $285.3 million. Mark Shapiro, President and Chief Operating Officer, attributed this performance to strong results in media rights, sponsorships, live events, and consumer products. He stated that macroeconomic trends favor live events, positioning the company’s assets at the center of a premium entertainment ecosystem.

Not all divisions performed identically. WWE revenue dipped 1 percent to $399.3 million, primarily because of lower income from live events and hospitality. However, the division still managed to grow its adjusted EBITDA by 5 percent to $217.2 million, aided by gains in media rights and consumer product sales. The IMG division also contributed to the company’s overall success. Its revenue rose 16 percent to $391.3 million, while adjusted EBITDA surged 89 percent to $115.9 million. Shapiro noted that increased hospitality income related to the 2026 FIFA World Cup helped fuel this growth.

Based on these quarterly results, TKO adjusted its 2026 projections. The company now expects full-year revenue to land between $5.790 billion and $5.830 billion. Its adjusted EBITDA guidance has been raised to a range of $2.295 billion to $2.315 billion. Net income for the third quarter also climbed to $277.9 million, up from $171.1 million in the prior year. The company reported that adjusted EBITDA for the entire group surged 54 percent to $555.7 million for the three-month period.

Shapiro emphasized that the company’s portfolio is durable, with most existing revenues secured for the next five to seven years. He described the current period as a "year of execution" and expressed optimism about the organization’s runway. The mixed performance across the three divisions, with the UFC's massive growth offsetting the slight decline in WWE, supports the decision to raise annual targets. The updated guidance reflects the specific financial outcomes of the third quarter and the company's current outlook for the remainder of the fiscal year.