Mattel Shares Plunge After Missing Earnings Expectations and Issuing Weak Forecast

Mattel, the maker of Barbie, reported fourth-quarter financial results that missed Wall Street estimates for both sales and profit. Despite a 7% increase in net sales to $1.77 billion during the quarter, demand for toys was weaker than expected, especially during the key holiday season.

The company also announced a cautious profit forecast for the full year, citing ongoing cautious consumer spending. December sales in the U.S. grew less than Mattel had anticipated, though the company did report gains in international markets and overall market share growth in important product categories.

Following the earnings report, Mattel's stock dropped by around 30%—its worst intraday decline in more than forty years—as investors reacted to the disappointing results and outlook. The company said it plans to make strategic investments this year, which could put additional pressure on its earnings in the near term.

In contrast, Mattel's competitor Hasbro saw its shares rise, thanks to better performance in its digital gaming segment, highlighting the challenges and differences in strategy among major toymakers.

Mattel's stock dropped because the company reported lower-than-expected sales and profit for the fourth quarter and issued a profit forecast for the year that was below what analysts had hoped for.

Mattel's holiday season sales grew, but not as much as expected, especially in the United States.

Mattel plans to make strategic investments this year, but these may affect short-term earnings.

While both companies had cautious forecasts, Hasbro's digital gaming business performed better, leading to a rise in Hasbro's stock, while Mattel's stock declined significantly.

Reuters

Mattel on Tuesday forecast full-year profit below Wall Street expectations after missing fourth-quarter estimates, as weak discretionary spending weighed on toy demand.

Business Wire

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Mattel, Inc. (NASDAQ: MAT) today reported fourth quarter and full year 2025 financial results. Ynon Kreiz, Chairman and CEO of Mattel, said: “We achieved strong topline growth in the fourth quarter and consumer demand was positive in every region for both the qua...

WSJ

The toy maker's anticipated holiday surge failed to materialize, leading it to post sales and profit below Wall Street expectations in the fourth-quarter.

Benzinga

Mattel, Inc. (NASDAQ:MAT) shares cratered in Tuesday's extended trading after the company released its fourth-quarter earnings report, missing analyst estimates on the top and bottom lines.

Market Watch

Both toymakers faced a difficult holiday season, marred by tariffs and promotions. Only one maker has Magic: The Gathering.

Barrons

Mattel and Hasbro both reported earnings but the stock market reaction has been very different.

Reuters

Mattel and Hasbro both delivered disappointing forecasts for 2026. But Hasbro shares rose as much as 9% on Tuesday on the strength of its digital gaming business, and Mattel stock sank 30% premarket on Wednesday and was set for its worst intraday plunge in over four decades.

Proactive Investors

Mattel, Inc (NASDAQ:MAT) shares opened 27% lower on Wednesday after the toymaker reported quarterly results that fell short of Wall Street expectations and outlined a year of strategic investments that are likely to pressure near-term earnings. The company posted net sales of $1.77 billion in the fo...

Schaeffers Research

Mattel Inc (NASDAQ:MAT) stock is down 24.6% at $15.88 at last check, after the company announced lower-than-anticipated fourth-quarter earnings and revenue and a disappointing earnings forecast.

Investopedia

The holidays have not been kind to Mattel's stock.

Forbes

Investors who tuned into the Mattel earnings conference call yesterday listened to executives say something they've heard before: We expect next year to be better.

Zacks Investment Research

MAT shares plunge after Q4 earnings and revenues miss estimates. Softer December growth and discounting weigh on results.

The Motley Fool

Mattel's all-important holiday shopping season went poorly. Management forecasts further declines in 2026.

Seeking Alpha

Mattel, Inc. shares plunged 25% after disappointing Q4 results and 2026 guidance, with profitability pressured by tariffs and a sluggish Barbie brand. MAT projects 2026 EPS of $1.18–$1.30, well below consensus, and expects gross margins around 50%, reflecting ongoing cost absorption and operational...

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