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flag Madison Square Garden missed earnings estimates despite strong revenue and event success, citing high expenses and a falling stock.

flag Madison Square Garden Entertainment reported Q2 2026 earnings of $1.94 per share, missing estimates by $0.39, despite $459.94 million in revenue—12.9% higher year-over-year and above the $448.21 million consensus. flag Strong results were driven by a record-breaking Christmas Spectacular and a 30-night Harry Styles residency, while adjusted operating income rose 16%. flag However, net margin was 3.65% and return on equity was negative due to elevated SG&A expenses from nonrecurring charges. flag The stock fell 2.5% to $60.42 amid mixed analyst reactions, with a high P/E ratio of 86.32. flag Strategic partnerships with Anheuser-Busch and Infosys, along with improved sponsorship sales, signal long-term growth potential.

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