Casino resort and entertainment company Red Rock Resorts (NASDAQ: RRR) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 1.9% year on year to $507.3 million. Its GAAP profit of $0.73 per share was 34.4% above analysts’ consensus estimates.
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Red Rock Resorts (RRR) Q1 CY2026 Highlights:
- Revenue: $507.3 million vs analyst estimates of $506.6 million (1.9% year-on-year growth, in line)
- EPS (GAAP): $0.73 vs analyst estimates of $0.54 (34.4% beat)
- Adjusted EBITDA: $212.6 million vs analyst estimates of $217 million (41.9% margin, 2% miss)
- Operating Margin: 28.3%, down from 31.1% in the same quarter last year
- Market Capitalization: $3.20 billion
Company Overview
Founded in 1976, Red Rock Resorts (NASDAQ: RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Red Rock Resorts grew its sales at a 11.8% compounded annual growth rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Red Rock Resorts’s recent performance shows its demand has slowed as its annualized revenue growth of 6.6% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. Note that COVID hurt Red Rock Resorts’s business in 2020 and part of 2021, and it bounced back in a big way thereafter. 
This quarter, Red Rock Resorts grew its revenue by 1.9% year on year, and its $507.3 million of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 2.5% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will face some demand challenges.
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Operating Margin
Red Rock Resorts’s operating margin has generally stayed the same over the last 12 months, and we generally like to see margin increases due to economies of scale and cost efficiency over time.
In Q1, Red Rock Resorts generated an operating margin profit margin of 28.3%, down 2.8 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Red Rock Resorts’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q1, Red Rock Resorts reported EPS of $0.73, up from $0.43 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Red Rock Resorts’s full-year EPS of $2.13 to grow 3.4%.
Key Takeaways from Red Rock Resorts’s Q1 Results
It was good to see Red Rock Resorts beat analysts’ EPS expectations this quarter. On the other hand, its adjusted operating income missed. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 2.5% to $54.68 immediately after reporting.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
