TKO Group delivered a strong second quarter in 2026, posting revenue of $1.5 billion for the three months ending in June, an 18% increase year over year that surpassed Wall Street expectations.

The earnings report also boosted investor confidence as the company, which owns both UFC and WWE, raised its full year 2026 guidance for revenue and adjusted EBITDA. Following the announcement, TKO shares climbed in after hours trading after a difficult year for the stock.

Executive Chair and CEO Ariel Emanuel praised the company's performance despite wider economic uncertainty.

"Despite a challenging global environment, TKO delivered solid results in Q2, with strong momentum heading into the back half of the year," Emanuel said. "Premium live content and experiences are heating up in an increasingly AI driven world, and our businesses are well positioned to fully capitalize on societal secular tailwinds."

UFC and WWE Continue to Fuel Growth

UFC generated $536 million in revenue during the quarter, an increase of $120 million compared to the same period last year. The rise was largely driven by higher media rights revenue following a new distribution agreement with Paramount that came into effect in January.

The promotion also benefited from new sponsorship agreements and increased renewal fees, helped significantly by the landmark UFC Freedom 250 event held at the White House in June. However, ticket revenue declined due to the event not selling tickets and because there was one fewer numbered UFC pay per view compared to the prior year.

Meanwhile, WWE posted another strong quarter with revenue climbing $64.7 million to $621 million, continuing its contribution to TKO's overall growth.

Elsewhere, TKO's IMG division generated $354.7 million, marking a $48 million increase year over year.

Profit Climbs Despite Legal Costs

TKO reported net income of $304 million, up $31 million from the previous year, as higher revenues outweighed increased operating expenses. Those costs included $98 million in legal fees and settlement expenses connected to shareholder litigation related to WWE.

Adjusted EBITDA rose 23% to $649.9 million, while free cash flow totaled $349.6 million, down $25.3 million from the same period in 2025.

Shares of TKO finished regular trading up 1.2% before gaining roughly another 2% after the earnings release, trading around $187.

TKO Confident About Long Term Growth

President and COO Mark Shapiro highlighted the company's momentum heading into the remainder of the year, pointing to major global events as key opportunities.

"From UFC Freedom 250 to the FIFA World Cup, TKO continues to deliver on the biggest stages and this quarter reinforced our 2026 execution story," Shapiro said. "Our decision to raise full year guidance reflects both our performance to date and our confidence in TKO's multi year trajectory."

He added: "Our global fan base is expanding, and we are capitalizing on the commercial promise across ticketing, premium hospitality, marketing partnerships, and financial incentive packages. The demand in the experience economy is undeniable and positions us well for multi year growth, margin expansion, and overall value creation."

TKO executives are scheduled to discuss the quarterly results further during an analyst conference call.