Sphere Entertainment Co. (SPHR) AI Stock Analysis
SPHR AI stock analysis summary
AI ResearchSphere Entertainment Co. (SPHR) produces, presents, and hosts live events and operates entertainment dining and nightlife venues. In FY2026, revenue increased 18.8% to $1.22B, while the company generated $191.0M in free cash flow. Trailing twelve months net margin stands at -5.7% with a net debt of $440.2M.
- Market cap
- $3.72B
- Revenue (TTM)
- $1.36B
- P/E
- — fwd 28.4x
- 1Y return
- 73.6% S&P 500 16.8%
- Avg. target
- $165.46 59.8% vs last close
Bull case
- Sphere Entertainment generated $191.0M in free cash flow and $243.3M in operating cash flow in FY2026.
- The company delivered FY2026 revenue of $1.22B, representing year-over-year revenue growth of 18.8%.
- Wall Street analysts maintain a mean price target of $165.46, representing 59.8% upside relative to the last close of $103.53.
Bear case
- The company remains unprofitable over the trailing twelve months, recording an operating margin of -19.6% and a net margin of -5.7%.
- Short interest is significant, with short percent of float standing at 34.5%.
- Analyst consensus projects an EPS of -$2.43 for the fiscal year ending December 31, 2026.
What Sphere Entertainment does
Sphere Entertainment Co., formerly known as Madison Square Garden Entertainment Corp., is a New York-based entertainment company that produces, presents, and hosts live events. Its offerings encompass concerts, family shows, special events, and sporting spectacles such as boxing, college basketball, hockey, bull riding, mixed martial arts, esports, and wrestling. The company's venues include The Garden, Hulu Theater, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. Additionally, Sphere Entertainment operates dining and nightlife venues under brand names like Tao, Marquee, Lavo, Beauty & Essex, Cathedrale, Hakkasan, and Omnia to deliver dining and social experiences.
Growth and profitability
Sphere Entertainment grew revenue from $610.1M in FY2022 to $1.22B in FY2026, representing a 5-year revenue CAGR of 13.5%. After generating $1.03B in revenue during both FY2024 and FY2025, FY2026 revenue expanded 18.8% with gross margin improving to 51.6%. Operating margin remained negative at -12.2% in FY2026, though net income reached $33.4M and EPS was -$0.50. For the trailing twelve months, revenue was $1.36B with an operating margin of -19.6% and a net margin of -5.7%. In the latest quarter ended June 30, 2026, revenue grew 11.0% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Sphere Entertainment held $521.3M in cash and short-term investments against total debt of $961.5M, leaving net debt at $440.2M. Total assets stood at $4.43B and shareholders' equity was $2.23B, yielding a debt-to-equity ratio of 0.43 and a current ratio of 1.07. Operating cash flow reached $243.3M in FY2026, supporting free cash flow of $191.0M. Capital expenditures totaled $52.3M, and share buybacks accounted for $50.0M during the fiscal year.
Valuation and performance
Sphere Entertainment carries an enterprise value of $5.24B and a market cap of $3.72B. Its forward P/E ratio of 28.4x trades above the 14.1x median of its US-listed Communication Services peers. The stock's price-to-sales multiple is 2.7x compared to the peer median of 0.8x, while EV/EBITDA is 27.3x versus the peer median of 10.0x. SPHR gained 73.6% over the past year, outperforming the S&P 500 return of 16.8%, and delivered a 5-year return of 219.9% versus 83.0% for the broader index.
What analysts expect
Analyst coverage consists of 7 Strong Buy, 4 Buy, and 2 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $165.46 implies 59.8% upside from the last close of $103.53. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.35B and an EPS of -$2.43. Sphere Entertainment exceeded EPS estimates in all 4 of its last 4 quarters. The company's next earnings announcement is scheduled for November 3, 2026.
Key risks and what to watch
- Sphere Entertainment carries total debt of $961.5M and net debt of $440.2M as of June 30, 2026.
- The stock demonstrates high price volatility, with a beta of 1.60 and a share price 20.2% below its 200-day average.
- Projected revenue growth for the next fiscal year is modest at 0.2%, with revenue estimated at $1.35B.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SPHR AI stock analysis
This page is an AI-written research summary of Sphere Entertainment Co. (SPHR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SPHR income statement, SPHR balance sheet, SPHR key metrics, SPHR analyst forecast, SPHR chart. See the SPHR stock overview for the latest quote and news.
SPHR AI stock analysis FAQ
What was Sphere Entertainment's revenue in FY2026?
Sphere Entertainment reported revenue of $1.22B in FY2026, an increase of 18.8% from $1.03B in FY2025.
Does SPHR pay a dividend?
No, Sphere Entertainment does not pay a dividend.
What is the consensus analyst target for SPHR?
The mean analyst price target is $165.46, which is 59.8% above the stock's closing price of $103.53 on October 16, 2026.
How much debt and cash does Sphere Entertainment have?
As of June 30, 2026, Sphere Entertainment held $521.3M in cash and short-term investments and $961.5M in total debt, resulting in net debt of $440.2M.